Took Charge and Uncovered Hidden Profits with CLV Analysis

Marketing | Brand Creations

December 2024

Key Takeaways: How Brand Creations Became the Guide

Simplify data for speed. Explore how concise reporting and visualized insights enabled rapid decision-making and strategic recovery from setbacks.

Project Overview

2 Weeks | $450USD

Brand Creations saw an opportunity to elevate their client’s profitability by better understanding customer lifetime value (CLV).

Faced with conflicting tools and formulas, Brand Creations took ownership of the problem and led the effort to develop a clear, actionable CLV strategy.

Through a custom cohort-based analysis and forecasting model, Brand Creations equipped their client with insights that reshaped their marketing strategy, boosted ROI, and unlocked hidden revenue potential.

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Challenges

Brand Creations overcame multiple critical hurdles that stood in the way of their client achieving long-term profitability and marketing confidence:

🌀 Information Overload

Dozens of conflicting CLV formulas online made it difficult to determine the best approach.

The client spent unnecessary time trying to evaluate multiple unreliable methodologies.

🛠️ Tool Dilemma

Inconsistent outputs from multiple tools made it hard to offer a clear recommendation.

The lack of standardization made it difficult to align internal teams and external stakeholders on the best course of action.

🔍 Lack of Tangible Insights

Without actionable insights, it was difficult to connect PPC investment to long-term customer value.

The client lacked a clear story to present to stakeholders, delaying buy-in on necessary budget adjustments.

The Solution: Taking Control

Brand Creations built a data-driven framework to eliminate the confusion and deliver real insights.

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Customer Cohort Analysis - Segmented customers by their first purchase month to precisely track customer behavior over time.

Predictive CLV Forecasting - Built cohort-based forecasts to model future customer lifetime value and uncover ROI potential.

Enhanced Data Quality - Cleaned and refined the data by removing duplicates and internal transactions, improving reliability.

Empowering the Client with Insights - Discovered that premium product buyers had a 37% higher CLV, helping the client pivot their PPC strategy.

The Results: The Impact of Leadership

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💰 37% Higher CLV for Premium Product Buyers - Premium customers delivered 37% higher lifetime value compared to lower-priced product buyers over a 12-month period.

📊 12x ROI Forecast on Premium PPC Campaigns - The cohort model projected a 12x return on investment from focusing PPC spend on premium products.

💼 20% Increase in Average Order Value - Data insights drove a 20% uplift in average order value for campaigns targeting higher-value customers.

⏳ 15% Reduction in Customer Acquisition Costs - By focusing on higher CLV segments, the client achieved a 15% reduction in acquisition costs.

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Key Takeaways: How Brand Creations Became the Guide

Brand Creations took initiative to simplify CLV for their client.
Their cohort model uncovered how premium pricing affects customer loyalty and value.
By taking ownership of the data and analysis, they helped the client secure a higher ROI.