What is Predictive CLV by Gpredictive?
The Predictive CLV by Gpredictive is the expected customer lifetime value of any given customer in the future. The prediction service updates the expected revenues per customer frequently and provides them automatically. The values are individual for any specific customer.
What are the benefits?
The Predictive CLV is commonly used to allocate marketing budgets where they have the most impact – on those customers where marketing makes a difference. Top customers are easy to identify. But what about customers that have the potential to become top customers but have only just begun their customer lifecycle? And what about good customers that are about to walk away? Predictive CLV is used to act early in cases like these. See the use cases tab for more on this.
How does it work?
The Predictive CLV is computed in Gpredictive’s Predictive Engine. At the heart of this engine there is a blend of machine learning algorithms and artificial intelligence that serve only one purpose: understand where a customer relationship is headed. As soon as the Predictive Engine is connected to your database it will provide the CLVs of your customers based on the latest information available. Of course, it can do so in real-time.
The CLV can be computed for different timeframes. In most situations 30, 90, or 180 days in advance fit the purpose perfectly fine. Sometimes there is a need for other timeframes. You can freely specify this in case you need a custom timeframe.
Product specific CLV
Often the CLV differs substantially across product groups. In this case the CLV can also be provided specific for the relevant product groups so that you can target the customers more precisely.
CLV based on a customer segment
Every customer is different. But most of the times many customers can be assigned to segments. And often these segments can be quite different. What about inactive customers? In case you wish to re-engage with those a CLV for that specific segment makes a lot of sense. Those with a higher probability to return to you will stand out.
The Predictive CLV is your basic figure. It should be available to anybody. You ask yourself constantly what customers to double down on. The Predictive CLV provides the answer.
You know your best customers by heart. But who are going to be the new best customers? Most customers aren’t best customers from day one. The Predictive CLV finds your future best customers. So now you can invest in those early on – before your competitors do.
Retention / Churn
Part of every story – and the customer lifecycle is no different – that it all comes to an end. Sometimes it will be the final farewell but quite frequently there is this opportunity to let the customer relationship recover again – before it is too late. Our customers typically gain between 6 and 12 months that they are ahead of classic business intelligence.
It ain’t over till it’s over – and even then, some of your former customers will return. The Predictive CLV for re-engagement provides the information where a second chance exists.
Next Best Offer
Though every customer is created equal their preferences are not. The Predictive CLV can also be provided for product interest. So whenever there is a range of different products on offer assign the best ones for each customers.
What data do I have to provide?
There is one single table that is ultimately required. It is the long list former transactions, i.e. What customers bought what product in a certain quantity on what data at what price. And: was is the product returned in case that is applicable. This is the starting point. The Software can derive accurate predictive models from these data.
You have more? Information on touchpoints, discarded shopping carts and all this? That’s excellent. We have a simple data schema that we are happy to provide.
How long does it take until I get the first CLVs?
It depends on the amount of data that you have. The software does some very serious number crunching. It can take up to one day until you get your first CLV. After that it will always just be there.
What proficiency in data science is required?
You do not need any experience in data science. The software will carry out all the processes on its own. In case you are an experienced data scientist then there is the data science mode available. Dive deep if you like and do the magic on your own – just faster by manitudes.
Does updating CLVs incur any workload?
No. The data exchange is done automatically. You decide on the frequency of the CLV updates. It can be anything from quarterly to real-time.