Acquisition strategy and customer value for a home decoration andfurnishings chain
Context
VERTONE has already carried out an initial mission to define its value-oriented customer segmentation.
The customer wanted to take the results of this segmentation a step further, so as to be able to identify ways of recruiting better, more efficiently and better stimulating Customer Value at the beginning of the lifecycle. This means being able to estimate the value of customers as early as possible, with a good level of confidence, and to identify the discriminating characteristics in terms of value.
Objective
Quickly assess the value of acquired customers and improve the ROI of acquisition investments
Identify pockets of value development based on customer behavior at the beginning of the customer lifecycle
VERTONE contribution
- Refine the value calculation approach applied during the first mission
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- A first approach consisted in identifying customer behaviour patterns at the beginning of the lifecycle that are discriminating in terms of customer value.
- In parallel, a second approach was taken to developing a predictive model of individual customer value, using different Machine Learning approaches
- Estimate the past value and total value of customers in more recent cohorts
- Assess the sensitivity of customer value to acquisition patterns for recent cohorts
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