Case Studies

This is why LTV data can add value to your Business


Our client is a broadcaster selling a mixture of digital, radio and CRM data, for them, CRM is a small but important part of the business as it is the direct communication channel for engaged visitors. Visitor engagement varies widely by consumer demographic, therefore we looked at the LTV (Life Time Value) in the context of different demographic segments within the consumer base.

For this business, the value of a consumer was measured in listening, content consumption and email engagement.

To help improve their services we helped understand the value in terms of the demographic segments, to support commercial decisions and further data acquisition strategies.

How we increased the sales revenue?ltv data

Our client used a value per ‘000 sent metric, charging clients for every email sent to their list. Using historical data we wanted to understand the impact of changing that, looking at other metrics such as value per open or value per click.

To provide a flexible tool to test different value based strategies we built the LTV calculator, showing value by demographic segment. (The table to the left is an example of what this looked like).

In this case, we saw that the open rates were well above industry standards, therefore we suggested moving to a cost per click metric. Using the LTV calculator we could demonstrate a 12% increase in revenue whilst still keeping within the acceptable industry standard of ‘Cost Per Acquisition’.

Informing the data acquisition strategy

The GDPR guidance suggested removing a large proportion of our database, therefore, they wanted to acquire new customers through online advertising.

Using our demographic segmentation, and new cost per click strategy, we were able to see that there was a large proportion of younger listeners online. On the other hand, older customer segments were generally more engaged with the media being produced.ltv data. Using comparable audience segments we could track the value of an audience member and compare the LTV vs the cost of recruitment. Our client from this could balance lower cost acquisition, with greater longer-term value. The result meant that the time for a new customer to break even could be reduced from an average of 3 years to 1 year.

If your business is struggling with data acquisition strategy or increasing sales revenue we would be more than happy to help.

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Author: Howard Thompson, Director