Importance of Lifetime Value Webinar (1)

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Proprietary + Confidential
Not all customers are
the same.
7

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PARETO PRINCIPLE
Customer Centricity
reveals how to
increase profits from
your best customers,
find more like them,
and avoid
over-investing in the
rest
20%
$
80%
Jim Sterne, Founder, Chairman,
Web Analytics Association
80%
20%
8

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Multiple purchase/High LTV
customer
Transactions per user > 5
Revenue per user > $1,000
11

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12

Most commonly, we use Recency,
Frequency and Monetary value
(RFM) to rate customers, based on
the nature of their behaviour and
spending habits…
Frequency
$
Recency

A B C D E

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Budget allocations based on a longer view
of customer value;
Less reliance on sales and/or seasonal
events;
High likelihood of better long-term
outcomes with efforts focus on acquiring
and retaining the best customers

Frequency
Recency
$ ???

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GA360 data
enriched with
CRM data
Anna
Get-a-quote
completed online
Home insurance
purchased over
phone
Customer LTV (M):
$240
GA360 data
CRM data
Sessions Product page views Purchases User ID
3 10 $0 abc123
User ID Customer status Loyalty rating Revenue
abc123 active 4 $240

Scoring
users LTV
Collect Analyse Activate
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GA360 CRMint GA360 ACTIVATION
Connections between
products made easy by
CRMint
Online sales data
CRM DATA
Offline Sales Data
Each user is
scored based
on the recency,
the frequency
and the amount
of their orders
(github)
DV360
SA360
O360
Google Ads
Order User Order
date ID Value
01-02-15 177237 $140
02-02-15 177323 $30
01-03-15 177237 $35
Audience List
bid adjustment
driven by the
model
&
audience
enrichment with
similar audiences
30

Prerequisites
Collect
GA360
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CRMint GA360 ACTIVATION
GA360 Export to
BigQuery 1 - 2 hr
Online sales data
CRM DATA
Each user is
scored based
on the recency,
the frequency
and the amount
of their orders
(github)
DV360
SA360
O360
Offline Sales Data
Google Ads
Order User Order
date ID Value
01-02-15 177237 $140
02-02-15 177323 $30
01-03-15 177237 $35
Audience List
bid adjustment
driven by the
model
&
audience
enrichment with
similar audiences

Prerequisites
GA360
Analyse
CRMint
GA360
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ACTIVATION
GA360 Export to
BigQuery 1 - 2 hr
Deploy CRMInt on GCP
20 mins setup &
configuration
+ 30 mins wait time
Online sales data
CRM DATA
Offline Sales Data
Order User Order
date ID Value
01-02-15 177237 $140
02-02-15 177323 $30
01-03-15 177237 $35
Each user is
scored based
on the recency,
the frequency
and the amount
of their orders
(github)
DV360
SA360
O360
Google Ads
Audience List
bid adjustment
driven by the
model
&
audience
enrichment with
similar audiences

Prerequisites
GA360
CRMint
GA360
Activate
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ACTIVATION
GA360 Export to
BigQuery 1 - 2 hr
Deploy CRMInt on GCP
20 mins setup &
configuration
+ 30 mins wait time
Configure a data
import in GA360
10 mins
2 - 3 hrs in total
Online sales data
CRM DATA
Offline Sales Data
Order User Order
date ID Value
01-02-15 177237 $140
02-02-15 177323 $30
01-03-15 177237 $35
Each user is
scored based
on the recency,
the frequency
and the amount
of their orders
(github)
DV360
SA360
O360
Google Ads
Audience List
bid adjustment
driven by the
model
&
audience
enrichment with
similar audiences

Digital Marketing Maturity
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Clients self-reported clear gains in
effectiveness (incremental profit)
& efficiency (cost savings) along
the path to maturity.
Effectiveness
Up to
+20%
revenue
Nascent
1
Emerging
2
Connected
3
Multi-moment
4
Up to
−30%
cost
Efficiency
Source: BCG-Google Data-Driven Marketing assessment 2018

LTV and Digital Marketing Maturity
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Effectiveness
Emerging
2
Nascent
1
Data Driven
Segmentation in
Google Analytics
Efficiency

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Multiple purchase/High LTV
customer
Transactions per user > 5
Revenue per user > $1,000
37

LTV and Digital Marketing Maturity
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Connected
Effectiveness
Emerging
2
CRM
integration
3
Nascent
1
Data Driven
Segmentation in
Google Analytics
Efficiency

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GA360 data
enriched with
CRM data
Anna
1st Purchase
Order value: $50
2nd Purchase
Order value: $90
3rd Purchase
Order value: $100
Customer LTV: $240
GA360 data
Sessions Product page views Purchases User ID
3 10 $0 abc123
CRM data
User ID Customer status Loyalty rating Revenue
abc123 active 4 $100

LTV and Digital Marketing Maturity
Proprietary + Confidential
Multi-Moment
Effectiveness
Emerging
2
Connected
CRM
integration
3
LTV Modelling
Nascent
1
Data Driven
Segmentation in
Google Analytics
Efficiency

Scoring
users LTV
Connections between products
made easy by CRMint
Online sales data
CRM DATA
Offline Sales Data
Analyse
Each user is
scored based
on the recency,
the frequency
and the amount
of their orders
(github)
Activate
Proprietary + Confidential
GA360 CRMint GA360 ACTIVATION
DV360
SA360
O360
Google Ads
Order User Order
date ID Value
01-02-15 177237 $140
02-02-15 177323 $30
01-03-15 177237 $35
Audience List
bid adjustment
driven by the
model
&
audience
enrichment with
similar audiences
41

WRAP UP
Proprietary + Confidential
All businesses benefit from establishing a view on LTV even if the
starting point is Google Analytics and Google Ads;
There are a number of ‘out of the box’ views in Google Analytics to
help uncover top-line LTV related insights, including LTV by Source,
Campaign & Channel;
More advanced models are possible when you’re able to combine
another data source, such as CRM or PoS data with GA; and
Once this data is properly structured and uploaded into the Google
Cloud Platform all sorts of things become possible, including
predictive modelling and seamless activation in advertising.

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