Discover Predictable’s LTV Model

Understanding the true value of your customers can significantly impact your growth and profitability. Predictable’s LTV Model is a powerful tool designed to give deep insights into a brand’s customer base, helping them make informed decisions that drive loyalty and revenue.

What is the LTV Model?

The LTV (Lifetime Value) Model measures the value of each customer over a specific period. By analyzing transaction data, email engagement data, and web/pixel engagement data, the LTV Model provides a comprehensive view of a customers’ historical spend, predicted LTV, and total LTV. This allows businesses to predict future revenue and tailor their marketing efforts accordingly.

Methodology Behind the Model

The LTV Model leverages key first party data sources to generate precise and actionable insights:

• Transaction Data
• Email Engagement Data
• Web/Pixel Engagement Data

By integrating these data points, Predictable creates highly accurate predictions that empower the optimization of marketing strategies.

Seamless Integration

Integrating the LTV Model is straightforward with Predictable’s plug-and-play approach. Customer scores and segments can be seamlessly populated into any Email Service Provider (ESP), Customer Data Platform (CDP), eCommerce platform, or other data hubs.

Strategically Powered Segmentation

Predictable scores and segments are updated daily by default (with more frequent updates up to real-time possible), ensuring your strategies remain current and effective. By staying up-to-date with the latest data, brands can make informed decisions that drive better outcomes and maintain a competitive edge in the market.

Basic Segments

Effective segmentation is crucial for targeted marketing. Predictable’s LTV Model categorizes customers into high, medium, and low LTV segments, each ready for activation:

• High LTV: Customers in the top 20% of predicted LTV
• Medium LTV: Customers in the middle 60% of predicted LTV
• Low LTV: Customers in the bottom 20% of predicted LTV

Smart Segments

Smart Segments are refined by combining model scores with customer attributes. The LTV Model powers several strategic segments, including:

• Priority Winbacks: Customers who have churned but had high LTV previously.
• Future Whales: Customers with potential for high future LTV despite a low current score.
• Fledgling Customers: Customers with low LTV but high engagement, indicating growth potential.

Real-World Applications

The segments from the LTV Model can be applied across various marketing channels, including email marketing, social media campaigns, and paid advertising. By leveraging these insights, businesses can tailor their strategies to target high-value customers more effectively, optimize their marketing spend, and ultimately enhance customer retention and profitability.

• Targeted Offers: Drive loyalty by tailoring discount and special offers based on predicted LTV.
• Re-engage High-Value Customers: Re-engage high value customers who have churned across email and paid social.
• Upsell Opportunities: Identify and target customers who are likely to respond well to upselling.
• Improve AOV: Use high the LTV segment to create lookalike seed audiences to acquire higher spenders.

Other Key Components Gained with Predictable

• Transparency: Our transparent scoring models enhance BI & Analytics capabilities.
• Scalable Analytics Without Analysts: Natural language queries make advanced analytics accessible to non-technical users.
• Cookieless Solution: Navigate data privacy concerns with a cookieless solution.
• Rapid Time to Value: Achieve results in days with zero-copy integration.
• Proven Testing Methodology: Ensure smooth implementation with a robust testing processes.

The Decision to Use Predictive Modeling

Integrating predictive AI is pivotal and should be undertaken with consideration of timing, methodology, and underlying objectives.

When to Use Predictive AI

The best time to implement predictive AI is after establishing first party data collection processes. This aligns with key growth stages such as expanding your customer base, launching new products, or entering new markets.

How to Implement Predictive AI

Ensure you have access to clean, comprehensive first party data. Predictable collaborates with partners to support data readiness and seamlessly integrates into existing systems.

Why Choose Predictive AI

Predictive AI transforms reactive strategies into proactive engagement, allowing marketers to allocate resources efficiently and maximize ROI. Predictable’s success stories demonstrate the significant impact these models can have on retention and customer lifetime value.

Conclusion

Leveraging first party data effectively can distinguish between thriving and merely surviving in today’s competitive market. Predictable’s LTV Model offers businesses a detailed understanding of their customers, enabling them to make informed, strategic decisions that drive loyalty and revenue.

Interested in revolutionizing with Predictable’s LTV Model? 

Schedule a time with one of our experts today.