Exploring new channels to find more profitable customers

Harnessing Data to build a media plan using programmatic and focused on Customer Lifetime Value

Exploring new channels to find more profitable customers

Challenges

  • Pre lockdown, Graze was keen to explore new channels to acquire more profitable online customers and win back lapsed ones as other channels were maxed out.

  • Graze wanted a low investment test that modeled out exactly the CAC and LTV of customers acquired as a proof of concept for further investment 

 

Exploring new channels to find more profitable customers

Solution

Step 1: Analysed 3 years of customer records with gender, postcode & profitability index.

Step 2: Requested additional data fields  –sign up channel, device, DOW, TOD, active age of  customer.

Step 3: Re-analysed this data applying machine learning decision trees and built propensity and profitability index for all attributes (e.g. channel, gender, geo, device etc) 

Step 4: Built a media plan founded on all of these insights focused on audience with highest propensity to have a profitable LTV. 

Exploring new channels to find more profitable customers

Results

  • Programmatic performed on par with paid social with tight post-click and post-view window.
  • CPA post 3-4 weeks optimisation achieved the same target and demonstrated incremental volume.
  • Optimal response came from targeting females 30+ with an interest around health, staying active and healthy food.
  • The CAC to acquire customers in the second ring outside of key conurbations was 50% lower than in core conurbations.
  • Re-targeting generated significant scale, and these would have been customers otherwise lost.
Exploring new channels to find more profitable customers

Testimonial

The results we delivered for Graze proved how CvE can harness insights from data and translate these into actionable tactics in a media plan, with the advantage of not demanding high investment. Learnings can be easily reapplied into future media efforts.

 

 

Graze Account Manager at CvE

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