Case study: Customer Life Time Value Modelling for a Fortune 500 Consumer Tech Company

About the Client

The client is a global technology company specializing in hardware and software products for consumers as well as enterprises. The company is also a global leader in PC market

Business Context

The client historically used propensity models to analyze the likelihood of a consumer to respond to offers and purchase products. They were however not able to capitalize on niche customer segments. The core objective of this engagement was to develop a future value-based approach for allocating marketing budget. The other challenge to be addressed was to find a way to supplement existing propensity models to carve out specific target segments.

BRIDGEi2i Solution

BRIDGEi2i worked with the client to help them determine and improve the logic behind marketing budget allocation and streamline the spend allocated for campaigns targeting niche consumer segments for specific products (for example, high lifetime value customers targeted for premier products).

  • BRIDGEi2i data engineering team carried out integration of data flowing from different internal systems – retail transactions & revenue data, campaign response history, and client’s customer segments/propensity scores.
  • Data engineers then mapped all the above-mentioned internal data of active customers to 3rd party demographic data.

BRIDGEi2i’s AI Labs team created an intelligent survival model for predicting purchase at any point in the future. For those who transact, a regression model predicting the value to the client over the same time period was created. As a next step the data scientists multiplied the score from both these models to arrive at a lifetime value.

BRIDGEi2i’s AI Labs and consulting team deployed the 360 degree Watch Tower solution to help the client determine the lifetime value and score against each customer for segmentation and targeting.

Business Impact

Revenue Lift Over the Average Revenue