Our client needed to increase their marketing budget in order to grow their business, but didn’t have the data to know how much to invest or whether it would be profitable.
CRISP’s analytics team recommended we evaluate customer retention trends and calculate long-term customer value in order to define the value of a lead. To do that, we leveraged the client’s internal customer and transaction data to calculate the 1 and 3-year average customer value, utilizing customer cohorts based on the first service they purchased and the timing of that purchase. Our analysis revealed that even low price point services had significant long-term revenue upside, which proved they should be leveraged for lead generation initiatives. We ultimately utilized that data to guide our keyword and big strategy for the paid search campaigns we launched.
With clarity on lead value, the client was able to confidently set online advertising budgets based on specific services, which are now generating a 15x return over a 3-year time frame.