Customer Lifetime Value Modeling


In 2012, Adobe ran a study across 33 billion visits from 180 online stores. What the report found is that repeat customers are a business’s most valuable and efficient sources of revenue: 

  • 40% of revenue comes from returning or repeat purchases, who represent only 8% of all visitors.
  • Marketers in the United States and Europe must bring in 5 to 7 new shoppers to equal the revenue of 1 repeat purchaser.
  • Repeat purchases account for more revenue during holiday seasons and times of slow economic growth.

But almost a decade later, companies of all types lack clarity into how to efficiently allocate marketing and sales resources.

  •  Current measurement methods aren’t giving businesses the fuel that they need to grow.
  • Excel-based formulas ignore what makes customers unique, which means that they are inaccurate and ineffective for decision-making
  • Historical data, while important, isn’t the only predictor for future performance—few businesses lack the statistical information, in-house, to monitor business outcomes with precision.

Enter Gradient’s lifetime value (LTV) modeling capabilities…

We’ve built an algorithm that outputs human-friendly, easy-to-read, and straightforward to act upon data. You can even append this information to your customer databases, making it as easy to segment customers by LTV as it is by zip code. Imagine how much this simple, smart reporting could change your business:

  • Bring confidence to your forecasting and financial planning processes
  • Create more effective, intelligent targeting capabilities
  • Improve your Facebook and Google lookalike targeting parameters
  • Create value-based segments to better prioritize your marketing spend
  • Improve customer success operations by understanding who’s powering your business
  • Surface even more high-value customers that you didn’t know existed
  • Boost overall growth outcomes

When you know who your most valuable customers are, your entire business becomes more efficient, healthier, and higher performing.