Customer Lifetime Value Segments

Customer Lifetime Value score segmentation is a module that classifies customers based on their level of loyalty.

1. Introduction

The Customer Lifetime Value module is used basically to divide all the customer's databases to form groups based on their loyalty in terms of purchasing products.

2. Basic vs. scoring

It is important to consider that there are two ways of analyzing the CLV Segments, the basic and the Scoring.

The main difference between the Basic CLV Segments and the Scoring CLV Segments is the number of groups of customers that are made with calculating the predictive models. Basically, this allows making a more accurate personalization for the desired campaign and adapting better to the impacted target.

Basic CLV Segments:

The basic segmentation classifies the customers into 5 groups, from best to worst: Top Outlier, High, Medium, Low and Inactive. The CLV score predictive model is the one prepared to do this grouping with its calculations.

This image shows the graphs related to the Basic CLV Segments.

Scoring CLV Segments:

This module classifies customers based on their level of loyalty into 12 groups, from best to worst. Normally, the best customers are located at the top of the table.

Another difference from the Basic Scoring is that for this calculation not only the monetary value is taken into account but it also considers other variables such as recency.

This image shows the graphs related to the Scoring CLV Segments. This type of segmentation, instead of having just 5 groups of customers, analyzes the level of loyalty of 12 different groups, organized from most to less loyal.

3. Data visualization

This section of the platform allows having a more visual knowledge of the information based on all the important aspects of the segmentation and to understand better how the properties of each group of customers affect the campaigns.

1. CLV Segmentation

As it is shown in the previous section, CLV Segmentation allows seeing the different customer groups organized by its loyalty. Based on if it is Scoring or Basic you can have a more or less detailed segmentation of the customers.

The information is not only found in graphics (as it is seen above) but also shows a detailed table with the main KPIs that allows dividing each group whit the most remarkable information.

To find more information about the KPIs: Overview Information.

2. Executive summary (Scoring)

The executive summary shows an overview of the results. It provides overall results, lifecycle, recency, frequency, monetary value and acceptance of the GDPR, obtained from each of the CLV segments analysed.

3. Global CLV Score Data

This section shows the global statistics on the main KPIs: the number of customers, total spending, number of tickets, and average ticket. The value shows the result for each segment based on the Customer Lifetime Value score.

This information includes all customer data history. To see the evolution of consumption you can enter the details of each segment or use the comparator. Remember to create a segment for each group of CLVs you want to compare.

There is also a table that presents a summary of the information used for the results shown in the graphics.

To find more information about the KPIs: Overview Information.

To find more information about the CLV Comparator: Segments Comparator.

4. RFM / KPIs

The following graph shows the average of the RFM values for each of the segments based on the Customer Lifetime Value score.

The recency refers to the number of days since the last purchase, the frequency represents the number of tickets per customer and the monetary represents the total revenue.

This section is based on the results of the CLV Scoring Segments.

The results presented in the previous graphics are also in a summary table showing the evaluated data.

5. Customers Lifecycle

These graphics show the average values of Lifetime value (LTV) and the days between purchases (TBP).

The results are also presented in the following table.

6. Commercial Communications (GDPR)

This graphic shows the volume of customers who have agreed to receive commercial communications according to the classification by Customer Lifetime Value.

It is very important that this information is ingested in the subscribed field of the client as you can only send commercial communications to those customers and registries that have agreed to receive commercial communications.

The data used in the previous graph is found below in a table format so it can be easily recognized with the corresponding values.

7. Revenue Contributions

The information presented in the graphic shows the percentage comparison between the volume of customers and the weight in the billing of each segment based on Customer Lifetime Value.

On the left, there are the percentages of customers for each segment. On the right, there is the percentage of the total billing weight.

The data evaluated in this graphics is shown in the following table.