At Aventus, we believe your success is our success and we support our clients at any point in the process of running your business whether it be branding, back office items, or scaling. Aventus talent is what makes us unique and differentiates our services from others. We have demonstrated over and over again how our talent has increased profits and growth for our clients. Below is a strategic plan that was implemented and executed for a top company.
A leading national CBD Company faced challenges regarding the effectiveness of its customer contact strategy. Throughout 2018, they relied on an email retargeting campaign to prioritize marketing communications to high-value customers. But this approach was soon abandoned, as it found customers were calling in more frequently to confirm the price points, and their existing agents were unable and unaware of how to speak intelligently about the brand, CBD, and nuanced price points offered to customers across a suite of CBD products. The firm moved its customer contact to Aventus. As an alternative, a CLV-based strategy was considered for engaging customers. In this regard, the following business challenges were identified:
- Which customers to select for targeting?
- Is there a way to better engage with the customer via the phone?
- How can the selected customers be nurtured in order to increase future profitability?
Using data pertaining to Aventus’ CBD focused clients, a customer lifetime value (CLV) management framework was proposed and implemented in two stages. In the first stage, several training models were developed to generate best practices for implementation. In the second stage, a field study was conducted based on the conversions from the models developed in the first stage. The CLV management framework is intended to guide the marketing activity directed towards customers each month.
How it works:
Stage 1 of the CLV framework comprised of the following 4 phases.
Defined, and developed a model to measure phone conversions for each customer
Conducted a prediction exercise to compare the performance of agent’s rank ordered based on the traditionally used metrics with that of CBD campaigns.
To maximize CLV, an optimal contact strategy was developed to allocate communication resources (i.e., agent availability, email, and direct mail) to each customer.
Propensity models were built for each product category to identify the product to feature in addition to the CLV measure which helps to select the customers for targeting, and the optimization process which suggests the contact strategy.
The results revealed that, on average, the revenue from the customers who were able to quickly connect with an Aventus Agent could be closed at a high frequency and improve the CLV of their customer base as a whole.