Lead Scoring with Customer Lifetime Value

Score incoming leads with Retina early customer lifetime value. Use customer-level CLV to adjust acquisition campaign budgets in real-time.

CLV Lead Scores

You are probably already attempting to segment leads by their potential value and adjusting your CAC accordingly. Maybe you’re trying to determine a prospect’s potential value based on website behavior, referrals, or UTM parameters. But those methods are fairly rudimentary.

What if you could know the value of every lead? This is where Retina’s early CLV model comes into play.

Early CLV, or eCLV, can predict a lead’s lifetime value even before they make their first purchase. Not only are these lifetime values available at the individual level, they can also be updated on a weekly or even daily basis. As such, clients can continuously re-allocate CAC dollars towards the highest value leads and create specific incentives to convince those leads to convert.

Case Study

Problem: You aren’t sure which leads are going to yield the highest value over their lifetime.
Retina solution: Use Retina eCLV scores to predict lead LTVs on a weekly basis and make updates to campaign spend.

Baseline campaign design: Measure baseline average ROAS across all campaigns. Next, pick one campaign to test. Continuously score leads and update CPAs accordingly. After a month, compare this campaign’s ROAS to average ROAS.
Results: You should generate a much higher ROAS on the campaign that was optimized using eCLV.

ROI Tracking

Cost Savings

You can avoid wasting CAC dollars pursuing low-value leads.

Increased Revenue

You can encourage high-value prospects to convert, thereby increasing average order values and revenue.

Opportunity Cost

You could spend the same amount on every prospect, rather than the leads that will generate the most revenue in the long run.

How to Implement

  1. Calculate average ROAS.
  2. Pick a campaign to test.
  3. Score all leads using eCLV.
  4. Adjust CPAs to favor high-value leads.
  5. Re-run eCLV lead scores weekly and continue updating CPAs.
  6. Measure ROAS of test campaign after 1 month.
  7. If test produces better ROAS, apply method to all campaigns.