Shipping & Supply Chain

How can you manage your supply chain during times of uncertainty? Use customer lifetime value to prioritize shipping and manage inventory.

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Product Shipping Prioritization

When COVID-19 hit, were your products flying off the shelves? Were you able to forecast your inventory needs and deliver packages on time?

For many businesses, the pandemic dramatically increased sales volume. While this was a positive outcome, supply chain activities became difficult to maintain. Inventory was dwindling and many packages were shipped and delivered late. With customer lifetime value metrics, companies were able to predict purchases with greater accuracy, prioritize shipments, and ultimately better satisfy their most valuable customer during a chaotic time.

Of course, this strategy doesn’t exclusively apply to COVID-19. Supply chain management is not an easy task at any time. Retina can simplify the forecasting process by identifying the most valuable customers and recognizing patterns in their purchasing behavior.

Case Study

Problem: You can’t keep up with product demand and don’t know how to prioritize shipping or forecast for the  future.
Retina solution: Use Retina’s eCLV to segment your customer base into groups based on lifetime value. High LTV customers should receive their shipments first.
Baseline experiment design: First, get a baseline reading on the current state of customer satisfaction for a particular product via survey. Next, run eCLV on customers who have purchased that product and prioritize their shipping based on LTV. Finally, collect customer feedback and measure the difference in customer satisfaction.
Results: You should expect to see your customer satisfaction scores to increase for the highest value customers who received their product on time.

ROI Tracking

Cost Savings

Stop spending money on first-class service to a segment of your customer population that doesn’t spend much on your products.

Increased Revenue

When your highest value customers are more satisfied with their shipments, they are more likely to purchase higher quantities of your product more frequently in the future.

Opportunity Cost

You will continue to ship in no particular order, risking angering your most valuable customers.

How to Implement

  1. Select a product to test.
  2. Score all customers who purchased that product with Retina eCLV.
  3. Segment that portion of the customer base into low, medium, and high LTV customers.
  4. Administer a customer service survey.
  5. Prioritize shipping to high, then medium, then low LTV customers.
  6. Measure change in customer service survey responses.
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