CLV Scoring to Lower Costs of Acquisition

Score customers and prospects with Retina’s predictive customer lifetime value. Use customer-level CLV to know what personas and segments to target for acquisition, churn, and retention.

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CLV Lead Scoring

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.

With CLV Scoring, you can continuously re-allocate acquisition budgets towards the highest-value leads and create specific incentives to convince those leads to convert.

Case Study

Problem: Over spending on lead acquisition because 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 and apply data-driven insights to update campaigns and optimize acquisition budgets.

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 acquisition dollars and reduce CAC by not pursuing low-value leads.

Increased Revenue

You can encourage high-value prospects to convert, resulting in increased average order values and revenue.

Opportunity Cost

Don’t spend the same amount on every prospect. Focus on the leads that will generate the most revenue in the long run.

How to Implement: High-value Recommendations for Marketing

  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.
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