Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Calculating Customer Lifetime 
Value – From Analysis to Loyalty
• Traffic acquisition 
• Sales targeting and 
costing 
• Re-marketing efforts 
• Customer support focus 
• Product decisio...
Roadmap 
• Where to start understanding loyalty 
• How to perform basic cohort analysis 
• Simple ways to predict LTV bett...
Who We are 
Al Ghorai 
VP of Finance, Planning and 
Analytics, thredUp 
Colin Zima 
Chief Analytics Officer, 
Looker
About thredUp 
thredUP is the nation’s leading (r)ecommerce marketplace for buying and 
selling the highest-quality used w...
About Looker 
Looker is a data exploration solution 
that operates in the database 
to enable anyone across an organizatio...
Some of Looker’s Customers
Understanding Customer Loyalty
Finding Deeper Loyalty Signals
thredUp Loyalty Signal 
50% 
45% 
40% 
35% 
30% 
25% 
20% 
15% 
10% 
5% 
0% 
2014 Users By Purchased Gender 
Womens Kids M...
More thredUp Loyalty Signals
LTV With Cohort Analysis 
Is there implied future value?
Examining Trends in Cohorts
Engagement Metric 
3500 
3000 
2500 
2000 
1500 
1000 
500 
100% 
80% 
60% 
40% 
20% 
0% 
Engagement Rates of Users with 2...
tU TV Campaign 
Orders / User 
103% 
113% 
160% 
140% 
120% 
100% 
80% 
60% 
40% 
20% 
0% 
pre campaign campaign 
control ...
Model Improvements
Controlling For Costs
Measure at the Widget Level 
gross revenue $10.00 
returns ($2.00) 
discounts ($1.00) 
other revenue $0.50 
cash $7.50 
ma...
Estimating Virality 
When 100 customers is more than 100 customers
Why Does This All Matter? 
• Driving users towards inflection points 
– How can product create “better” users 
• Smarter m...
Questions
See for yourself. Looker.com/request-demo 
Get a demo.
Thank You 
Al Ghorai al@thredup.com 
Colin Zima colin@looker.com
Upcoming SlideShare
Loading in …5
×

Calculating Customer Lifetime Value: From Analysis to Loyalty

3,823 views

Published on

Understanding customer lifetime value (LTV) is one of the most complex and important analyses a business can tackle. Every part of your organization affects the outcome of the calculation: acquisition costs, revenue, customer service, and returns.

Learn about:
- Calculating customer lifetime spend. How can you measure customers who've purchased and their distribution of lifetime purchases over time.
- Real-world decisions based on lifetime value. How can you use LTV data to focus marketing and drive repeat purchases?
- Modern web-based analytics tools. What tools can help you foster collaboration, explore data in greater depth, and ensure cross-company use of data to drive smarter growth?

Published in: Data & Analytics
  • Be the first to comment

Calculating Customer Lifetime Value: From Analysis to Loyalty

  1. 1. Calculating Customer Lifetime Value – From Analysis to Loyalty
  2. 2. • Traffic acquisition • Sales targeting and costing • Re-marketing efforts • Customer support focus • Product decision making Customer lifetime value sits at the center of every important business decision.
  3. 3. Roadmap • Where to start understanding loyalty • How to perform basic cohort analysis • Simple ways to predict LTV better • Extensions and improvements to your model • Applications across the business • Q & A
  4. 4. Who We are Al Ghorai VP of Finance, Planning and Analytics, thredUp Colin Zima Chief Analytics Officer, Looker
  5. 5. About thredUp thredUP is the nation’s leading (r)ecommerce marketplace for buying and selling the highest-quality used women’s and kids clothing. We are reinventing the way consumers shed old clothing and shop for clothing online.
  6. 6. About Looker Looker is a data exploration solution that operates in the database to enable anyone across an organization to explore data in all its detail.
  7. 7. Some of Looker’s Customers
  8. 8. Understanding Customer Loyalty
  9. 9. Finding Deeper Loyalty Signals
  10. 10. thredUp Loyalty Signal 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2014 Users By Purchased Gender Womens Kids Mixed
  11. 11. More thredUp Loyalty Signals
  12. 12. LTV With Cohort Analysis Is there implied future value?
  13. 13. Examining Trends in Cohorts
  14. 14. Engagement Metric 3500 3000 2500 2000 1500 1000 500 100% 80% 60% 40% 20% 0% Engagement Rates of Users with 2+ Purchases jul aug 0 Engagement Profile by Cohort Dead Lost At Risk Engaged Uber Engaged
  15. 15. tU TV Campaign Orders / User 103% 113% 160% 140% 120% 100% 80% 60% 40% 20% 0% pre campaign campaign control target 104% Rev / User 146% 160% 140% 120% 100% 80% 60% 40% 20% 0% pre campaign campaign control target 10% lift in order rate from users in campaign 40% lift in revenue over same campaign
  16. 16. Model Improvements
  17. 17. Controlling For Costs
  18. 18. Measure at the Widget Level gross revenue $10.00 returns ($2.00) discounts ($1.00) other revenue $0.50 cash $7.50 material cogs $2.00 labor $1.50 other cogs $0.75 cogs $4.25 profit $3.25 Every point along the P&L is an opportunity to differentiate a user Isn’t this the real measure of a customer?
  19. 19. Estimating Virality When 100 customers is more than 100 customers
  20. 20. Why Does This All Matter? • Driving users towards inflection points – How can product create “better” users • Smarter marketing spend – What channels have the highest value users – What can we pay to re-engage a user • Cultivating support for better users – Focus time on your most valuable customers
  21. 21. Questions
  22. 22. See for yourself. Looker.com/request-demo Get a demo.
  23. 23. Thank You Al Ghorai al@thredup.com Colin Zima colin@looker.com

×