Matthew Kelleher, CCO, Red Eye on how AI and predictive is increasing customer lifetime value for brands like Hotel Chocolat and Travis Perkins

1. How AI and Predictive Analytics
Can Increase Customer Lifetime Value

2. Predictive Engagement
Modelling
40%
Fewer
emails sent
Revenue
increased by
25%
Retaining new and
disengaged customers to
secure their LTV
While increasing
top-line revenue
Public
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3. 3

4. People have different
understanding of
what AI is
Strong
understanding
18.9%
Becoming more
confident
18.9%
Source: eMarketer
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5. Artificial Intelligence
AI involves machines
that can perform tasks
that are characteristic
of human intelligence
but on a greater scale
Machine Learning
A process for gathering
information and analysing
data to provide learnings for
AI to be successful.
Predictive Analytics
A specific set of algorithms
that provides the likelihood
that something will happen
in the future, eg likelihood
to make a purchase.
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6. Predictive
modelling
Customer ID
& Cross-device
tracking
Orchestration
Reporting
& Analytics
DataIntegration
Personal
& Demographic
Onsite Behavioural
Data
Engagement
Data
Transactional
Data
Mobile & Device
Data
Data
APP Data
Lifestyle Data
Email
Direct Mail
Paid Social
SMS
AdWords
Web
Push
Store
Multi-channel
& Data
Segmentation
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7. Single to
Multi-Buyer
Predicting VIP’s
Customer
Churn
Allow Marketers To Accurately
Predict and Influence Lifetime Value
Prospect
Conversion
Predicting Customer
Lifetime Value
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8. Single to Multi-
purchaser Model
Unsubscribe
Model
First Purchase
Model
Lapsing
Model
27.5%
INCREASE
IN CONVERSION RATE
114.6%
INCREASE
IN SALES
8.8%AN 83.5%
INCREASE
IN SECOND
PURCHASES
(MONTH ON MONTH)
INCREASE
IN RETENTION
909.6%
INCREASE
IN TRANSACTIONS
31.05%
DECREASE
IN UNSUBSCRIBES
103.83%
INCREASE
IN REVENUE
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10. 54%
IN CUSTOMER
REDUCTION
CHURN
INCREASE ACTIVE
SEGMENT FROM
29.5% TO
RedEye Confidential
SPEND PER
CUSTOMER HAS
INCREASED
£194
65%
OVERALL VIP
SEGMENT SIZE
INCREASE BY
3.2% 5.8%
PROPORTION
OF VIP’S 2018
3.1% 1.4%
PROPORTION
OF CHURN RATE
33.5%

11. LTV as of Sept 2017
We predicted a 46%
growth In LTV over the
next 12 months
Sept 2017 Sept 2018
However we exceeded
this target by 38%
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12. By 2020, customer data platforms will power
20% of current multichannel marketing hub
deployments
By 2020, over 50% of multichannel marketers will fully
leverage multidimensional segmentation and predictive
analytics to engage with consumers, up from 35%
who did so in 2017.
Source: Gartner - Smart Hubs and Dumb Spokes12

13. Travis Perkin’s
have increased
customer value by
38%
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14. Continue the discussion… at
the picnic table!
RedEye Confidential
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Chief Commercial Officer
www.redeye.com
@redeyematthew
Matthew Kelleher
matthew.Kelleher@redeye.com