DATAMEX COLLEGE OF SAINT ADELINE

Gotaco Bldg. 2, 32 Mac Arthur Highway, Valenzuela, 1440 Metro Manila

Tel No. 82927536

CUSTOMER ANAYTICS

NAME: LAKANDULA, DIOMAICA E.

TOPIC: Recognizing Customer Lifetime Value

 Defining CLV (Customer Lifetime Value)

 Customer Acquisition Cost (CAC)

NAME: BAYLA, MARIFE

 CLV is comprised of 3 key components

TOPIC: Looking at best practices for CLV

 5 best practices to follow

NAME: ORILLA, MARIE FRANZ

TOPIC: Getting started with Predictive Modeling

 What is Predictive Modeling?

 Steps to create your predictive model stream

NAME: ALCANTARA, JOHN CEDRICK

TOPIC: Personalizing Cross-Sells and Upsells

 Cross-Sells and Cross-selling Strategies

 DATAMEX COLLEGE OF SAINT ADELINE
Gotaco Bldg. 2, 32 Mac Arthur Highway, Valenzuela, 1440 Metro Manila
Tel No. 82927536

NAME: SANTOS, ROSEMARIE

TOPIC: Personalizing Cross-Sells and Upsells

 Upsells and Up-selling Strategies

DATE: December 1. 2022

AY: 1ST SEMESTER (2022-2023)

 DATAMEX COLLEGE OF SAINT ADELINE
Gotaco Bldg. 2, 32 Mac Arthur Highway, Valenzuela, 1440 Metro Manila
Tel No. 82927536

Subject: CUSTOMER ANALYTICS

Course: Bachelor of Science in Office Administration

Professor: Sir. Ian Emmanuel Arsolon

Semester/Year: 1st Semester / 2nd Year College

Schedule: Tuesday/Thursday/Saturday

Topics: Chapter 3 Recognizing Customer Lifetime Value

 DATAMEX COLLEGE OF SAINT ADELINE
Gotaco Bldg. 2, 32 Mac Arthur Highway, Valenzuela, 1440 Metro Manila
Tel No. 82927536

Introduction

We gained a lot of knowledge on our topic in Customer Analytics.

We learned that the Customer Lifetime Value is important because it allows you to

maximize the value of every customer relationship. This means that you're

providing a better customer experience that keeps people around for longer, which

can also help improve the quality of your products and services. Keeping customer

loyal and helping to impact spending decisions are strong factors why loyalty

programs are influential to customers, important, and beneficial for business to

have.

Although, enhancing customer loyalty will have an impact in CLV so

does reducing acquisition costs. Acquisition cost is the simply the price you pay or

the cost you incur to acquire a new customer. It doesn’t matter how valuable a

customer might be if the customer cannot be acquire profitability. Therefore if

businesses want to last the market for a long time, should decrease customer

acquisition cost while actively enhancing customer loyalty (increasing CLV). This

magic formula will drive businesses into success, ensure longevity and appeal to
 DATAMEX COLLEGE OF SAINT ADELINE
Gotaco Bldg. 2, 32 Mac Arthur Highway, Valenzuela, 1440 Metro Manila
Tel No. 82927536
investor. Math isn’t everyone’s strong suit, but learning how to calculate lifetime

value doesn’t require high-level arithmetic.

PRESENTOR 1

Defining CLV

 CLV (Customer Lifetime Value) - is a tool used by marketers to measure the present

value of the future profit from a customer.

 It will help you to analyze the best strategy to use in retaining your customers.

Customer Lifetime Value = Average Value of Sale x Purchase frequency x Retention Time Period
 DATAMEX COLLEGE OF SAINT ADELINE
Gotaco Bldg. 2, 32 Mac Arthur Highway, Valenzuela, 1440 Metro Manila
Tel No. 82927536

Customer Acquisition Cost (CAC)

 Refers to the resources and cost incurred to acquire an additional customer.

PRESENTOR 2

CLV is comprised of 3 key components:

 Customer Acquisition Cost (CAC)

 Margin generated by the customer ( annual profit contribution per customer minus annual

retention cost per customer)

 Retention Rate

Looking at Best Practices for CLV

 DATAMEX COLLEGE OF SAINT ADELINE
Gotaco Bldg. 2, 32 Mac Arthur Highway, Valenzuela, 1440 Metro Manila
Tel No. 82927536
 5 Best Practices to Follow

1. Determine your acquisition allowance

2. Predict the best way to win the right customers

3. Predict the best way to grow customer relationships

4. Predict the best way to keep the right customers longer

5. Use predictive intelligence at every customer touch-point

PRESENTOR 3

Get Started with Predictive Modeling

What is Predictive Modeling?

 Statistical model created to best predict

 Models develop using Historical data or Purposely collected data

 Predictive analytics is used in financial services, insurance, telecommunications, retail,

travel, healthcare, sports and several other fields.

You can use these steps to create your predictive model stream:

1. Choose data sources.

2. Prepare the data, automatically extracting, transforming, and loading the data to ready it for

analysis

3. Explore the Data

 DATAMEX COLLEGE OF SAINT ADELINE
Gotaco Bldg. 2, 32 Mac Arthur Highway, Valenzuela, 1440 Metro Manila
Tel No. 82927536
4. Apply the necessary algorithms

PRESENTOR 4

Equipped with this knowledge, so you can

✓ Understand customer preferences: Stock and display items more effectively

✓ Increase basket size: More revenue per customer

✓ Propose more effective offers: Higher profit margins

✓ Target offers to web shoppers on the fly: Greater return on marketing spend

Personalizing Cross-Sells and Upsells

✓ Cross-sells: Products that are often bought together

Cross-selling Strategies:

• Offering additional products and services to a customer who has already decided

what to buy.
 DATAMEX COLLEGE OF SAINT ADELINE
Gotaco Bldg. 2, 32 Mac Arthur Highway, Valenzuela, 1440 Metro Manila
Tel No. 82927536

PRESENTOR 5

✓ Upsells: Adding additional features to an existing product or service.

Upselling Strategies:

• Product or Version Upgrade

Difference between Upselling & Cross –selling

 DATAMEX COLLEGE OF SAINT ADELINE
Gotaco Bldg. 2, 32 Mac Arthur Highway, Valenzuela, 1440 Metro Manila
Tel No. 82927536