Ramgopal Prajapat:

Learnings and Views

Customer Life Time Value: Questions

By: Ram on Oct 23, 2020

  1. Using the following parameter values find CLV for a customer

Average Order Value: Rs 2500,

Average Purchase Frequency: 3,

Gross Margin: 25%,

Churn Rate: 40%

 

  1. There is a set of transactions for a customer at “Easy Bazaar” Supermarket. Please find the RFM for the customer. You are doing analysis as of 1-Mar-2020.

Transaction ID

order_no

order_date

order_amount

37148

30

2/19/2020

27.5

37147

29

2/18/2020

97.5

36596

28

2/7/2020

33

36539

27

2/7/2020

25

35283

26

1/31/2020

10

34677

25

1/28/2020

24

33206

24

1/21/2020

20

28927

22

12/30/2019

10

28096

21

12/26/2019

101

27653

20

12/24/2019

21

26991

19

12/21/2019

20

26054

18

12/16/2019

10

25883

17

12/15/2019

30

25171

16

12/13/2019

10

24937

15

12/12/2019

20

24285

13

12/9/2019

10

23873

12

12/7/2019

20

 

 

  1. You are Marketing Manager at the “Analytica Kitchen” restaurant. Increasing Customer Value is a key business objective, what are the 3 key levers for you and what type of campaign will you do?

 

  1. The marketing department runs various campaigns to acquire customers. Some of the key acquisition channels are 1> Social Media Platforms 2> Affiliated Websites 3> Search Engine Marketing

What are the key customer level and aggregate metrics would you look at for reprioritize the marketing spend and why?  

 

  1. You are working as a service manager in SAAS (Software as a Service) company. And it is a subscription-based business model. You need to decide Free Service hours for your clients.  How CLTV would help you decide? What would be your approach?

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