Benefits & Results

Enabled strategic use cases like Subscriber Retention, Cross-Selling, and Upselling; Enhanced marketing strategies to convert new subscribers into high-value customers; Increased retention rates and revenue through targeted campaigns

Increased first-year retention by 27%
Increased average revenue per user by 9%

Background

The Economist is a globally recognized media company, renowned for its insightful analysis and in-depth coverage of world events, politics, and business. With a commitment to data-driven journalism, The Economist continuously seeks innovative strategies to enhance customer retention, optimize marketing spend, and improve overall financial performance.

Challenges

Issue Identification: The Economist faced challenges in increasing Customer Lifetime Value (CLV) despite recognizing its strategic importance. They lacked expertise to leverage existing data platform capabilities to conceptualize and implement a CLV model.

Issue Impact: Inefficient allocation of marketing resources, high operational costs, and suboptimal retention strategies led to missed revenue opportunities and lower profitability. The inability to identify high-value customers hindered long-term growth.

Solution

NowVertical implemented a comprehensive CLV solution involving a data science model for customer segmentation and calculating expected customer tenure. We developed an input data pipeline to run the model, calculating CLV as the projected revenue across the predicted customer tenure. Additionally, we generated key performance indicators like contribution and ROAS (Return on Acquisition Spend).

Implementation

Discovery: Conducted sessions with Acquisition, Retention, and Finance Teams to define attributes for calculating CLV.
Data Science: Developed a Machine Learning Model using historical data to predict customer tenure and compute CLV
Reporting: Generated KPIs such as ARPS, CAC, Contribution, and ROAS to inform strategic decisions.