This document analyzes customer lifetime value (CLV) for Unilever, a transnational consumer goods company. It identifies three target customer segments based on spending behaviors: Mobile Window Shoppers, Young Prudent Shoppers, and Mobile Cash Cows. For each segment, the document analyzes current CLV, retention rates, and spending on Unilever products. It then provides marketing recommendations to increase activation rates, spending amounts, and CLV for each segment, projecting a total 17.54% increase in CLV across all three target segments.

1. Customer Lifetime Value
Unilever
YUNQI ZHANG & PEIYUAN SHAO

2. Agenda
● Overview
● Lifetime Value Analysis
● Target Segments Analysis & Marketing Recommendations
● Expected Financial Result

3.  Dutch-British
Transnational
CPG company
 Products
include food,
beverages,
cleaning
agents and
personal care
products
Overview-Unilever

4. Overview-Methodology
Step 1
Step 4
Step 3
Step 2
Step 5
Extract data of
Unilever buyers
from the whole
dataset and
segmented dataset
Calculate Lifetime
Value of all Unilever
customers and
target segments
customers
Analyze and identify
key insights in
target segments
Making Marketing
recommendations
to enhance
customer value in
target segments
We estimate that
we can achieve an
increase in LTV

5. 65.91%
34.09%
Unilever Customers Percentage
Unilever customers
52.34%
13.55%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
P0 P1
Retention / Activation Rate
Period: 30 days Discount rate:
15% annually
Lifetime
Value
$10.1
7
( 12
periods )
Overview-Customers
First Period: April, 2013
Target Period: May, 2013

6. Overview-Target Segments

7. $29.89
14.02
24.54
49.07
0
10
20
30
40
50
60
Mobile Window Shopper Young Prudent Shoppers Young mobile cash cow
Spending on Uniliver
2.00% 2.07%
1.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
Mobile Window
Shopper
Young Prudent
Shoppers
Young mobile cash cow
% of purchase on Uniliver over total
Spending
1.82%
Unilever Spending vs. Total Spending

8. 3.97
8.71
17.54
0
2
4
6
8
10
12
14
16
18
20
Mobile Window Shopper Young Prudent Shoppers Young mobile cash cow
Unilever CLV
$10.17
Lifetime Value Analysis: Unilever vs. Total
254.8
496.73
1277.59
0
200
400
600
800
1000
1200
1400
mobile window shopper young prudent shopper young mobile cash cow
Total Spending CLV
$712.93

9. Lifetime Value Analysis: Unilever Products
44
151
776
546
828
1775
0 500 1000 1500 2000
mobile window shopper
young prudent shopper
young mobile cash cow
customer # in the beginning customer # after 12 periods
70
321
1904
0
200
400
600
800
1000
1200
1400
1600
1800
2000
mobile window
shopper
young prudent
shopper
young mobile cash
cow
Profit after 12 periods ($)

10. Mobile Window Shoppers
 Spend long time on mobile devices
 Don’t like discounts
 Monetary: $4.59
52.0%
48.0%
Unilever
47.25 yrs
$76202.57
40% single
3.97
8.71
17.54
0
5
10
15
20
Mobile Window
Shopper
Young Prudent
Shoppers
Young mobile
cash cow
$10.17
28.94%
6.26%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
P0 P1
Retention / Activation Rate
3740

11. “ Try it, Buy it ”
“ We see, but we don’t buy”
Motivate them!
Increase Activation Rate to 10%
Increase Customer # to 4000
Higher CLV
 Subscribed free trails to encourage them to
close the transactions
Mobile Window Shoppers

12. Young Prudent Shoppers
 Not very rich
 Driven by price: discount lovers & strategic savers
 Monetary: $6.18
66.5%
33.5%
Unilever
41.91 yrs
$70247.97
42% high school
3.97
8.71
17.54
0
5
10
15
20
Mobile Window
Shopper
Young Prudent
Shoppers
Young mobile
cash cow
$10.17
49.88%
11.16%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
P0 P1
Retention / Activation Rate3606

13. “ Discount Today”
 Daily discount recommendation e-newsletter
 Timely special deal recommendation“ No Sales, No Buy”
Attract Them!
Increase monetary to $8
Higher CLV
Young Prudent Shoppers

14. Mobile Cash Cow
 Prefer PC & Mobile devices
 Strategic Savers
 Monetary: $7.12
90.6%
9.4%
Unilever
39.52 yrs
$82107.12
75%
98%
3.97
8.71
17.54
0
5
10
15
20
Mobile Window
Shopper
Young Prudent
Shoppers
Young mobile
cash cow
$10.17
64.17%
27.82%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
P0 P1
Retention / Activation Rate
4027

15. “Dash Button”“ We love your products &
Convenience makes us happy”
Keep them!
2.00% 2.07%
1.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
Mobile Window
Shopper
Young Prudent
Shoppers
Young mobile cash
cow
% of purchase on Unilever over total Spending
1.82%
Keep Retention Rate
Increase Monetary to $8
Maintain CLV
 Provide great convenience with
easy Order Online with “Dash
Button”
Mobile Cash Cow

16. Expected Financial Impact
Current Customers: increase activation rate to 10%
New Customers: bring 260 customers
Boost $2536.2 LTV for the segment
(increase 17.08%)
Increase monetary from $6.18 to $8
Boost $9267.42 LTV for the segment
(increase 29.5%)
Increase monetary from $7.12 to $8
Boost $8698.32 LTV for the segment
(increase 12.31%)
Boost $20501.94
LTV for 3 segments
(increase 17.54%)

17. Thank You!
Any questions?

18. Appendix: Overall Customers

19. Appendix: Mobile Window Shopper

20. Appendix: Young Prudent Shopper

21. Appendix: Mobile Cash Cow

22. Appendix: Financial Result
Mobile Window Shoppers
Young Prudent Shoppers
Mobile Cash Cow