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.
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
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%)