The Ultimate Guide to Drive Profitability Using LTV
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Real-Time LTV for value-based optimization (VBO)

Using Ocurate's real-time LTV, we have built technology to increase the ROI of Google/Facebook/TikTok acquisition campaigns by 10%+.

Over the last years, Google, Facebook, and TikTok have built out capabilities to submit different bids for each prospect via their ad APIs.

With real-time LTV, we can now leverage this technology to optimize our clients’ Google/Facebook customer acquisition campaigns on customer LTV vs. first purchase only: Value-based optimization (VBO).

Our average lift in LTV across our clients is 10%. 

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What is VBO?

VBO is technology for submitting individual bids for impressions in real time, based on customer value. This allows consumer-facing companies to acquire more valuable customers at less spend, and increase their LTV:CAC by 10%+

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What do you need VBO for?

VBO is made possible by three pieces of technology Ocurate has built:

(1) Curated streams of website behavior data related to LTV for each client, collected by Ocurate’s OcuboostTM automatically and fully anonymized 

(2) LTV predictions in real time based on this engagement and sales data with 90%+ accuracy for every individual

(3) Real-time Integration into ad APIs through the click IDs, collected by OcuboostTM

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How can Ocurate prove the ROI?

Ocurate proves ROI through a matched market test. We split part of an existing campaign that generates sufficient conversions into treatment and control arm alongside regions that perform similarly on all relevant metrics. The control is set up as an exact replica of the existing campaign, and the treatment arm will move bidding strategy and conversion action to LTV. Our KPI is the difference in LTV:CAC

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Optimize acquisition+

Optimize acquisition+

Process:

  • Ocurate identified high LTV prospects in real time
  • Tailored recommendations for first purchase (tint rinse)
  • Optimize acquisition channels
  • Tested against historic approaches

Results:

  • 96% LTV prediction accuracy during time of deployment
  • 104% Increase in ratio of high LTV customers acquired
  • > 1% Annualized revenue gain
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Optimize retention+

Optimize retention+

Process:

  • Ocurate’s LTV  insights recommended high-value customers weren’t impulse buyers
  • Segment: customers with High LTV
  • Ran A/B tests: Discount vs. Dog treat
  • Recommendation: Send dog treats two weeks after first purchase

Results:

  • 90% LTV prediction accuracy 
  • 12% Increase in LTV of High LTV customers
  • >3% Annualized revenue gain
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Optimize acquisition channels

Optimize acquisition channels

Process:

  • Use Ocurate dashboards week by week to learn what most efficient channels are based on real-time LTV
  • Redistribute resources over most efficient channels weekly
  • Rinse and repeat for two months

Results:

  • 98% LTV prediction accuracy during time of deployment
  • 19% Increase in High LTV customers
  • >13% Annualized revenue gain
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Optimize win-back campaigns

Optimize win-back campaigns

Process:

  • Build list of lapsed customers – customers who have not made a second purchase in the last six months
  • Segmented audience of lapsed customers and email subscribers by real-time LTV
  • Tested vs. control group

Results:

  • 94% LTV prediction accuracy during time of deployment
  • 75% Increase in LTV
  • 283% higher total order value
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Customers Love Ocurate

Ed Bailey
CTO, Good Clean Love

"Ocurate is paying off and will continue to over the next two quarters – and the next two years,” said Ed Bailey of Good Clean Love. “A third of my marketing budget was reallocated toward the predicted most valuable customers. The results have shown astounding ROI already. I cannot believe how much we wasted on people who never intended to buy. We couldn’t decipher who could and would be the right client for us without it."

Josh Tepper
GM, Bally's

"This is fantastic, this is exactly what I think we've been missing for a long time and it's going to help us minimize our spends, it's going to help us be more targeted in our marketing, in our partnerships, and everything else we do"

Steve Simitzis
CTO, Wild Earth

"With Ocurate, we easily identified high-value customers at risk of churn. By creating a custom campaign, we were able to reduce the churn rate of this audience by 16%. Not only were Ocurate’s predictive analytics accurate, but we were able to quickly see meaningful business impact. "

Andrew Grant
VP Growth

“I am bullish on Ocurate’s ability to help us focus on the right customer based on their superior data and AI tied to predicted value. Initial tests have shown a much smaller error in Ocurate's model compared to our existing solution.“

Increasing the number of High LTV customers is the holy grail for B2C brands

For most B2C companies, 80% of revenue is generated by only 20% of customers

Mathematically, this means High LTV customers deliver 16 times more revenue than regular customer

Acquiring more High LTV customers systematically has huge business ROI

For most consumer companies, every point increase in the High LTV rate* increases revenue by 4%+

*Rate of High LTV customers in CRM

How Ocurate increases the number of High LTV customers

Ocurate predicts real-time LTV with 90%+ accuracy validated against each brand’s customer data during deployment

Customers use real-time LTV to (1) acquire more valuable customers at less spend automatically (2) optimize all media spend and (3) understand how to increase LTV of existing customers more effectively

At the core of the solution is Ocuboost, Ocurate's custom profile of event stream data powering our AI. The result: Highly accurate AI for real-time LTV and more High LTV customers

The result: More profitable revenue, quicker

The power behind Ocurate’s solution:

Unlock Top-Line Growth by Taking Action on LTV

Acquisition

Prioritize your conversion campaigns to focus on leads who will spend the most after conversion.

Retention

With Ocurate's customer-level churn metrics, you know which customers are worth retaining and winning back and which ones are not.

Predict Lifetime Value for Every Individual

Purchase history is in the past. Your growth and success is defined by the future with predicted LTV for every customer and lead.

Lifetime Value Just Got Upgraded with Revenue Upside

All customers are valuable, but they aren't equal in how much additional revenue they can generate for you. Find out who your most valuable customers are.

Strategically Grow Your Business

You have a 50-50 chance of accurately predicting your customers’ LTV where it matters most. Are you willing to wager your company's strategy on a coin toss?  

Learn how Ocurate can equip you to make better business decisions today.

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Implementation is easy

1

Ocurate uses its pixel Ocuboost to collect event stream data and integrates with your current marketing stack via API, for example with Klaviyo, to combine all data sources

2

Once Ocurate's AI is deployed, actionable insights are available immediately

3

No black box, but transparency: If needed, dedicated scientists help you translate insights into revenue-increasing strategies

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Our team would love to hear from you!

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