New algorithms enable marketers to predict shopper revenue and profit for marketing and customer engagement programs
SEATTLE, WA, July 19, 2022 – Retail data and analytics platform SoundCommerce, today released predictive Customer Lifetime Value (CLV) models which leverage machine learning algorithms to predict shopper revenue and bottom-line contribution profit for a brand’s marketing and customer engagement campaigns. The new functionality is available as part of SoundCommerce Campaign and SoundCommerce Customer cloud software modules. In addition to measuring CLV as a contribution margin KPI, SoundCommerce enables retail marketers to see and act on accurate views of ad spend, revenue, Return on Ad Spend (ROAS), and profit impact of acquisition and retention marketing programs.
SoundCommerce’s new functionality empowers retail marketers to measure and predict essential marketing metrics including shopper lifetime revenue (Customer Lifetime Sales – CLS) and shopper lifetime profit (Customer Lifetime Value – CLV.) With this, leading retail brands have market-leading abilities to:
- Evaluate & predict lifetime performance – Identify which digital acquisition and engagement marketing programs drive the highest CLS and CLV impact
- Set CAC and retention cost thresholds – Determine optimal Customer Acquisition Cost (CAC) and retention costs that ensure marketing efforts are profitable, through the lens of total lifetime transactions
- Analyze the lifetime value of segments and individual records – Measure the CLV and CLS of custom-built segments and individual customer records to answer questions such as “how does discounting strategy affect CLV, which products and categories drive highest CLV outcomes, and how do fulfillment and delivery latency affect CLV?”
“As retailers navigate ongoing and future market challenges ahead, visibility into the profit impact of marketing programs and actions is paramount. Optimizing decisions to revenue goals is no longer sufficient – and retailers able to optimize for profit are those who will succeed,” stated Eric Best, CEO & co-founder, SoundCommerce. “Our newest release empowers retailers with the ability to analyze past performance through the lens of lifetime revenue and profit, and better yet to predict future campaign and customer value. This is an invaluable tool for retail marketers operating in an uncertain economic environment.”
Predictive CLV is the latest addition to the company’s offering for marketers which also includes the following features:
- QueryBuilder: Empowers data exploration and activation among technical and non-technical users with a simple customer, order and product segmentation UI.
- Campaign UTM Overrides: Gives retail marketers complete control to re-categorize campaign tracking data for holistic insight into historical campaign performance.
- Flexible Dashboard Filtering: Allows business users to explore data with zero technical support.
- Data Ownership: Allows users to send modeled data to external data warehouses or layer-on a business analytics tools for greater flexibility.
- Custom Visualizations: Allows retail marketers to create visualizations that meet unique business requirements.
- Direct Access to Data: Enables technical users to write custom SQL queries against the SoundCommerce data model.
For additional information on SoundCommerce visit www.soundcommerce.com.
SoundCommerce is an end-to-end retail data and analytics platform that connects and models marketing, operations, and merchandising data so retailers can optimize order and shopper profitability across all business functions. Built for retailers of any size or complexity, SoundCommerce transforms your unique data infrastructure into an easy-to-use, no-code environment that’s accessible to everyone — no engineering degree required. With SoundCommerce, retailers have confidence that every decision and dollar drive profitable growth from first click to doorstep delivery. Founded in 2018, notable customers include: FTD Proflowers, Bed Bath & Beyond, Eddie Bauer, Bala, and Rainbow Shops.
Visit us at www.soundcommerce.com