Podcast

Learn from Fast Growing 7-8 Figure Online Retailers and eCommerce Experts

EPISODE 218 35 mins

Predicted Customer Lifetime Value – Best-Kept Secret in eCommerce

Posted on 21st November 2019 ,
by Kunle Campbell


About the guests

Michael Greenberg

Kunle Campbell

Retina CEO Michael Greenberg is young and driven. He has already sold his first startup, Scale Funder, which was acquired by Summit Partners in 2014. He also spent two years as the Director of Innovation and Strategic Initiatives at UCLA where his grasp on cutting edge technology and trends set him apart.



In this episode, Kunle shares the mic with Michael Greenberg, the founder, and CEO of Retina, a company that brings the power of artificial intelligence and machine learning to the single most valuable metric for marketers: customer lifetime value (CLV). Listen as Michael shares what metrics you should be looking at in terms of CLV and what you might be doing wrong with how you’re currently marketing your business.

Covered Topics:

  • About Retina and What They Do
  • Customer Lifetime Value
  • The BIG Secret You Should Know
  • The Next Thing After Customer Identity Resolution
  • Forecasting Churns
  • More About Retina and Their Integrations
  • Focusing on Customer Retention

Podcast Show Notes:

  • 01:30 – Get The Ultimate Guide for Crushing Holiday Revenue Targets at Klaviyo
  • 02:50 – Join the 2xEcommerce Facebook Group
  • 04:16 – Today’s Guest: Michael Greenberg
    • How Retina was founded
  • 06:41 – Your Customer Lifetime Value
    • Most equations fail when it comes to CLV
    • From averages to individual CLV
  • 08:20 – Michael drops the BIG Secret
    • Shopify store owners need just 3 things
    • Recency, Frequency, and Magnitude
    • Buy ‘Til You Die Models
    • Tracking Customer Identity Resolution
  • 13:16 – After Customer Identity Resolution
    • Storing data & using a clustered algorithm
  • 15:40 – How Retina’s algorithm forecasts churn
  • 16:57 – Michael drops what other businesses can’t
  • 18:39 – Using data from Retina for Facebook
  • 21:44 – How Retina works with people using Magento
  • 21:35 – Building integrations with customer experience platforms
  • 26:38 – Michael’s tip to business focusing on retention
    • Look at the ratio of Customer Acquisition to Lifetime Value
  • 28:55 – Healthy Retention Rates
    • Michael recommends looking at Taft for their retention strategy
  • 32:13 – The Lightning Round
    • Are you a morning person? — “No”
    • What’s your daily morning routine? — “Usually, I take a cold brew and start looking at emails on my way to the shower”
    • What advice would you give yourself 5 years ago? — “Don’t sell that company, it’s going to be worth more in a year”
    • What 2 things you can’t live without? — “Being able to work with really smart people and being able to go after big ideas”
    • What book are you reading and are you going to finish it? — “Influence…and I’m definitely going to finish it”

Topic Takeaways:

  • Today, it’s important to start looking at individual customer lifetime value rather than just the averages in your metrics.
  • Tracking customer identity resolution is critical in marketing.
  • Losing 20% per quarter is a healthy retention rate.

Tweetable Quotes:

You have to stop paying attention to customer acquisition and start looking at the ratio of customer acquisition to lifetime value.


 

Facebook Group • Continue the Conversation

The eCommerce GrowthAccelerator Mastermind Facebook Group has just launched.
It is a community…

✔️ for founders and experts passionately involved in eCommerce
✔️ for the truly ambitious wanting to make an impact in the markets they serve
✔️ for those willing and open to help and share with other members

Here is where to apply to join the Facebook group
>>http://bit.ly/ecommercefb<<

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SPONSORS:

This episode is brought to you by:

Klaviyo

This episode is brought to you by Klaviyo

If you’re looking to grow your business there is only one way—by building real, quality, customer relationships. Most marketing software will claim they do this, but will never deliver on their promises. You need to demand more from your marketing software that’s where Klaviyo comes in. Klaviyo helps you build meaningful customer relationships by listening and understanding cues from your customers, allowing you to easily turn that information into valuable marketing messages.

That’s why 10,000 innovative brands have switched to Klaviyo.
What’s their secret to building customer relationships? Tune into Klaviyo’s Beyond Black Friday docu-series to find out and unlock marketing strategies you can use to keep the momentum going year-round. Just head on over to klaviyo.com/2x for more.


About the host:

Kunle Campbell

An ecommerce advisor to ambitious, agile online retailers and funded ecommerce startups seeking exponentially sales growth through scalable customer acquisition, retention, conversion optimisation, product/market fit optimisation and customer referrals.

Learn from eCommerce Entrepreneurs & Marketing Experts


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