Reactivation Encourage

This shows that the retail channel does generate volume , but much less value . After all, customers walk away quickly (32% churn) and the ARPU is relatively low. Based on this analysis, the telecom organization decides to focus more heavily on the telecom shop channel and its Reactivation Encourage own web shop. 8. Efficiency (LTV/CAC) We will continue to build on the case of the telecom organization. The sales department is now wildly enthusiastic about the telecom shop as a channel. The ARPU of the customers from this channel is by far the highest and the churn is only 8%.

Predictive Audience Requirement

However, an observant finance employee is not yet convinced and continues to calculate. Example of how Reactivation Encourage to put different metrics side by side – part 2. His calculation of the LTV (lifetime value) confirms the picture of sales: customers who are connect by the telecom shop Macedonia Phone Number deliver by far the highest LTV. However, the rosy picture is somewhat nuanced when the CAC (customer acquisition cost) is involved. The finance department looks at the efficiency of the channels with the following formula.

Macedonia Phone Number

How do you create predictive audiences?

Efficiency = LTV / CAC The higher this number, the more efficient the use of the acquisition euro (channel). According to finance, the conclusion is that its own webshop scores best overall, despite the fact that the churn percentage and the ARPU are less good than those of the telecom shop. Grow your subscription revenue model (fast) Is there an ‘ideal’ outcome of LTV/CAC? Some argue that this value should be somewhere between 3 and 5 . The idea is then that a ratio that is too low means that your profitability will come under pressure.

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