You’re a SaaS business. You’ve been acquiring customers and on average they’re worth about X. Somebody clever suggests a promotion, “$5 off your first order”.
You release it and boom! Conversion rates increase, the number of new customers increase. Yay, right? But then someone asks that pernicious question “are we sure these are still ‘good’ customers“?
Put simply “Is the promotion worth it?” It all boils down to the question of “given X days of customer data, how can I predict their year one revenue and at what accuracy”.
Listen to this webinar to hear from ezCater how they are answering this question with Stitch and RapidMiner. Jeff Dwyer, Software Engineering Manager at ezCater shares his keys to predicting LTV – customer lifetime value:
- Getting as much data into your warehouse as possible
- Rapidly experimenting with different machine learning techniques until you understand your data