Analyzing Customer Retention and LTV with Looker
The Situation
A digital parking spot reservation service provider that enables customers to reserve spaces in parking lots, garages, valet, etc. wanted to understand its customer behavior by analyzing purchase trends, lifetime value of customers, and the retention of their “power users”. Merilytics (an Accordion Company) partnered with the Company to study customer purchase behavior and define the retention & lifetime periods for different customer segments. Ultimately, the goal was to understand the drivers of customer retention and synthesize these findings on a Looker BI dashboard that can be regularly refreshed.
Services
Reporting & Analytics
The Execution
- Evaluated retention and lifetime periods for each of the customer segments and categorized customers into active, resurrected, and lapsed based on the retention period and purchase frequency.
- Evaluated behavioral attributes (LTV, incentive usage, lifetime bookings, etc.) for above categories across years and customer segments.
- Built a Looker dashboard to report the trends in customer acquisition and retention, LTV trends of customer cohorts, and real-time tracking of customer status.
- Built a super-user dashboard on Looker to report the trends in the number of power users (>5 bookings in a month) and their growth and retention over time.
The Results
By implementing a statistical method of defining retention and lifetime periods, the Company was able to better understand customer behavior and identify that the impact of incentives on resurrections, revenues, and purchase rates was minimal. Merilytics’ (an Accordion Company) analysis identified key drivers of performance, enabling Management Teams to identify poor performers and proactively take action to prevent attrition. Additionally, translating the analyses to the Looker dashboard to be refreshed regularly provided the Company easy access to track various KPIs on a monthly basis .