Overview

The Simon Predict Product Lifetime Value (LTV) Model predicts how much customers will spend on your brand so you can invest in customers more likely to purchase or nurture lower LTV groups into higher ones driving more engagement. The model considers the last 365 days of purchases, email clicks or triggered web events.

Some ways you can use this model are to:

Identify customers with high lifetime value and structure Google/Facebook ad platforms to find lookalikes
Increase bids for generic keywords for customers with high expected revenue
Exclude customers with low expected revenue from video campaigns
Adjust bids in programmatic campaigns to gain more loyal customers
Measure the LTV of newly acquired customers and adjust cost per acquisition accordingly in your media strategy
Reduce programmatic media cap for low-LTV customers to save cost, while increasing programmatic investment on high-LTV lookalike audiences to maximize revenue potential

Future Revenue is an output of the Lifetime Value model summing historical and future revenue.

The Lifetime Value Model is retrained monthly.

Lifetime Value Scores and Groups

The LTV model gives you multiples scores and groups you can segment off of including:

Current LTV: all spend prior to score date
Future Revenue Group : A score indicating likelihood for future revenue
- Low: less than 25% chance
- Medium: greater than 25% and less than 75%
- High: great than 75% and less than 90%
- Super: greater than 90%
Future Revenue Percentile: customer's future spend rank (88th, 50th, etc).
Predicted Future Revenue: how much a customer will spend in future
Predicted LTV: sum of current LTV and Predicted Future Revenue

Where can I find Lifetime Value and Future Revenue?

Create a Segment.
From the properties drop-down, select a Predict LTV or Future Revenue property.

What do I do with Lifetime Value and Future Revenue?

Your account manager will let you know when your models are trained, and your Simon Predict dataset is available. As soon as that's done, you can create content blocks and campaigns that leverage the model.