Bonobos Increases Lifetime Value of its New Customers by 20%


Bonobos is a leading E-commerce-driven men’s apparel brand focused on delivering great fit, a fun approach to style, and superb customer experience. Bonobos offers a full assortment of men’s clothing and has become the largest apparel brand ever built on the web in the US. Just as their product offering has evolved, so has Bonobo’s business model, expanding offline in 2012 with the introduction of e-commerce stores, called Guideshops.

The Challenge: No Easy Access to Customer Lifetime Value

Bonobos has always been a data-driven, customer-focused retailer. As such, it has always recognized the importance of knowing and making business decisions around Customer Lifetime Value (CLV). Initially the marketing team had used Excel to compute lifetime value metrics, but as the company experienced rapid growth and its customer base grew substantially, this became prohibitively time-consuming and tedious – so the analysis was not completed as frequently as the team would have liked.

The Solution: Custora’s Predictive Lifetime Value Analysis and Customer Segmentation

Using Custora’s predictive analytics platform, Bonobos’ senior leadership and its entire marketing team have immediate access to the CLV figures of their customer base overall, as well as the CLV of 25 customer segments. One such segment is customer acquisition channel. Custora’s statistical models analyze the lifetime value of customers acquired through every marketing channel Bonobos employs to acquire new customers. The analysis allows Bonobos to understand which acquisition channels are bringing in the most valuable customers, and optimize their acquisition strategy accordingly – in terms of both budget and team resource allocation.

The Results: Customer-focused marketing and improved customer experience. Real, measurable lift.

Over the past six months, Custora’s insights into which channels are attracting Bonobos’ highest-value shoppers has helped Bonobos increase the predicted lifetime value of its new customers by 20%.

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One Kings Lane Realizes 4% Increase in Revenue by Leveraging Custora’s Predictive Lifetime Value Segmentation

OKLOne Kings Lane is a leading online destination for the home that connects daily design inspiration with a fresh collection of select home goods, designer and vintage items you won’t find anywhere else. Every day the site features more than 2,000 new home products assembled around inspirational decorating themes.

The Challenge: Waiting around for customer lifetime value

OKL is a data-driven organization dedicated towards building lasting relationships with their customers. As a result, the marketing team keeps a close eye on Customer Lifetime Value (CLV). The team was interested in segmenting customers based on lifetime value, as this would provide a way to identify segments of loyal, active customers and other segments of customers who were less engaged – with the goal of personalizing marketing communication for each customer segment to drive long-term customer engagement and loyalty.

The Solution: Custora’s Predictive Lifetime Value Analysis and API

OKL engaged Custora to leverage Custora’s proprietary lifetime value prediction algorithms. Within just days of initiating the relationship, Custora was predicting the lifetime value of every single customer – even for those customers who signed up last week.

“We use Custora’s segmentation of high-value customers in our email marketing, promotional offers, and on-site. Instead of a “one size fits all” approach, we now look at which product categories, price points and messaging work best for every customer segment”, explained Elizabeth Dobbin, Senior Director of Marketing at One Kings Lane.

The Results: More agile, personalized marketing across all channels. Real, measurable lift.

OKL was able to immediately incorporate Custora’s predictive insights into various marketing channels. As a result, they realized a 4% increase in incremental revenue.

To read the full case study and learn more about how One Kings Lane leveraged Custora, enter your email address below:

If you’re interested in learning more about Custora and how your e-commerce marketing team might be able to leverage it to improve customer acquisition and retention, you can request a demo of Custora here.