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%.
To read the full case study and get a better understanding of how Bonobos partnered with Custora, enter your email address below: