Customer Lifetime Value (CLV) is an often misunderstood metric. Many times people will calculate this as an aggregate of the total spent by a customer with the business, relationship-to-date. This version is easy to calculate, usually an afternoon spent in excel can get you an answer. However, a forward looking approach is critical. The question is, how much MORE will this customer spend with us, as opposed to, how much DID they spend?
Customer Life Span (CLS) is often overlooked entirely. But this is the duration that a customer will be actively engaged in business with you.
As in any non-subscription/non-recurring business model, customers within the crypto ATM industry often appear to be very unpredictable in their behaviors. Namely in terms of how much and how frequently they spend, as well as how long they remain an active customer of yours. Over the years of the crypto ATM market development in the US, a lot of efforts and attention of data analysts have been dedicated to measuring all that - outlining trends, capturing insights, and developing recommendations on related enhancement.
While attempts to tame historical data were somewhat successful, using similar tools to make clear projections of how long, how much, and how frequently customers will spend in the future - by-and-large are a struggle. Either due to methodological constraints, lack of expertise, poor data quality, or any other reason - clear and reliable forecasts of how it will all evolve forward remained mainly looming.
But what if there still is a "magic" approach that would help bring light to this? How would that help manage and develop the crypto ATM business? And finally, what tangible value would it bring?
Having more than 8 years of working with businesses from the data analytics perspective, ThinkTech has developed a robust and tailorable approach to getting those estimates in a clear, accurate, and easy to comprehend manner. It is based on historical data. What really powers it is a set of comprehensive analytical calculations on top of that. The ones that delve down to the level of every single customer, take into account changes in their behaviors, their volatility and heterogeneity, and many other aspects.
This doesn’t need to be a monumental undertaking. This can be done relatively quickly and delivered within a few weeks. We can collect data such as customer’s IDs, amounts and dates of transactions, cost of sales directly from a crypto Kiosk Operators software provider - and as an output, you get the estimated time each customer, segment, or the whole current portfolio will stay with you (this day forward) and the respective monetary value (gross profit) they will gain you.
On top of that, we understand that this is not a one-off exercise, but rather highly valuable metrics that should be continuously re-estimated as the customer portfolio evolves. For that purpose, we accumulate the new data on sales, customers, and so on into a single end-to-end model supported by industry leading business intelligence analytics and visualization tools. Having all this at your disposal opens the door to numerous opportunities. Just to name a few:
More than that, seeing the future is delicious food for thought that helps motivate the team to beat the odds and define truly meaningful and effective ways to gain a competitive advantage across multiple angles - marketing, sales, customer service, technical operations, etc.
Ping me to discuss in more detail and you'll feel on your own how it may help your business boost efficiency and growth.