Punchh, a leader in digital marketing solutions for physical retailers, announced the launch of “Predictive Customer Lifetime Value (PCLV).” The first solution of its kind built specifically for the physical retail world, Punchh PCLV uses machine learning to calculate the CLV of each individual customer using projected estimates of the customer’s monetary worth to the business over time.
Based on this sophisticated machine learning model, retailers can run campaigns that take into account the predictive lifetime value of any given customer, or target a group of customers within a specific PCLV range.
“Machine learning is ushering in a new phase of retail marketing where knowing your customer’s history is not good enough – you need to predict their future,” says Punchh CEO and co-founder Shyam Rao. “Simple patterns have always been an important part of retail marketing – knowing which customers come in on a Tuesday, the profile of a customer who buys one product or another—but now those are table stakes. The real power of Machine Learning is being able to predict, down to the cent, which customers are going to be worth your marketing spend.”
The first in a suite of machine learning marketing solutions, Punchh PCLV acts as a brand’s virtual data scientist, considering every data input from an individual’s past purchases to large-scale customer profiling. From the moment a customer makes their first purchase, Punchh instantly predicts their CLV, then constantly refines that prediction as the relationship between the brand and customer deepens. Based on that PCLV, retail marketers can create target segments with this data to, for example, encourage high CLV segments to enroll in rewards programs while offering low CLV segments incentives through coupons.
Punchh is the only unified marketing platform for both customer acquisition and lifetime value growth. By integrating with existing point-of-sale and online ordering systems, Punchh collects online and in-store data to generate a complete picture of both digitally known and anonymous guests.
Punchh is now being used by more than 65,000 physical retail locations across the globe to serve more than 70 million consumers. Mobile referrals through Punchh generate a 60 percent higher customer lifetime value than when they come through any other channel.