Streamlining LTV Calculations for a prominent European Bank

Background:

The Client, a prominent European bank faced a significant challenge. Their existing process for calculating the Lifetime Value (LTV) of customers was cumbersome, manual, and reliant on tools like Excel. There were rampant time lags in updates and time loss by analysts, due to manual processes prone to mistakes.

This not only hampered the speed and efficiency of calculations but also meant they weren't leveraging  the most recent  data for accurate LTV predictions.

‍

Objective:

The bank's primary goal was to refine and automate the LTV calculation process. They aimed to ensure regular updates without manual intervention from analysts. Furthermore, the bank sought to predict the LTV for both new and existing customers using available data and obtain these predictions in real-time.

‍

Solution:

Datrics, a leading SaaS solution for no-code data analytics, was brought on board to address the above challenges.

Automation of Calculations: Datrics implemented its proprietary solution to automate LTV calculations. The onboarding process was smooth, and the bank was able to launch automated calculations within a week.

Forecasting Model: Datrics introduced a no-code forecasting model, ensuring easy maintenance by the client team. This model was complemented by an API that provided real-time LTV predictions. With Datrics' automation feature, this entire pipeline could be taken to production with a single click.

Visualization Dashboard: To ensure the bank could easily track LTV numbers, predictions, and monitor other relevant metrics, Datrics developed a comprehensive dashboard.The dashboards could be used by the retail teams and executives to update their acquisition tactics, access marketing campaign performance and optimize marketing costs

‍

Results:

The client reaped several benefits from this collaboration:

• Using Datrics, the Client could automate the routines (data aggregation and 4 Excel reports) for the Consumer/Retail unit of the bank in 3 weeks - saving 60h / week of manual work.

• Was able to implement customer LTV calculations, LTV forecasting using ML, and costs allocation and modeling for 3 product lines and 5 countries in just 5 weeks.

• Enhanced Monitoring: The bank could now monitor the efficiency and quality of LTV predictions, ensuring they were always working with the most accurate data. The resultant dashboards could be used by the retail teams to improve their acquisition activities by fine tuning the marketing campaigns and optimizing acquisition costs. 

• Complete Automation: From LTV calculations to reporting and visualization, the entire process was automated, saving time and reducing errors. 

• Integration Capabilities: The provided API allowed for seamless integration into the client’s  internal systems, such as their CRM.

‍

Conclusion:

By partnering with Datrics, the client transformed its LTV calculation process from a manual, Excel-based chore to an automated, real-time, and accurate system. This not only streamlined their operations but also provided them with more reliable data to make informed business decisions.

These changes did more than just modernize their operations; it endowed the client with a reservoir of dependable data, becoming the backbone of their informed business strategies.

Several tangible benefits emerged from this collaboration in terms of time-efficincy (up to 60h/week) and enhanced profitability insights. The rapid Implementation across Product Lines and Geographies demonstrated the scalability and adaptability of the solution

‍