Beer52 aimed to improve marketing efficiency and enhance customer lifetime value. With Churney’s causal predictive decision engine, they achieved amazing results
Discovering Unique Beverages: Beer52’s Subscription Experience
Beer52 is a UK-based subscription service that offers craft beer and wine to its customers. Founded in 2013, Beer52's mission is to provide an exciting and convenient way for people to discover new and unique beverages. The ideal Beer52 customer enjoys trying new craft beers (and wines), and values the convenience of a subscription service. This implies a very long lifetime for a loyal Beer52 customer.
Churney’s value is really embedded into the core of our business. It's not a single dashboard that is occasionally accessed, but rather every person in management, marketing, and many other teams access their own relevant dashboard based on Churney’s decision engine outputs to make data-driven decisions, daily.
Co-Founder & CMO
Smart Growth: Beer52’s Strategy for Sustainable Profitability
Beer52 is committed to driving sustainable growth and profitability by strategically focusing on key business goals and KPIs. To achieve this, they’ve set out on a multi-faceted journey that addresses several crucial areas of their operations.
Improving Marketing Profitability:
Beer52 is determined to maximize the effectiveness of their marketing efforts. By increasing the Lifetime Value to Customer Acquisition Cost (LTV-to-CAC) ratio across campaigns, they aim to make every marketing dollar count.
Scaling Customer Acquisition:
Growth is at the heart of Beer52’s strategy. They plan to scale up their most successful acquisition channels and offers while reducing spend on less profitable ones. Additionally, they are focused on boosting the long-term retention rates of newly acquired customers, ensuring that their growth is both rapid and sustainable.
Enhancing Customer Lifetime Value:
Understanding the long-term value of customers is critical to Beer52’s success. By gaining insights into the future value of customers from different channels and offers, they can implement targeted strategies that increase the average lifetime value of their customer base, ensuring that every customer contributes to long-term profitability.
Empowering Data-Driven Decision Making:
In today’s data-driven world, Beer52 knows that informed decisions are the key to success. By providing their marketing team and leadership with clear, actionable insights, they will ensure that every decision is backed by data.
Through these focused efforts, Beer52 is not just growing—they’re growing smarter, ensuring that their success is sustainable for the long haul.
Balancing Profitability and Scale in Customer Acquisition
Beer52 faces the complex challenge of balancing scale and profitability while acquiring new customers and managing retention among lower-quality ones. The brand utilizes diverse user acquisition methods, sometimes running over 1,000 marketing campaigns simultaneously across various channels, including print, partnerships, collaborations, online platforms, and more.
This broad spectrum of channels means that some marketing campaigns inevitably attract customers with a lower lifetime value. To address this, the company must be able to meticulously analyze the lifetime value of customers from different channels and offers, making tough decisions to discontinue campaigns that, despite driving high initial signups, do not yield long-term value.
Optimizing Long-Term Growth with Predictive Insights
Beer52 partnered with Churney to tackle their challenges, leveraging its advanced causal predictive lifetime value (LTV) decision engine. Churney’s approach was comprehensive, offering Beer52 the insights they needed to make data-driven decisions at every stage of the customer journey.
Churney provided crucial insights by offering daily assessments of the future value of newly acquired customers, considering factors like acquisition source, initial engagement, and early behaviors. This enabled Beer52 to evaluate the long-term potential of their customers with precision, allowing them to make timely and informed decisions in their marketing efforts. As a result, they could focus their resources on the most promising opportunities while avoiding less profitable ventures.
In addition, Churney assisted Beer52 in gaining valuable insights into their retention efforts. This deeper understanding allowed them to refine their strategies, ensuring they maximized the long-term value of their customer relationships.
Finally, by democratizing data across the organization, Churney reduced the burden on analysts and empowered teams to make informed decisions, driving long-term growth and operational efficiency.
Leading the class
By partnering with Churney and leveraging its advanced causal predictive LTV decision engine, Beer52 was able to make data-driven decisions that significantly impacted their bottom line. Churney’s insights eased the workload on marketing data analysts, enabling teams across the organization to make informed decisions. These insights led to a 25% budget savings, and a 22% improvement in the future value of retained customers. These results underscore Churney’s causal predictive analytics's powerful role in driving Beer52’s long-term growth and profitability.
