D E LTA R E TA I L C LV
A N A LY S I S
P R E S E N TAT I O N T I T L E
BY
TEAM ALPHA
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TA B L E O F
C
I.
O NTENT
Introduction
II. Company Overview
III. Key Concepts
IV. Problem Statement
V. Project Objective
P R E S E N TAT I O N T I T L E
VI. Methodology
VII. Analysis
VIII. Summary and Recommendation
IX. Conclusion
X. Meet the Team
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INTRODUCTION
Customer Lifetime Value
In today’s competitive retail (CLV) Analysis enables
industry, understanding and businesses to quantify the
P R E S E N TAT I O N T I T L E
maximizing the value of total value that each
customers over their entire customer contributes
relationship with a company throughout their lifetime,
is essential for sustainable guiding strategic decision-
growth and profitability. making and resource
allocation.
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C O M PA N Y O V E R V I E W
• Delta Retails is a prominent player in the retail
industry, offering a wide range of products and
services to its customers.
• They have a diverse customer base and intense
competition and they recognize the importance of
maximizing customer lifetime value to drive long-
P R E S E N TAT I O N T I T L E
term growth and profitability.
• To achieve this goal, the company is embarking on a
Customer Lifetime Value (CLV) Analysis project to
better understand the value of its customers and
develop targeted strategies to enhance customer
relationships and drive revenue growth.
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KEY CONCEPTS
Average Purchasing Value (APV) – helps businesses understand how much, on
average, each transaction is worth.
Formula: APV = Number of Transactions / Total Revenue
P R E S E N TAT I O N T I T L E
Average Purchase Frequency (APF) – measures how often, on average, customers
make a purchase over a specific period.
Formula: APF = Total Number of Customers / Total Number of Purchases
Customer Lifespan (CL) – also known as customer lifetime, refers to the total
duration a customer continues to purchase or use a company's products or services
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KEY CONCEPTS
Average Customer Lifespan (ACL) – Average Customer Lifespan (ACL) is a metric
that estimates the average duration a customer continues to purchase from a business
before becoming inactive.
Formula: ACL= Average of Lifespan
P R E S E N TAT I O N T I T L E
Customer Lifetime Value (CLV) - helps businesses understand how profitable (or
not!) a particular customer or customer segment is over their entire relationship with
your brand.
Formula: CLV = APV * APF * ACL
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PROBLEM
S TAT E M E N T
Delta Retail lacks a comprehensive
understanding of CLV and requires actionable
insights to drive strategic decision-making.
By doing so, the company will gain a deeper
P R E S E N TAT I O N T I T L E
understanding of its customer base and their
lifetime value to prioritize marketing efforts,
personalize customer experiences, and
optimize resource allocation.
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PROJECT OBJECTIVE
• Quantify the Customer Lifetime Value (CLV) for different customer segments
based on historical purchasing behavior.
• Identify key drivers and predictors of CLV to better understand customer
behavior and preferences.
P R E S E N TAT I O N T I T L E
• Develop actionable insights and strategic recommendations to enhance
customer engagement, retention, and loyalty.
• Implement data-driven marketing strategies and personalized customer
experiences to maximize long-term profitability.
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M ETHODOLOGY
Our methodology consists of the following steps:
Data extraction from SQL
Data cleaning and modeling using Power
Query/ BI
Internet Research
P R E S E N TAT I O N T I T L E
Data analysis to identify purchasing behavior
CLV Calculation using DAX
Dashboard Building using Power BI
Forecasting future spending patterns
Recommendations
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T A I L O R E D A N A LY S I S
What is the total revenue generated per customer?
What is the average purchase value (APV) per customer?
What is the average purchase frequency (APF) per customer?
What is the average customer lifespan (ACL)?
What is the Customer Lifetime Value (CLV) per customer?
P R E S E N TAT I O N T I T L E
How does CLV vary by product category?
How does CLV vary by store location?
How does CLV vary by use of promotions?
How does season affect CLV?
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T O TA L R E V E N U E A N D C U S T O M E R M E T R I C S
Total Revenue: The
P R E S E N TAT I O N T I T L E
business has generated a Total Customers: The
substantial total revenue customer base consists of
of $372.39M from 1K 1K unique customers
customers.
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AVERAGE PURCHASING, FREQUENCY AVERAGE PURCHASING VALUE
AND CUSTOMER LIFETIME VALUE
CLV: The overall
APF: On average, APV: The
P R E S E N TAT I O N T I T L E
CLV is calculated
customers make average purchase
to be $543.25M,
approximately value across all
indicating the
1046 purchases. transactions is
potential revenue
$255.023.
that can be
expected from
the existing
customers over
their lifetime.
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TOP CUSTOMER
A N A LY S I S
•The top 10 customers
contribute significantly to the
total revenue, with each
contributing close to $400M.
•The CLV for the top 10
customers is consistently
P R E S E N TAT I O N T I T L E
high, suggesting strong
customer loyalty and
significant spending.
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TOP CUSTOMER
A N A LY S I S
The CLV for the top 10
customers is consistently
high, suggesting strong
customer loyalty and
significant spending.
P R E S E N TAT I O N T I T L E
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C LV B Y S T O R E
LO C AT I O N
The CLV is fairly evenly distributed
across different store locations,
indicating a balanced customer base
across regions.
Suburban stores generate the most
P R E S E N TAT I O N T I T L E
revenue at $81.13 million, followed
by rural stores at $181.12 million
and urban stores at $181.0 million.
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C LV B Y C LV B Y P R O D U C T
PROMOTIONS USED C AT E G O RY
With Groceries at $135.99M, Home
Goods at $135.93M, Clothing at
$135.83M and Electronics at $135.50M,
we can say that the revenue from
different product categories is also
balanced, showing no single category
Interestingly, no promotions were dominates the market with.
P R E S E N TAT I O N T I T L E
used, and the CLV is $543.25M. This
could indicate strong organic loyalty
or potential for even higher CLV if
promotions are introduced.
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C LV B Y P AY M E N T M E T H O D
Overall, there is a relative balance
between the payment methods with each
contributing around $135 million.
The breakdown of CLV by payment method
reveals that cash payments generate the
P R E S E N TAT I O N T I T L E
highest CLV at $135.94 million, followed by
credit cards at $135.71 million and Mobile
payment at $135.71 million. Debit cards
have the lowest CLV at $135.68 million.
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C LV B Y S E A S O N
The CLV is
distributed
relatively evenly
across different
seasons, with slight
P R E S E N TAT I O N T I T L E
peaks in Fall and
Summer.
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DASHBOARD
19 P R E S E N TAT I O N T I T L E
DASHBOARD
20 P R E S E N TAT I O N T I T L E
Seasonal Promotions
Although CLV is evenly distributed across seasons,
R E C O M M E N D AT I O N S implementing targeted seasonal promotions could
further boost revenue during off-peak times
referrals, further increasing the customer base
company over time.
Introduce Promotions
The data shows no promotions were used.
Introduce and test various promotions to
understand their impact on customer
acquisition and retention, potentially increasing
CLV.
Leverage High Feedback Scores
P R E S E N TAT I O N T I T L E
If available, leverage positive feedback to
promote word-of-mouth marketing and
customer referrals, further increasing the
customer base.company over time.
Product Category Focus
With balanced revenue across all product
categories, maintain a diverse product range.
However, closely monitor trends to identify any
emerging category that could be further
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capitalized on.
R E C O M M E N D AT I O N S
Enhance Customer Retention
Strategies
Given the high CLV, focus on retaining top
customers by offering personalized services,
loyalty programs, and exclusive offers.
Diversify Payment Methods
Since CLV is evenly spread across payment
P R E S E N TAT I O N T I T L E
methods, continue supporting multiple
payment options to cater to diverse customer
preferences.
Geographic Expansion
The even distribution of CLV across store
locations suggests potential for geographic
expansion. Consider opening new stores in
underrepresented areas.
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MEET OUR TEAM
P R E S E N TAT I O N T I T L E
Afolashade Toyyibah Kabir Atobatele Roli Mejebi
Oluwatobi Hamza
Group Lead Group Lead Member Member
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MEET OUR TEAM
Folayemi Sunday Sadiya Ize Bello Lookmon
Oluwaseun Oloruntoba Olanrewaju
P R E S E N TAT I O N T I T L E
Member Member Member Member
Mariam Badmus Bukola Temitope Francis Vivian Atuake
Member Oluwatunbi
Member Member Member
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C O N TA C T S
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P R E S E N TAT I O N T I T L E
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T H A N K YO U !
26 P R E S E N TAT I O N T I T L E
