The Challenge
A US-based e-commerce player was facing declining profitability due to rising customer acquisition costs and increasing competitive pressure on pricing.
Key challenges included:
- High cost of digital marketing spend across channels
- Limited visibility into true customer lifetime value (CLV)
- Inability to optimise bids dynamically across campaigns
- Difficulty in balancing short-term acquisition costs with long-term value
The client needed a system that could continuously optimise bidding strategies based on expected customer value.
A Day in the Life: Before Our Solution
A marketing team manages multiple digital campaigns across channels.
Bids are adjusted manually or using platform defaults, often based on short-term performance metrics like clicks or conversions, without considering long-term value.
As the day progresses:
- High bids are placed on channels that drive immediate conversions but low lifetime value
- Potentially valuable customers are under-targeted due to higher acquisition costs
- Budget allocation decisions are static and slow to adapt
- Marketing spend is optimised for volume, not profitability
For the business:
- Acquisition costs continue to rise without corresponding gains in value
- Marketing budgets are inefficiently allocated across channels
- Long-term profitability is compromised
- Underused video infrastructure
- Manual tracking too slow and inconsistent
👉 The result: wasted marketing spend and missed opportunities to maximise customer lifetime value.