Secrets To Scaling Your Ecommerce Brand Ep 466: Machine Learning and Data: Solving the LTV Problem for Ecommerce Brands With Tobias Konitzer, Ocurate
Everything that you've been told from CLV tech providers out there is most likely not the full story. Real-time LTV is the future of acquisition and as eCommerce brand owners, it is important to leverage machine learning to extract data analytics to understand how customers behave.
In this episode, Jordan West sits down with Tobias Konitzer to discuss the issue of the Actionability Gap in eCommerce. They talk about the limitations of LTV and the need for real-time evaluation of acquisition strategies, the challenges of using experimentation to learn recommendations that maximize revenue, and the potential of real-time LTV to revolutionize acquisition through value-based bidding.
Listen and learn in this episode!
KEY TAKEAWAYS FROM THIS EPISODE
- The "actionability gap" is the difficulty of acting on individual-level customer journey data, and it's worse than the issue of LTV.
- Real-time evaluation of all acquisition strategies is needed to close the actionability gap.
- DTC brands are disappointed in their LTV and feel like they were promised more by VCs and private equity firms.
- Real-time LTV is the future of acquisition and has the potential to revolutionize acquisition through value-based bidding.
- Technology companies need to innovate and solve LTV issues for DTC brands.
- The optimal number of customers mathematically is zero, because of non-functional unit economics.
- Machine learning and data can help solve the LTV problem and provide predictive revenue for each acquisition channel.
- Experimentation and real-time evaluation are crucial in understanding what works for customer engagement with a brand.
Recommended Tool:
Amplitude https://amplitude.com/
Today’s Guest:
Tobias Konitzer is a data and machine learning expert, specializing in understanding the impact of interventions on human behavior. With a Ph.D. in computational social science from Stanford University and experience working at Facebook Research, Tobias has built databases and companies in the targeting space. He is currently focused on privacy-first solutions and the development of a central KPI in real-time, helping B to C companies measure and evaluate their performance.
Connect and learn more about Tobias Konitzer here:
Website: https://www.ocurate.com
E-mail Address: tobi@ocurate.com
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