Becoming a data-driven organization to enhance the Customer Lifetime Value (CLV)

Mónica Sánchez
28 de February de 2023 · 11 min de lectura

Data is becoming increasingly relevant in designing products and business strategies; a data-driven organization can better connect with its customers and deliver unique experiences. 

However, while the answer lies in the data, the problem arises from the ever-increasing amount of information we collect and the difficulty in identifying which one is more relevant to activate to increase the Customer Lifetime Value (CLV) of our customers.

How can data be put into action to improve the experience and strengthen the business? A McKinsey study confirms that enhancing customer experience has increased revenue by 2-7% and profitability by 1-2%.

Digital customer acquisition has been on the rise since the pandemic. Most companies have realized the importance of this channel, the vast amount of data available on users, and the impact this information can have on their business.  

Nevertheless, to better understand their users, they first need to take ownership of the data –in every sense of the word– and thus make better decisions that consider their experience and the business.

The challenge of data collection

Under new privacy regulations, a company that wants to transform itself into a data-driven organization must ask users for their consent to be tracked by applications, to be removed from databases, and to share their data with third parties. This last condition is the fundamental pillar of online advertising strategies and is currently limiting those companies that monetize their web content with programmatic advertising.

The shift from third-party data to first-party data, which favors user privacy, also presents companies with various challenges regarding how to collect data, transform it into information, and improve CLV; among these, how to personalize without the capability of attaining tracking information.

However, this is not a challenge that companies with a first-party data strategy will face. By collecting their own data, the customer experience can be personalized without tracking data. When appropriately executed, users appreciate personalization and are willing to share their information in exchange for an enhanced experience. In fact, personalized experiences based on first-party data often surpass the effectiveness of third-party data, thereby improving CLV. As a result, server-side tracking is more accurate and valuable than pixels and their adversaries, such as ad blockers.

According to a global study by Statista, the exclusive use of first-party data to personalize customer experiences has grown from 31% to 36%. This shift has granted companies access to data they previously lacked, and as reported by BCG, ads that use first-party data yield better results. Although the amount of data managed may be smaller, the quality is higher, and the information is in the company’s own hands – a standard all companies should strive for. In short, embracing a first-party data strategy can enhance customer experiences and lead to higher CLV.

What challenges are companies facing?

Many companies still face challenges in fully harnessing the power of data, becoming a data-driven organization, and implementing user-centric strategies.

This can be due to a variety of reasons, for instance:

  • Having excessive data and not knowing what to do with it.
  • Lacking a holistic overview of customer behavioral data.
  • Working on each area as separate information silos.
  • Lacking adequate team for its analysis or being in the hands of third parties.

In addition, influenced by omnichannel strategies, the organization of information from different sources is often a concern for Marketing and Sales teams.

How to become a data-driven organization?

Becoming a data-driven organization and executing a Data in Action strategy requires owning the information, decision-making, and delivery of personalized content.

To achieve this, companies can follow a four-step work plan:

1. Unification of touchpoints or data points

By centralizing and unifying user information and interactions across all media and channels throughout the customer journey in a single data repository, companies gain a single view of each customer, enabling each team to make more informed and accurate decisions.

2. Unification of data quantity, quality, and visualization

Capturing new relevant data and integrating the existing data, campaign results, and interaction with channels and areas, including sales and support. With a complete curation and constant monitoring of the available data, having previously defined a data strategy aligned with the business objectives and a team trained in obtaining insights, consultation habits, and visualization in decision-making.

3. Data modeling for an intelligent Customer Journey

A 360º vision for creating the Customer Journey, setting KPIs, data points, channels, and technological tools that facilitate customer segmentation and audience mapping for subsequent personalization strategies and generating machine learning models to anticipate their behavior, relying on specialized metrics for each purpose.

4. Data activation to improve customer experience

Creating relevant experiences through channel and format personalization, experimenting, measuring, and optimizing the results of all actions. These results are then shared and documented to foster organizational learning.

Benefits of Data in Action

Organizations that base their strategy and decision-making on user information and data are more likely to achieve business objectives. Data in Action allows organizations to fully leverage data and benefit from: 

1. Consistent marketing

Agile marketing campaigns with the right mix of internal, external, and shared capabilities focused on impact, not channel.

2. Optimized ROI and attribution

Clearly defined KPIs that enable continuous message optimization and customer engagement throughout the entire lifecycle.

3. High-value audiences

Ability to analyze behaviors, interests, profiles and transactions across channels using 1st, 2nd, and 3rd-party data enables the activation of high-propensity segments through appropriate channels and lookalike campaigns.

4. Connected emotions and experiences

Truly connecting with the customer on a human level requires emotion and a positive experience shared throughout the entire customer-brand journey.

5. Omnichannel / “Phygital” execution

Ability to organize and optimize marketing activity across all channels to deliver aligned and consistent messages to omnichannel audiences and shared segments.

6. Aligned marketing, sales, and service

A consistent and reinforced human experience across all marketing, sales, and service touchpoints.

7. Fast and precise marketing

Effective content marketing supply chain and campaign execution enable speedy delivery of relevant, high-quality content and messages to the proper channels and segments.

8. Connected processes and technology

Connected systems and processes that make it easier for teams to deliver messages and offers to audiences, leveraging all the knowledge and data that exists about prospects and clients.

Thanks to emerging technologies, companies can access end-to-end solutions that enable them to:

  • Define a robust strategy with their own data.
  • Integrate all data sources.
  • Create a single repository.
  • Enrich data in a continuous cycle.
  • Generate data from scratch (zero-party data).
  • Eliminate the threat of cookieless.
  • Create a solid foundation of information to build machine learning algorithms and leverage the data.

How Diageo Colombia managed to activate its first-party data?

Diageo is the world leader in premium beverages, with sales in more than 180 countries and over 200 brands, including Johnnie Walker, Crown Royal, J&B, Windsor, Buchanan’s, Smirnoff, Cîroc, Ketel One, Baileys, Captain Morgan, Tanqueray, Don Julio, and Guinness.

As a mass consumer brand, their business model before the pandemic focused on manufacturing, marketing, and selling products to retail sector companies and small retail stores. However, the need to deeply understand their consumers became more prominent, and with the digital acceleration caused by the pandemic, they launched their own e-commerce website,, in 2021.

In Colombia, the digital transformation process led them to seek a partner who could assist them in better understanding their clients and consumers. Additionally, this business partner was required to help them develop a first-party data acquisition strategy, centralizing all information previously siloed or held by third parties. Multiplica provided support for this purpose.

Through collecting, integrating, and enriching 1st party data (behavioral analytics, CRM, and media) and taking ownership of the data, Diageo Colombia was able to standardize and consolidate the data collection of their digital assets, including branding sites and e-commerce. This allowed them to receive the data accurately and leverage it across multiple channels. 

All digital assets are designed with a UX that focuses on correctly capturing Personal Identifiable Information (PII) to facilitate the consumer’s data delivery process and subsequent lead generation. By conducting initial experiments and gaining insights into the characteristics of their online buyers on, the company has improved campaign performance in terms of investment, reach, and clicks.

In 2023, analytics activation will be implemented digitally and commercially, providing value for decision-making at all levels of the organization. With a strong emphasis on data enrichment and statistical modeling to increase CLV, Diageo Colombia intends to have a greater impact on consumers and customers, delivering more relevant content that caters to different tastes and interests.

“Multiplica has been a key partner in centralizing the information silos that Diageo had since the digital capacity was created. Now that the company’s data is centralized, the challenge is to generate 360-degree insights to support the business in three areas: brand building, media efficiency, and increasing sales.”  Leonardo Carrillo – Business & Digital Analytics Manager at Diageo Colombia.

Data unification allows personalizing your customers’ experience

The amount of data currently accessible is unstoppable, and the investment in big data and analytics is increasing across all industries. Ultimately, the need to become a data-driven organization will not disappear; however, each company must carefully analyze its actions to become much more aware, serious, and creative in addressing the human side of data if it truly hopes to obtain significant business benefits.

Want to learn more about how your company can initiate its data strategy? We invite you to contact Mónica Sánchez, Global Data Strategy Lead & Partner at Multiplica.

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