Please note: this feature is currently in closed beta.

Future Value predicts revenue expected in the next 12 months (comprised of 26 iterations if configured bi-weekly, or 12 iterations if configured monthly).

This article will review how to use the Future Value attributes to help you personalize campaigns based on how much customers are predicted to spend throughout their journey with your brand.

Introduction

Understanding each customer's future predicted revenues is a powerful tool for targeting, helping you identify and prioritize your most valuable customers.

With the Future Value prediction, you will be able to:

Identify your most valuable customers
Gain insight into the characteristics of valuable customers
Strategically allocate marketing spend

You can either use our out-of-the-box prediction categories or additional Customer Attributes including:

Future Value Score
Rank in Future Value
Rank in LCS of Future Value

How to Use

The Future Value Prediction model can be used to define and explore target groups.

Start by creating a Target Group from Customer Explorer or the Target Groups page.
When selecting your Target Group criteria, click on the ‘Future Value Prediction’ criterion.
Select segments from Highest to Lowest you want to target.

The Future Value attribute uses a machine learning model to rank customers based on their predicted Future Value. Optimove then segments customers according to this ranking with 5 categories: Highest, High, Medium, Low, and Lowest.

You can choose more than one category. For example, select the Highest and High categories to segment customers with the highest predicted Future Value.

The Future Value prediction model runs for all lifecycle stages, not including dormant. It is updated on a configurable schedule. If set to bi-weekly, it runs 26 iterations per year. If set to monthly, it runs 12 iterations per year.

Understanding the Prediction Categories

Customers are then split based on percentiles which ranks each customer based on their Future Value prediction. For example, if you are in the 90^th percentile, you ranked higher than 90% of customers in terms of your Future Value prediction.

Each category from Highest – Lowest represents a percentile:

Highest (Top 1%): This category includes customers who fall in the 99th percentile, meaning they rank higher than 99% of all customers.
High (Next 9%): Customers in this group are in the 90th to 98th percentiles. The Highest and High categories therefore represent the top 10% of customers.
Medium (Next 20%): This segment includes customers in the 70th to 89th percentiles. These customers rank higher than 70% to 89% of other customers
Low (Next 20%): Customers in this category fall within the 50th to 69th percentiles, ranking higher than 50% to 69% of other customers
Lowest (Bottom 50%): This group comprises customers in the 1st to 49th percentiles. They rank lower than 50% of all customers and have the lowest predicted Future Value.

You can then see next to each category the Future Value of customers in this group. In the example below, customers in the Highest group have a Future Value Prediction of $1,597-$16,994

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Using Additional Attributes

Future Value Score

This attribute allows you to segment customers based on their Future Value. You can also adjust the value range to define the segments the way you want.

For example:

“Future Value Score >= $80” will segment customers with a future value of bigger or equal than $80.

Rank in Future Value

This attribute allows you to segment customers using percentiles, allowing you to create a group of customers with a similar Future Value Prediction compared to the other groups from the same set of customers.

For example:

“Rank in Future Value = 100” will segment customers in the top 1% meaning they have the highest Future Value
“Rank in Future Value >= 80” will segment customers in the top 20% in terms of their Future Value

Rank in LCS of Future Value

This attribute allows you to segment customers based on percentiles within each lifecycle stage.

When using “Rank in Future Value”, you may find that all customers in the top 1% are in the Active lifecycle stage. Therefore, you can use this attribute to make sure you are targeting customers that have the highest Future Value within their respective lifecycle stages.

For example:

“Rank in LCS of Future Value = 100” will segment customers in the top 1% within the ‘New’ lifecycle stage, top 1% within the ‘Active’ lifecycle stage, top 1% within the ‘Churn’ lifecycle stage and so forth.

Use Cases

Enhancing Customer Loyalty Programs

Leverage the Future Value metric to refine your loyalty programs by focusing on customers who are predicted to bring in the most value. By identifying these customers early, you can proactively engage them with personalized offers and experiences that encourage deeper loyalty and sustained engagement.

Optimizing Marketing Spend

The Future Value prediction also enables you to optimize your marketing spend by focusing your resources where they will have the most significant impact. By segmenting customers based on their predicted Future Value, you can allocate more of your budget to high-potential customers while scaling back on those with lower predicted returns.