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The Secret Ingredient for Delivering Higher Lifetime Value

Hungry for some CRM success? Here’s how Food Delivery brands can optimize marketing performances by being smart with their data

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Direct-to-consumer food delivery companies are known to collect vast amounts of data on their hungry customers. Technology has paved the way to cash in on these mountains of information.

But how well are these companies using the data to communicate effectively with each customer, on each channel, to improve business performance?

Using Optimove’s platform wisely, a leading food delivery service provider routinely finds ways to increase customer loyalty, engagement, and revenue. For example, they were able to increase customer lifetime value by 19% and average order value by 64%, while decreasing customer churn by 22%.

The Secret Ingredient? Make Them Talk

Our findings show that the posting of reviews following an order is one of the clearest indicators of healthy customer lifetime value. However, not all engagement is the same.

So, here’s the treat. This food delivery service provider discovered that the average lifetime value of customers who posted reviews averaging between 3.01 and 3.5 was 79% higher than that of customers who posted no reviews or who posted reviews averaging under 3.

More importantly, as seen in the graph below, there is also a direct correlation between the number of reviews a customer gives and the customer’s average lifetime value:

With insights like this, these marketers used Optimove to gamify review campaigns based on each subscriber’s number of reviews. Yes, you can reward your customers in unique and creative ways to encourage them to continue placing simple reviews (even making them feel like a food critic).

And, it has been proven to work!

The Marketing team at this food delivery service provider segmented their customers based on the number of times they had placed a review and set up separate campaigns for each group. Then they divided their subscribers into four tiers based on each one’s number of reviews.

Finally, the marketers scheduled multichannel campaigns to be automatically sent to customers following each new order. These included mobile push notifications immediately following the delivery as well as email follow-ups in case a review had not been posted.

The Takeaway (Get it?)

The above example is just a small taste of how food delivery service providers can leverage customer data to generate insights that lead to more effective customer marketing.

Optimove strives to continuously discover new ways to improve your CRM operations that lead to increases in customer loyalty, engagement, and revenue.

Hungry for more? Download this use case with additional smart ideas for food delivery companies.

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Rony Vexelman

Rony Vexelman is Optimove’s VP of Marketing. Rony leads Optimove’s marketing strategy across regions and industries. Previously, Rony was Optimove's Director of Product Marketing leading product releases, customer marketing efforts and analyst relations. Rony holds a BA in Business Administration and Sociology from Tel Aviv University and an MBA from UCLA Anderson School of Management.

Dafna Sheinberg

Dafna is a creative marketing content writer and editor who produces strategic content for various online industries. With years of professional writing experience, she helps brands grow and increase profitability, efficiency, and online presence. Dafna holds a B.A in Persuasive Communications from Reichman University (IDC Herzliya).