Earth Breeze Conquers Data Complexity and Charts a Profitable Path Forward
Find out how Earth Breeze and Drivepoint answered key questions on customer lifetime value through cohort modeling.
Earth Breeze is on a mission to make high quality, low-waste products that work toward a more sustainable future. Their eco-responsible laundry products eliminate single-use plastics, and their many charity partnerships multiply the positive impact of every purchase.
The Earth Breeze team knew that making a large-scale impact with their sustainability mission meant that the self-described “planet-before-profit” company had to achieve profitable growth to be a sustainable business.
Understanding how customer lifetime value can guide your scaling strategy
Customers buy Earth Breeze products a number of ways, including directly on their Shopify-powered website, from online retailers like Amazon and Walmart, and in brick-and-mortar retailers around the world. Plus, options for one-time purchases and monthly or annual subscriptions mean that Earth Breeze has many different customer segments–and a highly complex data setup.
They knew intuitively that each customer segment had a different LTV, but that difference was difficult to quantify.
As Earth Breeze looked to profitably scale its business, the lack of clarity sparked a lot of questions: How much is each customer really worth? What should we agree to pay to acquire them? What’s the ideal mix of customers to acquire?
Smart segmentation and cohort modeling clarify key levers of growth
When Earth Breeze started using Drivepoint, the first priority was customer segmentation. The Drivepoint analyst team designed custom segments for each customer type, factoring in the unique attributes of their orders. With a new segmentation strategy in place, the team then modeled historical and predicted retention for each segment by cohort to arrive at an accurate LTV measure for each.
The Drivepoint team then modeled the impact on growth, profit, and cash from different mixes of each segment type and different levels of ad spend. The goal was to uncover the most profitable and least risky path to growth. Drivepoint’s platform made all these scenarios easy to manage, and the forecasts simple to update based on the most current financials.
Starting from a point of many unknowns, Earth Breeze gained a much richer and more accurate understanding of their customer lifetime value.
Armed with a strong model and new insights, Earth Breeze had the confidence to set the right guardrails on CAC while scaling revenue aggressively with positive profit margins.
“Drivepoint is like having a FP&A super team at my fingertips. I always know where we stand and can answer any questions I have about our business, our data or our finances, no matter how complex.”