Kissmterics Historic Data Import & Customer Lifetime Analysis – Bitesize
Bitesize Irish Gaelic is a language learning site which offers a freemium subscription service to users looking to learn Irish it has been in operation for over 4 years.
Bitesize came to us to to integrate Kissmetrics and take full advantage of customer life time value reporting the tool offers.
Understanding Customer Lifetime Value
CLV calculation is one of the most powerful features of Kissmetrics. which allows us to see how much revenue a customer generates over their entire subscription. This metric is crucial in answering:
– How much you can spend to acquire a customer?
– What is the average revenue and churn?
CLV calculation becomes more accurate & useful the more data it is fed. Traditionally when you start using the analytics you start from scratch getting more predictive as time wears on.
Historic data import to fast track CLV analysis
As Bitesize had been in operation for several years we recommended using kissmetrics import api to fast track the process and get all historic customer data into KM.
Over the years bitesize has used 2 different payment platform for processing subscription payments 2Checkout and Fastspring we developed a small app that pulled data from api of each service and then prepared it for sending it into KM.
Payment services dont track cancellations only payments and payment amount, a description of transaction using these we classified transactions into different events and created payment profile for each customer. Using rules to indicate first payment as signup and sending KM cancellation event based on last payment. (Signup and Cancellation events are basic blocks of clv calculation).
This data was then sent to Kissmetrics using its php library.
After this Bitesize was able to see a very clear picture of revenue and clv historically as well as chart a growth trajectory. It also showed some interesting trends in behavior of existing and old customers that would have otherwise been undiscovered without import of historic data.
This data can also be used to see what plans were popular, how users upgrade and downgrade, user cohorts analysis for all its user base from the beginning making Kissmetrics eminently more useful from get go.