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Lifecycle and Value-Based Segmentation


A global cruise company communicated to all of its customers with similar messages and frequency.  However, these customers were in different stages of the purchase lifecycle and had varying ranges of lifetime value (LTV). Our client was challenge to optimize its marketing based on a guest’s purchase lifecycle and predicted value.


To overcome this challenge, Merkle developed a robust set of lifecycle models that segmented customers into five relevant stages: inspiration, planning, booking, participating, and sharing. This was achieved by analyzing a customer’s purchase cycle and unique brand engagement across channels. 

Merkle helped the client to create contact strategies with tailored messages based on the customer’s interests, current lifecycle stage, product preferences (product model), and total predicted value—the revenue or margin each guest will bring to the client over a specified period of time. Insight into this metric enabled the client to make informed decisions about where to allocate marketing investments to maximize the guest portfolio value. Finally, though the messaging varied from segment to segment, each had the final intent of moving the customer through the purchase funnel.


Average reduction in purchase cycle for all segments
Reduction in purchase cycle for select segments
Reactivation of lapsed guests
Reduction in customers moving to "Past Booking" stage, year-over-year

Keys to success

  • In-depth data and analytics analysis to understand customer engagement at each stage of lifecycle
  • Relevant customer segmentation
  • Tailored messaging based on a customer's stage in lifecycle

Discover how we did it. Contact us today.

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