Tipp24, one of Europe’s leading lottery brokers, quadrupled the performance of its marketing campaigns while dramatically boosting the productivity of its analytics team. All it took was a little predictive analytics.
Tipp24, an online lottery broker that makes it easy for people to play games like Lotto and Euro Millions online, wanted to use predictive analytics to optimize the customer lifecycle. Tipp24 lacked crucial information about the customer lifecycle, for example, whether people were increasing their use of Tipp24 products or reducing or stopping their use altogether. Tipp24 also couldn’t foresee what a customer would do next.
The company did not deploy predictive analytics within the company. Tipp24 selected KNEX InfiniteInsight, after comparing its performance with competitors that could not scale, creating a bottleneck in the company’s desire to deliver predictive models across all of their marketing activities.
With the new software Tipp24 can now recognize customer segments and patterns of customer behavior to improve opportunities for customer acquisition as well as cross-sell, up-sell and retention. For example, by offering products that fit into specific stages of the customer lifecycle, Tipp24 can convert one-time players into returning customers.
The company can also identify which players might be interested in weekly, monthly or permanent tickets, and which Lotto players might be interested in playing other kinds of lottery games. It can predict which active customers are at risk of becoming inactive, and which inactive customers have a high likelihood of becoming active again.
Particularly important is the ability to proactively manage relationships with high value customers, including preventing churn and nurturing existing customers into this segment. “We now know who our top customers are and the journey they took,” Arora said. “We’re able to apply this knowledge to each customer segment to build overall customer lifetime value and take the next best action with each of our customers.”