BONOBOS USES PREDICTIVE ANALYTICS TO OPTIMIZE CUSTOMER ACQUISITION STRATEGY24 Bonobos is a US men's apparel brand launched in 2007. Bonobos has become the largest apparel brand ever built on the Web in the USA. Bonobos is a data-driven, customer-focused retailer that has always recognized the importance of making business decisions around customer lifetime value (CLV). Initially the marketing team had used Excel to compute CLV metrics but, as the company experienced rapid growth and its customer base grew substantially, this became prohibitively time-consuming and tedious and the analysis was not completed as frequently as the team would have liked. Not having access to real-time CLV insights made it difficult for Bonobos to make agile decisions about customer acquisition. Bonobos then began to use analytics to compute the lifetime value of customers acquired through every marketing channel. This allows Bonobos to understand which acquisition channels are bringing in the most valuable customers, and optimize their acquisition strategy accordingly. For example, Bonobos discovered that its Guideshops, service-oriented e-commerce stores that enable men to try on Bonobos clothing in person before ordering online, were bringing in customers with the highest CLV across all of its marketing channels. This insight encouraged Bonobos to expand its marketing efforts to support the Guideshops. Bonobos also uses predictive analytics to identify their highest CLV customers as early as their first purchase. Bonobos then uses this information to ensure these highly valued customers get the attention they deserve. 'Top customers' receive additional services, such as handwritten thank-you notes from the Bonobos customer service team. Bonobos measured the impact of these notes on incremental revenue and repeat purchase rate, and saw a positive lift. Top customers also receive perks such as exclusive event invites and early access to new merchandise. CASE STUDY 3.3 What CRM strategy Bonbos adopted? Using the three acquisition strategy questions (i.e. target, channel and offer) analyze how Bonbos succeeded in retaining its valuable customer