Case Study: Baketivity achieves higher LTV-driven growth with AdVenture Media

Baketivity boosts LTV by analyzing churn with AdVenture Media

Baketivity, a company selling children's baking subscription boxes, partnered with AdVenture Media to grow their eCommerce business. Their challenge was that each subscription package had a significantly different cost-per-acquisition (CPA), and standard metrics like CPA or ROAS did not account for the potential lifetime value of a customer who might renew their subscription, obscuring the true value of each new acquisition.

AdVenture Media conducted a data analysis to calculate the customer lifetime value (LTV) for each subscription package by determining their unique churn rates. This analysis revealed that ROAS was higher when LTV was factored in and that one-time purchasers had the lowest LTV. AdVenture Media recommended focusing ad spend exclusively on acquiring subscription customers, which led to Baketivity achieving significant year-over-year growth.

Baketivity