The CoachClub business model rests on free signups to the service followed by recurring monthly subscriptions. How long its users subscribe for is therefore critical, and especially important when it comes to acquiring new members.

A member's lifetime value, that is the value generated by the member over time, varies depending on the acquisition source that led the member to initially sign up to the service. Optimizing each acquisition source equally, based on an average acquisition cost per signup, limits proper optimization of online media as it: • tends to favor acquisition sources that yield subscribers with a low lifetime value;

• leads to under-estimating or neglecting membership sources that may be highly profitable for a few months, for the sole purpose of keeping to the average acquisition cost. These signups could be acquired at a much higher cost but generate an even greater number of highly profitable subscribers.

DETERMINING A CUSTOMER’S VALUE OVER TIME

CHALLENGE

Nicolas DeswarteMarketing Director

"Madmetrics helped us to place priority on the most profitable acquisition sources and thereby

trigger a positive recruitment cycle"

COACHCLUB MAXIMIZES CLIENT VALUE THROUGH LIFETIME VALUE ANALYSIS

CoachClub, the first online video sports and wellness coaching service, was launched in 2009. Ambitious growth targets in hand, the CoachClub marketing team entrusted the management of its SEM and Display channels to Keyade. Madmetrics, Keyade's multi-channel technology, was a determining factor in the selection of an online media agency.

DEFINE AN INNOVATIVE DISPLAY AND SEM STRATEGY

MISSION

Keyade is an independent company specializing in performance-based online media acquisition (Keyade Agency), and its conversion using dedicated technologies and services (Madmetrics). Launched in 2006, Keyade now operates in over 80 countries from its offices in Paris, France, and Dubai, UAE. Its client portfolio includes OLX, Meetic/Match.com, Air France, Europcar, Jumeirah, Redoute and Voyages-SNCF.

Headquarters: 8, rue du sentier, 75002 Paris, France / +33 (0) 1.44.79.38.13 / www.keyade.com / contact@keyade.comSimplified joint-stock company (SAS) with a capital of 49,481 Euros, registered with the Trade and Commerce Register of Paris undernumber B 490 339 207—CNIL (National Commission for Information Technology and Privacy) no. 1244457

CoachClub is the first online video sports and wellness coaching service. Based on a client's replies to a questionnaire (goals, physical abilities, health, available times, etc.), CoachClub defines and generates a custom video program that can be viewed online or on an internet-enabled TV. Helping its members reach their goals is CoachClub's number one priority! CoachClub provides a service that is professional and complete (over 900 hours of sports and wellness videos), and continuously adjusts its members' fitness programs in order to help them reach their goals. CoachClub currently has 390,000 members in France and the United States, and is preparing its international deployment strategy for 2013.

+275% SIGNUPS

RESULTSEXPLOSIVE REVENUE GROWTH!

The acquisition strategy implemented for CoachClub favors those specific traffic sources which provide the most value over time. All sources, whether they be keywords, banners, or affiliates, are not created equal. Keyade Agency, which manages search and display media spending, does not optimize ad campaigns based on an average signup cost set by the advertiser. Rather, the acquisition cost is based on reaching a certain level of profitability over several months, per audience segment, and per traffic source. Nicolas Deswarte, Marketing Director for CoachClub, explains the impact the selected technology has had on his company's growth: "Madmetrics has allowed us to identify diverse signup behavior and profitability over time, and apply that information to our daily media management process. This allows us to break even on subscribers coming from sports-related keywords three times faster than those from sources like "diet" or "lose weight". The strategy is paying off and we're getting increasingly higher quality members. For example, new member signups in January 2012 increased by 275% over January 2011. The revenue generated by these same subscribers increased by 385%. Keyade and its technological solution helped us to place priority on the most profitable acquisition sources and thereby trigger a positive recruitment cycle."

SOLUTIONEXTRACT THE LIFETIME VALUE FOR EACH TRAFFIC SOURCE

The Madmetrics solution links directly to the CoachClub database, which allows it to bypass the limitations of cookie lifetimes and show the lifetime value generated by each new subscriber to the service, at all levels of the media tree. It also collects and regroups all the statistical data from all media agencies, including costs.

This allows a dual acquisition strategy to be pursued: acquisition is managed on a day-to-day basis and based on an acquisition cost per member which is adjusted per keyword depending on the long-term profitability of that particular audience segment. For day-to-day operations, the interface provides a granular operational view for each lever, as well as multi-lever views.

+385% TURNOVER

COACHCLUB MAXIMIZES CLIENT VALUE THROUGH LIFETIME VALUE ANALYSIS