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The Bouqs Co. Leverages Generalized Event Modeling

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Despite The Bouqs Co's precipitous growth, the company has faced unique pressures to grow customer revenue year-round. Competitive pressures are high in the low- margin floral industry and extreme seasonality creates a need to smooth out demand during other parts of the year. In addition, given The Bouqs' unique business model of sourcing flowers directly from farmers, ensuring some amount of revenue predictability is paramount. The company does have two powerful mechanisms in place to weather these challenges: its subscription and special events scheduling services. Customers who sign up for a Bouqs subscription receive regular deliveries From being featured on O, The Oprah Magazine's 2013 Wow List, to earning the "highest quality" superlative in Harper's Bazaar's survey of flower delivery services, The Bouqs Co. is already well on its way to achieving its goal of disrupting America's $27 billion per year flower industry. Founded in 2012 by college friends John Tabis and Juan Pablo Montúfar, The Bouqs Co. is an online retailer that specializes in delivering flowers and plants grown on sustainable farms in places like Ecuador and Colombia to customers across the United States. By working with their farm partners directly, The Bouqs Co delivers fresher, longer lasting arrangements at an incredibly competitive price point. W O L V E R I N E W O R L D W I D E + C U S T O R A T H E BOUQS L E V E RAG E S E V E N T P R O P E N S I T Y M O D E L S TO I N C R E A S E CUSTO M E R LOYA LT Y CASE STUDY The Challenge Creating Predictable Year Round Demand in A Highly Seasonal Industry on a cadence of their choosing, anywhere from once a week to once every two months. Similarly, the company's scheduler tool allows customers to place orders ahead of time for special occasions throughout the year — including large-scale events. Based on Custora's CLV models, the predicted one-year profit of customers who utilize the scheduler is six times higher than that of its average customer. IT WAS STRUGGLING TO FIGURE OUT WHICH CUSTOMERS THESE SERVICES WOULD RESONATE WITH — In short, while The Bouqs knew that the customers who signed up for the subscription or scheduler service offered the greatest lifetime value to the company, leading to wasted marketing efforts and spend.

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