AI-POWERED PROFIT GROWTH
Case Study: This represents a composite analysis based on industry data and AdZeta's methodology. Results are illustrative of potential outcomes.

HVAC Supply Company Achieves 3.8X Contractor Retention with Value-Based Bidding

A leading HVAC superstore transformed their customer acquisition strategy by partnering with AdZeta to focus on predicted lifetime value, significantly boosting high-value contractor relationships and optimizing ad spend across their extensive product catalog.

HVAC Supply Superstore: Contractor Retention & Growth - AdZeta Case Study
PROJECT HIGHLIGHTS
01

Company Profile

This HVAC supply company is an e-commerce superstore specializing in HVAC equipment, custom sheet metal, air conditioners, heat pumps, and related products serving both professional contractors and end-users. Their business model focuses on competitive pricing, extensive inventory, and technical expertise for complex HVAC installations.

02

The Value Detection Challenge

With a diverse customer base spanning one-time DIY purchasers to recurring professional contractors, this company found standard ad metrics (CPA for first purchase) didn't identify which customers would become high-value recurring buyers versus one-time purchasers, making sustainable growth challenging.

03

Prior Ad Strategy

Relied on optimizing Google & Meta ads for initial equipment sales or website visits, leading to unpredictable customer retention and difficulty scaling profitable customer acquisition across their extensive product catalog.

04

Enter AdZeta

AdZeta implemented its Predictive AI to forecast customer LTV from initial interactions, enabling Value-Based Bidding focused on acquiring high-potential contractors and repeat purchasers rather than one-time buyers.

05

Strategic Implementation

Leveraged first-party data to train LTV models, then integrated predictive signals with Google (tROAS) and Meta (Value Optimization) campaigns. A/B tested against previous strategy with specific focus on contractor segments.

06

Remarkable Results

Secured a 3.8x increase in contractor retention while reducing customer acquisition costs by 45% for high-value segments, all thanks to AdZeta's predictive LTV insights.

Understanding the Problem

The Challenge: Blind Spend & Missed LTV Opportunities

B2B HVAC suppliers face unpredictable contractor retention and struggle to identify which leads will become valuable, recurring customers versus one-time purchasers. Traditional B2B marketing focuses on immediate conversions without considering long-term relationship value, leading to inefficient ad spend and missed opportunities with high-potential contractors.

HVAC Supplier's Traditional Funnel
without
AdZeta
All HVAC Website Visitors
General Product Inquiries
One-Time or Low-Value Purchasers
Unpredictable Retention & ROI
Optimization Goal
Optimized for Initial Purchase
HVAC Supplier's LTV-Optimized Funnel
with
AdZeta
High-Potential Contractor Traffic
High-Intent Project Leads
Valuable Recurring Contractors
Sustained High-LTV Relationships
Optimization Goal
Optimized for Contractor Lifetime Value (LTV)
01
Blind Spend Without Optimization

HVAC e-commerce businesses spend millions on customer acquisition with no way to identify which buyers will become recurring purchasers. This leads to wasted ad spend on one-time DIY customers and missed opportunities with high-value contractors.

02
The LTV Gap

Conventional ROAS metrics are limited to initial purchases, making it impossible to optimize for customers who will generate the most lifetime value through recurring orders and larger project purchases.

03
A Wasted Data Opportunity

Even companies with robust data warehouses struggle to turn their customer purchase data into actionable insights for smarter bidding strategies across their diverse product catalog.

ADZETA'S SOLUTION

AdZeta's Predictive LTV Solution for HVAC Supplier

AdZeta partnered with HVAC Supplier to revolutionize their digital advertising strategy. Recognizing that traditional CPA metrics failed to differentiate between one-time buyers and high-value, recurring contractors, AdZeta implemented its proprietary Predictive AI. This allowed HVAC Supplier to move beyond blind spend, accurately forecasting customer Lifetime Value (LTV) from the very first interaction and optimizing ad campaigns to attract and retain the most profitable professional HVAC contractors.

  • Predictive LTV Modeling for Contractor Identification

    AdZeta's AI analyzed HVAC Supplier's extensive first-party data to build robust predictive models. These models accurately forecasted the potential lifetime value of each new customer, enabling HVAC Supplier to identify high-value professional contractors right from their initial engagement – a capability traditional advertising lacked.

  • Strategic Value-Based Bidding Across Platforms

    Leveraging the LTV predictions, AdZeta integrated these insights directly into HVAC Supplier's Google Ads (using tROAS) and Meta campaigns (using Value Optimization). This strategic shift ensured ad spend was prioritized towards acquiring customers with the highest predicted LTV, moving away from optimizing solely for initial purchase volume.

  • Precision Targeting for High-Value HVAC Contractors

    The solution allowed HVAC Supplier to refine their audience targeting, focusing specifically on segments most likely to become recurring professional contractors. This precision minimized wasted ad spend on one-time purchasers and maximized the acquisition of loyal, high-volume clients critical for HVAC Supplier's sustained growth.

  • Continuous Optimization and Performance Validation

    AdZeta continuously monitored campaign performance, conducting A/B tests against HVAC Supplier's previous ad strategies. This iterative approach ensured ongoing refinement of bidding strategies and targeting parameters, consistently improving the efficiency and effectiveness of acquiring high-LTV contractors for HVAC Supplier.

A/B Test
Optimizing for Initial Purchase CPA

HVAC Supplier's traditional advertising strategy focused on optimizing Google and Meta campaigns for the lowest Cost Per Acquisition (CPA) on initial equipment sales or website visits. This approach often failed to distinguish between one-time DIY buyers and valuable, recurring professional contractors, resulting in unpredictable customer retention and wasted budget on low-LTV customers.

Value-Based Bidding with AdZeta's Predictive LTV

With AdZeta, HVAC Supplier shifted to a data-driven strategy, utilizing Predictive AI to forecast the Lifetime Value (LTV) of potential contractors. This allowed for value-based bidding (integrating with Google tROAS and Meta Value Optimization), strategically acquiring high-potential, recurring contractors and optimizing ad spend for maximum long-term profitability and retention.

Google Ads
Meta Ads

3.8X

Contractor Retention Increase

AdZeta's Predictive AI enabled HVAC Supplier to precisely identify and nurture high-potential professional contractors. This strategic shift led to a remarkable 3.8x increase in the retention of these valuable B2B customers, ensuring a steady stream of repeat business and long-term relationships for HVAC Supplier.

45%

CPA Reduction for High-Value Contractors

By moving beyond generic CPA metrics and focusing on predicted Lifetime Value (LTV), HVAC Supplier significantly optimized their ad spend. AdZeta's solution reduced the customer acquisition cost for high-value professional HVAC contractors by an impressive 45%, making their marketing budget work harder and smarter for HVAC Supplier.

320%

Marketing ROI Boost

The combined power of improved contractor retention and drastically reduced acquisition costs translated into a substantial uplift in marketing ROI for HVAC Supplier. AdZeta's value-based bidding strategy delivered a 320% increase in return on investment, proving the efficacy of targeting for long-term profitability in the B2B HVAC market.

12.5%

Qualified Contractor Conversion Rate Increase

With AdZeta's precise LTV forecasting, HVAC Supplier was able to attract more high-intent professional contractors. This refined targeting led to a 12.5% increase in the conversion rate of qualified leads into valuable, recurring customers, streamlining HVAC Supplier's sales funnel and boosting overall efficiency.

Driving Sustainable Growth and Profitability

Results & Transformative Impact for HVAC Supplier

The partnership with AdZeta marked a pivotal moment for HVAC Supplier, transforming their digital advertising from a 'blind spend' approach to a highly strategic, value-driven model. By leveraging Predictive AI and implementing value-based bidding, HVAC Supplier not only overcame the challenge of identifying high-value contractors but also achieved unprecedented growth and efficiency. These measurable outcomes demonstrate how focusing on Lifetime Value (LTV) can revolutionize B2B customer acquisition and retention, securing HVAC Supplier's position as a leader in the competitive HVAC supply market. The results speak for themselves, showcasing a clear path to sustainable profitability and stronger contractor relationships.

With AdZeta's AI platform, we've been able to scale our ad spend by 3.8X while significantly increasing the acquisition of our most valuable contractor customers. The predictive LTV insights gave us the confidence to expand our product catalog and enter new regional markets we previously thought were too competitive for our business model.
Client
Jennifer Rodriguez VP of Marketing, VP of Marketing

Ready to Build Similar Growth for Your E-commerce Brand?

If you're looking to move beyond basic ad metrics and build a truly profitable, scalable customer acquisition engine, AdZeta's Predictive AI and Value-Based Bidding can help.

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