Client Profile
Our client is a renowned international European retailer, operating a range of hypermarkets, supermarkets, and convenience stores.
Challenge
The client had customer data scattered across different locations and departments, leading to a disjointed view of their customer base. Internal teams were working in silos, contributing to inefficient operations. Furthermore, the retailer had limited information about customers, especially when customers refrained from using their loyalty cards.
Solution
We proposed an auto-segmentation strategy to deliver enhanced results by segmenting customers based on various key attributes. We also introduced a comprehensive Customer Data Platform (CDP), allowing for total control of the customer journey.
To provide a 360-degree customer view, we collected and integrated data on all customer activities. We also employed RFM (Recency, Frequency, Monetary) analysis to track customer value, making the understanding of customer behavior simpler than ever before.
Results
As a result of our strategy, the client experienced a 3.5% increase in net revenues due to higher conversions. They achieved a 60% reduction in the value of redeemed discounts, and a 50% redemption rate for cart coupons. Loyal users increased by 65%, improving customer retention significantly.
Digital channel effectiveness was also increased across various platforms including Email, SMS, Mobile, and Social Media. We automated marketing campaigns pre- and post-sales to streamline operations. Customer satisfaction from Omnichannel activities saw a notable boost. Additionally, the introduction of automatic ticket assignment led to reduced manual processes.
The solutions implemented also offered scalability to accommodate new languages, teams, and markets with ease.
Conclusion
This case study underscores the transformative power of effective customer data management in retail. By harnessing advanced segmentation strategies, comprehensive customer data platforms, and insightful RFM analysis, the client was able to improve operations, increase revenues, enhance customer satisfaction, and streamline marketing efforts.
