Customer Analytics and Business Intelligence Solutions for a Leading Retail Chain

Mar 28, 2017

Customer analytics comprises processes and techniques, such as data visualization, information management, predictive modeling, and segmentation, to give organizations the necessary insights to deliver offers that are relevant and timely. Customer analytics combined with business intelligence can revolutionize the approach organizations take to identify customer needs and behavior. Customer analytics and cognitive solutions also offer a better understanding of what is relevant to the target customer as the solutions can be customized for specific industries, including retail and CPG, banking, insurance, and telecommunications.

With the availability of volumes of information — related to products, prices, brands, and competitive offerings — the customers today are more informed and aware than ever before, making it imperative to predict customer behavior and offer a well-suited response. Moreover, a deeper understanding of customers’ buying habits and lifestyle preferences help in drawing accurate predictions about their future buying preferences. Consequently, to be able to serve the existing customers better, prevent attrition, and build stronger relationships, it becomes imperative for companies in this market space to offer them the right product through the right channel at the right time.

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Customer analytics and business intelligence solutions allow enterprises to prepare, blend, and analyze all customer data from various channels and systems in a repeatable analytic workflow to provide a 360‐degree view of the customer. Additionally, organizations can considerably enhance response rates, customer loyalty, and the ROI by contacting the right customers with highly relevant offers and messages, anticipate customer demand, increase operational efficiency, reduce campaign costs, and decrease customer attrition.

The Business Challenge and Quantzig’s Approach

With a keen eye on exploring future growth opportunities, the client, a global retailer collaborated with Quantzig to better understand the dynamic demands of different customer demographics based on the in-store customer experience. The aim of this customer analytics engagement was to expand the client’s customer base and improve customer experience. According to the client, factors such as stagnant revenues and declining customer satisfaction levels played a crucial role in hampering their growth prospects. As a result, they wanted to analyze the real-time, in-store behavior of their customers based on their demographics, purchasing history, marketing promotions, response time, dwell time data, and optimize their experience, shopper traffic, and sales.

The primary objective of this customer analytics engagement was to deliver incremental value to customers based on insights from their purchasing behavior and evaluate how the store format was impacting product sale to identify potential areas of improvement for store design. Furthermore, the analysts at Quantzig also helped the client develop a solution that is capable of analyzing and targeting customers based on their in-store activity and improve customer footfall and optimize offers and discounts to spur sales.

To meet the requirements of the global retailer, our customer analytics team collaborated with the client to develop a solution using POS, internal, and Wi-Fi data to gain an in-depth understanding of their customers.

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Business Benefits and Insights

With the objective of helping the retailer understand the dynamic demands of different customer demographics, a dedicated customer analytics team with hands-on experience, helped the client improve customer acquisition and sales. Quantzig’s research team also offered insights into product location, sales, and associated customer behavior, such as footfall, the length of stay, visit frequency or loyalty, and purchase volume. The customer analytics solution also helped the global retailer develop a complete picture of user interactions based on demographic and purchase behavior to accurately identify customer needs and interests. Quantzig also helped them identify product assortment issues in terms of average transaction volumes or amounts for improving space productivity.

Additionally, the insights offered by this customer analytics solution also helped the global retailer identify the departments that the customers visit and gain insights into customer flow analysis, store penetration, and the time spent in each department. During the course of this engagement, it was also noted that less than 15% of the customers were visiting the departments at the top levels and most of the customers visited up to two departments and left the store. Furthermore, an analysis of the promotional effectiveness also showed that most shoppers were not interested in promotional offers and discounts.

In just 10 weeks, the client was able to gain insights into the customer’s satisfaction levels and devise effective strategies to improve promotional offers and campaigns and increase customer footfall in various departments. Quantzig’s customer analytics specialists also helped the client classify loyal and satisfied customers, based on NPS, longevity, and purchase behavior. The solution offered also provided sales forecasts at the category and product level for better business planning.

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