Driving Profitability with the Help of Customer Analytics
About the Client
The client is a leading player in the US retail industry, specializing in the non-alcoholic beverages segment.
Businesses today possess huge volumes of data that offer insights on customer behavior, customer preferences, and demographics when analyzed in detail. However, many lack the ability to unlock the real wealth of information from the data to identify customer segments and define comprehensive go-to-market strategies. Also, owing to the surge in connected consumer networks, customer relationship management requires more analytics than cross-selling. It requires a detailed understanding of the customer journey starting from the first touchpoint through purchase to referrals and beyond.
Quantzig was approached by a leading non-alcoholic beverages retailer who was looking at identifying and retaining profitable customers groups to reduce customer churn and increase revenue. In addition, they also wanted to identify the triggers behind their 40% customer churn rate which had drastically impacted their bottom line. Also, the unstructured approach to customer segmentation led to high losses which ultimately cost them an 18% decline in annual revenue.
A commitment to improving customer satisfaction seems easy to make but is challenging to execute. Even well-established businesses can find themselves coming up with excuses to delay, defer, and deny. Request a FREE proposal to know more about our customer analytics solutions.
Top Challenges Faced by the Client
Problem Statement 1
The client’s unstructured approach to customer segmentation and their inability to identify profitable customers led to huge losses and a sharp decline in their annual revenue.
Problem Statement 2
The second major challenge faced by the client revolved around identifying opportunities to approach customers with tailored incentives or other contextual retention offers.
Problem Statement 3
The third challenge revolved around identifying the lifetime value of loyal customers, for which they had to assess the drivers behind customer churn by leveraging our customer analytics expertise.
Contact our customer analytics experts for more information on how you can apply new methodologies and customer analytics techniques to improve your customer relationship management strategy.
Solutions Offered and Value Delivered
To unleash the true potential of customer data the, we recommended a structured customer analytics solution that combined behavioral, transactional, demographic, and click-stream data obtained from various customer touchpoints. It involved the application of hierarchical and non-hierarchical data clustering methods to help them create customer segments and categorize the obtained insights into customized views.
To tackle the three core challenges faced by the client we developed a comprehensive customer analytics framework to evaluate customer journey from three viewpoints- customer churn, customer loyalty, and customer potential.
Phase one of this customer analytics engagement revolved around a detailed analysis of customer behavior. By analyzing the customer journey, our team skillfully applied customer segmentation heuristics to quantitatively identify customers with the highest potential for retention.
Phase two of this customer analytics engagement revolved around accurately predicting the customer lifetime value of 8000+ customers, to improve the strategy behind customer relationship management. Using cutting edge algorithms and customer churn analytics we developed a robust customer lifetime value model, which helped analyze behavioral indicators along with their customer’s transaction histories.
A progressive customer analytics approach made it possible to take a holistic look at the client’s customer groups, strengthening their decision-making process. Based on the outcome of this engagement we recommended a few customer segmentation models that leveraged data from disparate data sources.
Our team has extensive experience in the delivery of customer analytics solutions at various scales. We’ll ensure you gain the clearest insights into customer behavior and customer journey. Request more information!
Quantzig’s customized customer analytics solutions empowered the retailer to identify and categorize their customers with a low to medium purchase history, yet the potential to increase in the future. Though the engagement initially targeted 40% of their customer base, the client witnessed a 3X rise in customer retention rate within a few months of deploying the new framework.
Post implementation, the retailer was able to better identify customer groups with high churn rates. This not only enabled them to preemptively intervene before the customers left, but also empowered them to offer targeted offers to retain them. Backed with in-depth customer analytics insights and details on customer churn triggers, the client was able to identify operational inefficiencies and increase customer satisfaction. The recommended customer analytics framework reduced customer churn by approximately 16%, resulting in annual incremental revenue of $8M.
Moreover, our customer analytics solutions also helped them understand the distinct characteristics of each customer segment to create a relevant go-to-marketing strategy.
With the help of customer analytics the client was able to:
- Track and monitor customer behavior and customer lifetime value each newly defined segment
- Capture and measure key performance indicators
- Identify gaps and improvement opportunities
Why Quantzig’s Customer Analytics Solutions?
From analyzing customer churn rates to creating complex forecast projection models, Quantzig’s customer analytics solutions have helped leading businesses to harness the power of their customer data to better understand and respond to the complexities in today’s digitally oriented world. Leading brands operating in various industries such as retail, manufacturing, finance, and healthcare have partnered with us to leverage customer analytics to drive revenue and improve the efficiency of their business functions.