Customer Segmentation Helps a Large Retail Client Maintain Leadership Position in Europe

Aug 16, 2017

Highlights of the Customer Segmentation Case Study

ClientA global retail industry chain
ChallengeUnclear competitor strategy and slowing growth
SolutionDeveloped value-based customer segments and set priority levels, developed specific actions to drive growth

Benefits of Customer Segmentation 

In the ever-changing competitive environment, retail industry players are looking to seek ways to drive traffic and gain traction in the competitive landscape. Customer segmentation allows retailers to pinpoint their marketing strategies and deepen customer loyalty. With the help of customer segmentation, marketers can customize their efforts based on the preference of their customers.

Customer segmentation models deal with gathering customer data and implementing relevant marketing strategies to retain each customer segment. To understand consumers’ behavior, retailers should leverage the use of customer segmentation with behavioral models to better target the right customers; thereby, delivering incremental sales, growing profitability, and reducing customer attrition.

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Quantzig’s customer segmentation strategies help retail industry players uncover the needs and attitudes of the customers. Also, the client can tailor the use of customer segmentation to further strengthen customer relationships and build profitable growth strategies. Quantzig’s customer segmentation strategies also help the retail industry client make informed business decisions and improve business performance.

The Business Challenge

A global and diversified retail industry chain was facing a predicament with their businesses and was witnessing a sign of slowing growth on the horizon. Moreover, the client wanted to understand the underlying competitors and assess the list of new entrants that were entering the market on a regular basis. To compound this complexity, the client sought ways to implement a two-step distribution system to influence the direct customers and the demanding end-users.

Our Approach

To develop a robust strategy for navigating this market, Quantzig’s customer experts conformed to a blended research approach comprising of secondary research and in-market interviews. Also, Quantzig’s customer segmentation experts conducted interviews with global and local customers, direct customers, and end-users. The experts also created a customer marketing mix comprising of specific groups and carried out various strategies in terms of merchandising strategy, own-brand strategy, and promotion strategy.

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Solutions Delivered

  • Built a market map to characterize the economic activity at the project level, considering each consumers segment
  • Carried out extensive interviews with global and local consumers, direct customers, and end-users
  • Developed value-based segments to consider customer priorities in light of customers’ needs
  • Prioritized each segment based on the current and future attractiveness
  • Developed specific actions to drive growth

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