In the highly competitive landscape of the Food and Beverage (F&B) industry, understanding and catering to diverse customer segments play a crucial role in enhancing profitability. This case study delves into how Quantzig collaborated with a global F&B company to optimize profitability through customer segmentation services.
What You Can Expect From The Customer Segmentation Case Study
- About the Client
- About the Problem
- Our Customer Segmentation Strategy and Why it Was Chosen
- The Customer Segmentation Solution and How it Was Implemented
- Customer Segmentation Analysis – The Business Impact
- Client Feedback after Implementation of the Customer Segmentation Solution
- Why Choose Quantzig’s Customer Analytics Solutions?
Highlights of the Customer Segmentation Case Study
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About the Client
The client is a global company engaged in the manufacturing, marketing, and selling of animal-free, plant-based foods and meat substitutes. Established over ten years ago, the client is headquartered in the United States and sells their products via online, grocery, mass merchandiser, natural retailer, and various food-away-from-home channels, including restaurants, outlets, and schools.
With operations across 71 countries worldwide and more and more consumers choosing vegan, animal-free food alternatives, the client is expected to expand to 80+ countries in the next five years.
About the Problem
While the expansion was going well for the client, their marketing division suffered, especially in attracting online customers, as they didn’t have highly differentiated customer segments. Instead of targeting just ‘vegan’ customers, they wanted to analyze their customer base to understand various underlying criteria separating them into smaller buckets. This would not only enable the client to create winning marketing strategies but also profile and retain their most valuable customers.
The client also wanted to create an expansion strategy, predict the total future value of their business, and address each customer group accurately to optimize sales.
“Quantzig’s customer segmentation services help businesses integrate and synthesize disparate customer data sources and develop insights about the drivers and factors impacting customer behavior, providing you with insights needed to identify and target profitable customer groups and optimize revenues.“
– Quantzig’s Customer Analytics Experts
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Our Customer Segmentation Strategy and Why it Was Chosen
After speaking with the client about their problem in detail, Quantzig’s subject matter experts created a four-step process for revamping their existing customer segments.
- Database Analysis
- Creation of More In-Depth Segmentations
- Aligning Organizational Strategies to the Segments
- Creating Future Strategies on the basis of these Segments
This strategy was chosen by Quantzig’s experts in order to ensure the new customer segmentation is not just done correctly but is absorbed and made use of right away throughout all organizational processes.
The Customer Segmentation Solution and How it Was Implemented
Customer segmentation is a pivotal strategy in marketing, enabling businesses to tailor their approaches to diverse consumer groups. In collaboration with Quantzig, a client sought to revamp its customer segmentation process, leading to a four-step transformation that brought about significant improvements in customer engagement and sales.
Step 1 – Database Analysis: Unveiling Behavior Clusters
The initial phase involved an in-depth analysis of disparate customer datasets. Quantzig’s experts meticulously integrated information from various sources, seeking clusters indicative of similar behavior. This detailed examination allowed the identification of distinct customer segments. The client gained valuable insights into these clusters, laying the foundation for crafting targeted strategies tailored to each segment’s preferences and behaviors.
Step 2 – Creation of More In-Depth Segmentations: Going Beyond Conventional Approaches
Recognizing the importance of moving beyond traditional classification schemes, Quantzig’s experts delved into creating more nuanced customer segmentation profiles. This involved an exploration of customer insights from diverse sources. Needs-based segmentation was introduced, pinpointing unmet customer needs and highlighting areas for improvement. Additionally, value-based segments were established, differentiating customers based on their economic contributions. Segments were also delineated based on purchasing patterns, goals, and touchpoint engagement, providing a comprehensive understanding of the customer landscape.
Step 3 – Aligning Organizational Strategies to the Segments: Integration into Current Processes
With the newly defined segments in place, Quantzig’s Subject Matter Experts (SMEs) collaborated with the client to seamlessly integrate these segments into existing organizational processes, strategies, and activities. This alignment ensured that customer-centric approaches were woven into the fabric of the company’s operations, enhancing the effectiveness of marketing initiatives and overall customer satisfaction.
Step 4 – Creating Future Strategies Based on Segments: Data-Driven Insights
In the final phase, Quantzig’s experts leveraged data visualizations to empower the client with accurate, data-driven insights. These visualizations provided a clear understanding of customer segmentation inputs, enabling the development of precise marketing and expansion strategies. By aligning future initiatives with the identified segments, the client could proactively address customer needs, bolster engagement, and drive sustainable business growth.
The four-step customer segmentation revamp process undertaken in collaboration with Quantzig allowed the client to transition from conventional approaches to a more sophisticated, data-driven strategy. The integration of nuanced segmentations into organizational processes ensures that the client is well-equipped to navigate the dynamic landscape of customer preferences and behaviors, fostering lasting customer relationships and business success.
Drive innovation, growth, and market excellence with detailed analysis of customer datasets using advanced customer analytics methodologies.
Customer Segmentation Analysis – The Business Impact
With the help of Quantzig’s customer segmentation analysis engagement, the vegan food products manufacturer gained an in-depth understanding of how their best customers are segmented within the global food industry. The client also gained several inputs that enabled them to create a marketing strategy that considered all the segments.
The critical business outcomes observed over four months were –
- 8% reduction in customer churn
- 17% increase in customer engagement
- 9% increase in MROI
- 11% reduction in marketing spending
- Accurate customer lifetime value analysis
- Creation of a data-driven expansion strategy
Client Feedback after Implementation of the Customer Segmentation Solution
“Quantzig’s new customer segmentation services enabled us to create better marketing strategies, targetting the right customers. This led to increase in customer engagement and decrease in unecessary marketing spends. The specialists from Quantzig were very professional and knew right away what needed to be done. They ensured all processes are functioning seamlessly before ending the project. I recommend Quantzig’s advanced customer analytics solutions.”
– Senior Vice President, Customer Experience
Why Choose Quantzig’s Customer Analytics Solutions?
Quantzig is the world’s foremost full-service advanced analytics and business intelligence solution provider, turning clients’ complex, unstructured data into intelligent, actionable insights that enable them to solve complex business problems and inspire innovation, change, and growth. Over the past 16 years, our insights have helped over 120 clients spanning across industries and sectors like Pharmaceutical and Life Sciences, Retail and CPG, Food and Beverage, and more. We have successfully delivered 1500 in-depth solutions in areas like Marketing Analytics, Customer Analytics, Supply Chain Analytics, and more.
At Quantzig, we firmly believe that the competencies to harness maximum insights from the influx of continuous information around us will drive any organization’s competitive eagerness and success. Our objective is to bring together the best combination of analysts and consultants to complement food and beverage organizations with a shared need to discover and build those capabilities and drive continuous business excellence through advanced customer analytics.
Did this customer segmentation case study help you decipher how creating right segments can help you save on marketing spends, increase returns, and eliminate inefficiencies? Speak with our analytics experts to know how you can make use of Quantzig’s advanced customer analytics solutions to drive profitability and excellence across your organization.
Through the implementation of Quantzig’s customer segmentation services, the global F&B company witnessed a transformative journey toward optimizing profitability. By tailoring strategies to specific customer segments, the client not only addressed diverse consumer needs but also achieved a more effective allocation of resources, leading to enhanced profitability.
In conclusion, this case study serves as a testament to the power of customer segmentation in navigating the complexities of the F&B industry. It highlights how a strategic approach, coupled with advanced analytics, can drive profitability and long-term success for global players in this dynamic sector.
