Optimizing Profitability for a Global F&B Company with Customer Segmentation

Aug 9, 2021

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.

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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 analysis approach helps 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.

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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.

  1. Database Analysis
  2. Creation of More In-Depth Segmentations
  3. Aligning Organizational Strategies to the Segments
  4. 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

The four-step process customer segmentation revamp process:

Step 1 – Database Analysis

Quantzig’s experts integrated and synthesized disparate customer datasets from multiple sources and analyzed them to look for clusters of similar behavior. A detailed analysis of the clusters enabled the client to create segments out of them and devise relevant strategies to promote themselves amongst each segment.

Step 2 – Creation of More In-Depth Segmentations

Tailoring the customer experience is a proven methodology to boost sales and customer retention. There was, thus, an urgent need to move beyond a priori classification scheme based on conventional assumptions rather than market research and move to highly differentiated segmentations that would benefit the company. Quantzig’s experts, thus, created additional customer segmentation profiles by assessing customer insights from multiple sources.

Quantzig’s experts created needs-based customer segmentation by finding insights on customer needs and dashboarding the needs not currently being fulfilled. Quantzig’s experts also created value-based segments, differentiating clients by their economic value. There were other segments created based on the customers’ purchasing patterns, goals, touchpoint engagement.

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Step 3 – Aligning Organizational Strategies to the Segments

Once the segments were created, Quantzig’s SMEs helped the client imbibe their new segments in their current processes, strategies, and activities.

Step 4 – Creating Future Strategies on the basis of these Segments

Quantzig’s experts created data visualizations that enabled the client to develop accurate, data-driven marketing and expansion strategies with the customer segmentation inputs.

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 strategy 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.

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