Customer Success Segmentation Helps a Sustainable Packaging Firm to Improve Customer Retention Rate by 27%

Jun 18, 2020

What You Can Expect from This Case Study

  1. Customer Segmentation: What Is It All About?
  2. Benefits of Customer Segmentation
  3. The Client
  4. Predicaments Faced
  5. Our Approach
  6. Business Impact
  7. Why Choose Quantzig?

Customer Segmentation: What Is It All About?

Customer success segmentation enables you as a brand to understand the patterns that differentiate your customers. Collecting and analyzing data to understand patterns and differences is not useful unless a business utilizes the data. Deploying a customer success framework enables you to customize your business communication. This plays a crucial role in identifying potential customers since different customer segments often have different interests, values, and tastes, and disparate customer segments may not respond to the same marketing strategy. Every company is aware that certain segments of customers are more likely to purchase different products based on past purchases they made, thus it helps in predicting upcoming purchases of customers and potential customers. There are three main approaches to customer segmentation –

  1. Need-Based Segmentation
  2. Value-Based Segmentation
  3. Priority-Based Segmentation

Our advanced analytics solutions can help you create meaningful customer success segments based on customer needs and preferences. Request a free proposal to get started. 

Benefits of Customer Segmentation

The major benefits of customer segmentation are:

  1. Customer Retention: A personalized connection with the customers enables organizations to retain them better.
  2. Establish Brand Identity: By deploying an optimal customer segmentation strategy, a business can make them aware of the brand’s values and USPs. Creating a unique identity and brand perception in the customer’s mind enables customers to engage directly with the organization’s products and services.
  3. Enhance Customer Relationship: Customer segmentation enables the production and marketing departments to be in sync with customer needs and sentiments, thus enabling them to target and satisfy them better. This leads to optimized customer loyalty and more efficient customer relationship management.

The Client

The client is a pioneer in the field of sustainable packaging, with more than 40 manufacturing units spread globally across North America.

Predicaments Faced

This sustainable packaging industry player was looking forward to adopting an integrated approach to customer success segmentation in the global packaging industry. The main challenges faced by this sustainable packaging industry player revolved mainly around developing a customer success strategy to drive maximum results from its campaigns. Thus, the client wanted to develop and deploy a customer segmentation framework to achieve better profit margins. The sustainable packaging industry client wanted to accomplish the following:

  1. Price products differently
  2. Understand the behaviors of potential customers
  3. Optimize marketing strategies
  4. Identify the least profitable customer segment

Our Approach

Quantzig’s customer success segmentation solution helped the sustainable packaging industry client to gain a deep understanding of how their best and most valuable customers can be segmented to drive maximum value from each customer group. By deploying the much-needed customer success framework, the client gained several benefits that enabled them to upscale their business and drive measurable outcomes.

Speak with our analytics experts to know-how customer success segmentation can help businesses to drive profitable outcomes.

Business Impact

The devised customer success segmentation framework enabled the client to devise need-based targeted marketing strategies for each customer segment. Our customer analytics experts also helped the client to understand the potential of the customer base by conducting a detailed review of factors responsible for customer motivations and price sensitivity. As a result, the sustainable packaging company was able to effectively price its products and ensure maximum MROI. The customer success framework also empowered the client to-

  1. Devise an effective pricing strategy
  2. Identify the most and least profitable customer segment
  3. Develop targeted marketing strategies
  4. Enhance customer relationship
  5. Improve customer retention rates by 27.3%

Request a free proposal to leverage customer segmentation analytics to drive marketing outcomes through targeted promotions.

Why Quantzig?

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 analytics.

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