What you’ll find in the case study:
- E-Waste Recycling Industry Overview
- Customer Segmentation Strategy in the E-Waste Recycling Industry
- About the Client
- How the Client found Quantzig
- The Challenge
- Solution Delivered
- The Business Outcome
- Why Choose Quantzig’s Customer Analytics Solutions?
Highlights of this Customer Segmentation Case Study
|Client||A leading e-waste recycling company headquartered in Germany|
|Business Challenge||To devise a reliable customer segmentation strategy that improves conversions and MROI|
|Solution Impact||9% increase in MROI, 17% reduction in marketing spending, 15% increase in customer acquisition|
E-waste Recycling Industry Overview
Stringent regulations and increasing environmental awareness among the audience have paved the way for the emergence and sustenance of the e-waste recycling industry. With the recent surge in urbanization and the buying power of consumers, electronic appliances have ceased from being only a luxurious dream to a necessity for every urban household. However, this has skyrocketed the demand for such appliances, which, in turn, is resulting in the quick production of electronic goods with shorter shelf life. This is inadvertently generating more e-waste and subsequently setting the podium for a thriving e-waste recycling industry. Backed by the environmental groups and federal regulations, the e-waste recycling industry functions by refurbishing functional equipment and recycling waste scrap containing bio-degradable and harmful materials; thereby, augmenting its resale value. However, a recent analysis of the market reveals factors that are affecting the market growth of the industry.
The emergence of the secondary market is one of the most notorious factors that is hampering the entry of new players in the e-waste recycling industry. This refers to the practice, where the electrical goods collected by individuals or private companies are allocated to secondary markets, which are then resold at reduced prices, particularly in developing nations. This limits the production source for the e-waste recycling companies; thereby, limiting their market growth.
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Customer Segmentation Strategy in the Retail Industry
To cement the foundation for steady market growth and assured revenue generation, any e-waste recycling company needs to have a clear-cut understanding of the customer base and the reasons behind their interest and disinterest in the company’s services. This industry thrives on the rate of electrical waste disposal done by the population. Hence, considering the nature of operations, it is crucial for companies in the e-waste recycling industry to keep a track of the nature of waste management done by customers from different regions. This can be achieved by engaging in robust customer segmentation models, which will analyze customer behavior by breaking them into segments. Such customer segmentation models will help create suitable marketing strategies that are tailored to the customers’ needs.
About the Client
The client is a leading e-waste recycling company offering waste management solutions for end-of-life durable goods such as computers, appliances, and electronics. Headquartered in Germany, the client recently expanded their business to southeast Asia and acquired two plants in Europe.
The client is well-known for offering a wide range of services that include deposits, loans, financial planning services, investments, pension cash management, online banking, foreign exchange, interest rate risk management, and mobile and tablet banking services. The banking and insurance company was looking for customer segmentation analytics solutions to connect with multi-channel customer segments and more precisely identify potential customer segments. Hence, they approached Quantzig to leverage its expertise in offering customer segmentation analytics solutions to drive revenue generation by growing their wallet share from existing as well as new customer groups.
The challenges these companies face can be attributed to several factors such as the growing need to develop customized marketing programs, design products and services to effectively address customer needs, and reduce customer churn rates. Today customers are digitally empowered, and therefore, traditional customer segmentation strategies used by banking and insurance players will no longer help. To gain strategic advantage, banking and insurance companies need to enhance their organizational capabilities and customer acquisition strategies.
How the Client found Quantzig
The client first attended one of our webinars on the importance of implementing analytics-driven insights to end-to-end organizational processes to gain a competitive edge in any industry, and then contacted one of the analytics experts to take the discussion on customer segmentation forward.
Customer Segmentation Challenge Faced by the Client
The client wanted to gain a deeper understanding of customer behavior in specific regions and understand their profit potential. Quantzig’s customer segmentation strategy was aimed at helping the client to devise a marketing strategy based on the customer’s needs, behavior, and demographics.
Speak with our analytics experts today to know more about the customer segmentation strategy for the e-waste recycling industry.
As one of the leading banking and insurance companies in Ireland, the client was successfully able to incorporate actionable insights from their customer behavioral patterns into their upstream and downstream business operations. However, with the increasing developments in the field of e-banking services, the banking and insurance company was not able to bring about improvements in their customer satisfaction and service levels. Also, owing to their huge customer base across Europe, they were facing challenges in identifying opportunities for revenue growth.
Additionally, the client found it challenging to differentiate the customer servicing experience and design product bundles to more effectively address customer preferences. The banking and insurance company was looking for customer analytics solutions to connect with multi-channel customer segments and more precisely identify potential customer segments along with ways to market and serve them. Hence, they approached Quantzig to leverage its expertise in offering customer segmentation analytics solutions to drive revenue generation by growing their wallet share from existing as well as new customer groups.
To grow and achieve their business objectives, every company irrespective of the region in which it operates has to find a way to tackle the inevitable challenge of making sense of large customer data sets. By doing so, businesses can better understand market needs and cater to the specific needs of their customers. The pharma company wanted to find suitable ways to accelerate growth and gain a winning edge in the global marketplace. They wanted to leverage Quantzig’s customer segmentation solutions to develop homogenous clusters and analyze the needs of their customers.
Using geographic customer segmentation solutions, they wanted to:
- Improve customer acquisition strategies with targeted customer segmentation
- Achieve better results by narrowing your customer focus and targeting distinct segments
Customer Analytics Solution Delivered
The customer segmentation solution offered by Quantzig’s experts helped the client to employ the best statistical techniques for establishing effective customer segmentation models. It enabled the client to analyze the behavior of the population by breaking them into segments. The advanced customer segmentation strategy also helped the client devise marketing strategies based on each customer segment which allowed the e-waste recycling company to identify potential customers as well as garner customer interest and subscriptions for their services.
Quantzig’s customer segmentation strategy also helped the client develop a customer-based marketing strategy to attain efficient investment allocation and ensure maximum and assured revenue generation.
To help the banking and insurance company tackle the above-mentioned challenges, our customer segmentation analytics experts adopted a comprehensive approach that comprised three phases. The first phase focused on a detailed analysis of the competitive forces and different customer groups across Europe. In the second phase, Quantzig’s experts focused on establishing meaningful customer segments by assessing demographic datasets available with the client. The third and the final phase revolved around developing a unique customer segmentation strategy that helped the client to create effective marketing strategies and unique communication strategy for each target audience.
Quantzig’s advanced customer segmentation analytics solutions can help you unveil meaningful and measurable segments based on customer needs and interests.
The solution offered helped the client to gain several benefits by establishing customer analytics as a true business discipline. Also, by leveraging Quantzig’s customer segmentation analytics solutions, the client was able to capture the full potential of their customer base by catering to their customers’ needs in a consistent, professional manner at every touchpoint. Additionally, they were able to gauge the profitability based on parameters such as customer lifetime value, customer churn rate, and customer loyalty.
On embarking on this customer segmentation strategy journey, the client uncovered new opportunities for their brand. Customer segmentation in banking helped the client understand the areas which they were previously not paying enough attention to. On leveraging customer segmentation in strategy, the client was able to identify new and profitable segments which helped them develop product offerings and service packages that met the needs of these segments. The client was able to consider the new segments’ emotional and functional needs to curate new value propositions that would resonate with the customers.
Quantzig’s market analytics team identified target customers for cross-selling and determined that cross-selling the new product would significantly increase individual customer spending and store profitability.
Our robust customer segmentation solutions recognized customers one on one and effectively implemented cross-sell across categories based on our flexible target feature. A “combined filtering” decision engine was used, which recommended items similar or deemed similar to the items that like-minded consumers had previously preferred based on a detailed view of customers’ transaction history and trends.
Finally, our analytics solutions driven by machine learning and AI-based models helped analyze customer ratings of products based on social media interactions and track other aspects of the customer lifecycle. This enabled our client to come up with the data-backed suggestion for the offerings that best complement the original purchase of the customers.
The Business Outcome
As a result of this engagement, the client was able to boast the following achievements in a span of six months –
- A well-rounded, data-driven customer segmentation strategy
- 9% increase in MROI
- 17% reduction in marketing spending
- 15% increase in customer acquisition
- Data-driven insights on competition
Why Choose Quantzig’s Customer Analytics Solutions?
Being one of the world’s fastest-growing analytics solutions providers, we are committed to delivering cutting-edge customer analytics solutions to help clients institutionalize data-driven decision-making and tackle complex customer experience management challenges. We’ve helped some of the world’s leading companies gain unparalleled access to smarter insights and analytically use customer data to drive positive business outcomes.