Customer Segmentation Strategy for an E-Waste Company to Achieve Market Growth and Customer Retention

Aug 24, 2021

What You Can Expect from This Case Study

  1. E-Waste Recycling Industry Overview
  2. Customer Segmentation Strategy in the E-Waste Recycling Industry
  3. About the Client
  4. How the Client found Quantzig
  5. The Challenge
  6. Solution Delivered
  7. The Business Outcome
  8. Why Choose Quantzig’s Customer Analytics Solutions?

Highlights of this Customer Segmentation Case Study

ClientA leading e-waste recycling company headquartered in Germany
Business ChallengeTo devise a reliable customer segmentation strategy that improves conversions and MROI
Solution Impact9% increase in MROI, 17% reduction in marketing spending, 15% increase in customer acquisition

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  • Client: A leading e-waste recycling company headquartered in Germany
  • Need:  To devise a reliable customer segmentation strategy that improves conversions and MROI
  • Impact of Quantzig’s marketing mix strategy: 9% increase in MROI, 17% reduction in marketing spending, 15% increase in customer acquisition

Tap into Quantzig’s extensive domain knowledge and expertise in customer segmentation analytics to generate actionable customer insights. Speak with our analytics experts to learn how we can help you.

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.

Request a free proposal to know how Quantzig’s cutting-edge customer segmentation strategy can help you achieve customer retention and boost your market growth.

Customer Segmentation Strategy in the E-Waste Recycling 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.

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.

The Challenge

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.

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.

The Business Outcome

As a result of this engagement, the client was able to boast the following achievements in a span of six months –

  1. A well-rounded, data-driven customer segmentation strategy
  2. 9% increase in MROI
  3. 17% reduction in marketing spending
  4. 15% increase in customer acquisition
  5. 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.

Request a free proposal to leverage statistical approaches and robust customer analytics solutions to accelerate your journey from data to decisions.

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