Customer Analytics in Retail Helped a Consumer Electronics Retailer to Witness a 2x Reduction in Customer Churn Rate – A Quantzig’s Success Story
The client is a leading consumer electronics retailer based out of Germany who is known for photographic and audio equipment. The company’s annual turnover is more than $ 23 million and business is spread across 17 different countries in Eastern and Western Europe. For companies in the retail industry to succeed in the long run, [...]
The client is a leading consumer electronics retailer based out of Germany who is known for photographic and audio equipment. The company’s annual turnover is more than $ 23 million and business is spread across 17 different countries in Eastern and Western Europe.
For companies in the retail industry to succeed in the long run, it is important to have an in-depth understanding of the customer base. Customer analytics in retail can offer a 360-degree view of the global customer base and provide valuable insights into churn prediction, potential customer segments, geospatial analysis. Also, it can help to gauge customer engagement with the business in real-time. Furthermore, by leveraging customer analytics in the retail business, companies can identify the factors affecting the bottom line and are responsible for churn majorly.
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The client, a renown electronics retailer, was unable to identify higher-value customers due to which they had to spend more time and resources in building loyalty programs to drive bottom-line results. Also, the electronics retailer wanted to improve its approach to customer churn analysis to reap maximum benefits from a well-segmented and thoroughly analyzed customer database. Also, the client was facing difficulties in approaching customers with tailored incentives or other contextual retention offers. This is when they approached Quantzig to leverage its expertise in offering customer analytics in the retail sector that would help them identify flight risk customers and factors driving their buying decisions.
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Solution Offered and Value Delivered
To help the consumer electronics retailer analyze and tackle their core business challenges, Quantzig’s team of customer analytics experts adopted a comprehensive three-step approach. In the first phase of the engagement, they focused on analyzing the customer journey by applying techniques of customer analytics in the retail segment. This method of analysis involved the application of both hierarchical as well as non-hierarchical data clustering techniques that further helped them to identify potential customer segments. The second phase of this engagement revolved around developing a robust customer lifetime value model to analyze customers’ behavioral traits and their transactional histories. The third and final phase of the engagement focused on the creation of a customized customer analytics dashboard to analyze factors for churn in real-time and suggest measures to help the client retain customers and improve loyalty.
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Customer analytics in retail empowered the client to analyze clickstream data obtained from disparate sources. A comprehensive framework of customer analytics in retail also helped the client to examine customer journey from three viewpoints- customer churn, loyalty and customer retention. The solution offered by Quantzig helped the consumer electronics retailer to identify efficiencies in business operations and boost customer satisfaction. Furthermore, the client was successfully able to distinct characteristics of the different customer segment and create a robust go-to-market strategy.
By applying customer analytics in retail, the client was also able to:
- Reduce customer churn rate by 2X
- Witness an increment of about $12M in annual income
- Identify gaps in customer data analysis and improvement opportunities
- Measure KPIs to drive business growth
Benefits of Customer Analytics in Retail Sector
How Quantzig’s Customer Analytics Solutions in Retail Can Help?
By leveraging Quantzig’s customer analytics in retail, companies can harness the ever-expanding customer data generated from POS terminals, mobile transactions, social media, and various other cloud-based platforms. This can help them to gain insights more quickly and eventually improve business decisions. With the help of our customer analytics solutions, retail companies can increase the relevance of offers and interactions and improve customer retention. Furthermore, Quantzig’s advanced customer analytics solutions offer valuable insights into customer behavior, attitudes, and sentiments that can be leveraged to improve customer relationships and drive loyalty.
Learn More about how customer analytics in retail can help analyze customer life cycles in order to improve budgeting, customer segmentation, and prioritization.