Boosting Sales and Profitability for a German Pharmaceutical Company with the help of Customer Segmentation Analytics – A Quantzig Success Story

The client is a German pharmaceutical company that majorly focuses its efforts on oncology, metabolism, immunology, respiratory disease and central nervous system diseases. The company has a strong market presence in 12 countries across the globe.

With the pharmaceutical environment becoming extremely competitive and dynamic, companies in the pharmaceutical industry have also shifted their approach towards consumerism. To stay ahead of the curve in today’s business landscape, pharma companies need to effectively target promotional activities toward consumers who are most likely to respond to their marketing efforts. Pharma companies need to get away with traditional marketing approaches to reach consumers in a rapidly changing healthcare environment.

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Business Challenge

The client was facing serious challenges while expanding their business overseas. This was mainly due to their inability to classify customers in the new market based on their needs and specific behavioral and demographic patterns. The pharma company was not able to achieve the desired results through their existing promotional campaigns. So, they approached Quantzig to leverage its expertise in offering customer segmentation analytics to better understand and segment their customers based on their value. Also, by leveraging customer segmentation analytics, the client wanted to tap hidden business opportunities within untapped customer segments in the new market.

Our customer segmentation analytics experts help companies achieve far more accurate insights regarding customer preferences and help develop forward-looking perspectives. Get in touch with them right away.

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Solution Offered and Value Delivered

To help the client tackle their challenges Quantzig developed a holistic customer segmentation analytics framework to improve their customer segmentation strategies and target new consumers through personalized marketing campaigns. The analytics experts at Quantzig also leveraged robust statistical tools and response modeling techniques to glean actionable insights into various customer segments. Consequently, the client witnessed a significant improvement in the response for their personalized campaigns and achieved an increase of 23% in sales and profitability.

By using Quantzig’s multi-dimensional approach to customer segmentation analytics you can better target your customers by understanding their behaviors, needs, and value. Request a FREE demo to know more.

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Quantzig’s customer segmentation analytics solutions also helped the client to:

Identify high-performing, profitable product categories, and understand the degree of alignment between the needs of the customers and their offerings
Better target their customers by understanding their behavior, needs, and value
Achieve an unparalleled degree of customer-centricity and unique value propositions

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Global Pharmaceutical Industry Challenges

PHARMACEUTICAL INDUSTRY

A European Fashion Retailer Improved Campaign Effectiveness and Sales by 3X Using a Retail Customer Segmentation Strategy

Owned by a Swedish retail giant, our client is one of the leading fashion retailers in Europe. The client has over 200 stores spread globally with over 50+ stores located in Europe.

The Business Challenge

Most retailers today categorize their customers into different groups based on demographic data and behavioral patterns. However, a major concern revolves around the use of top-level demographic data as it often offers inaccurate insights that fail to capture deeper insights required to analyze customer demand.

What does your average customer prefer? Though it’s a simple question that every retail industry player must address, the growing customer needs and preferences have made it difficult to pin down a comprehensive answer. In reality, it is a major challenge as your customers are unique and trying to find the common elements which unite them to define your ‘average customer’ inevitably leads a vague picture of the customer base.

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Owing to the competitive retail scenario there exists a growing need to address customer demands and cut down costs by better understanding the focus groups. Facing similar challenges, our client was looking at leveraging custom-built retail customer segmentation models to enhance the efficiency of its in-house segmentation solutions and increase customer engagement by implementing a truly one-to-one retail customer segmentation strategy.

Solution Offered and Value Delivered

To help the retailer automate the marketing messages and boost conversion rates we put together a team of customer analytics experts who designed and implemented an effective retail customer segmentation strategy by integrating in-store data with customer data sets. Adapting to the new retail customer segmentation strategy not only helped them automate personalized communications but also helped them improve marketing campaigns and increase sales.

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Retail Customer Segmentation Engagement- Business Outcome

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Customer Segmentation Analytics Helped a Major Telco to Tap into Distinctive Customer Segments to Boost Loyalty and Sales

A European telecom giant which offers a full range of telecom services wanted to boost ROI and drive sales across regions by improving its visibility among loyal customers. To do so, the telecom giant decided to target the most profitable customer segments through promotional campaigns. Having failed to achieve the desired results through promotional campaigns, they approached Quantzig to leverage its expertise in customer segmentation analytics to better understand and prioritize customers based on their value.

The Business Challenge

With rapid advancements in technology changing the telecom landscape, players in this sector are poised to witness increasingly tough times. In fact, the telecom industry is set to face major digital disruptions over the next few years, making it crucial for businesses to reimagine their business models, rebuild a market position, and offer innovative solutions to its customers. Though several opportunities can be unearthed using customer segmentation analytics businesses are not well equipped to identify and capitalize on such opportunities.

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With the growing competition, the telecom major was seeking to improve its churn rate and customer loyalty. To achieve this they decided to examine the customer segments in order to identify and target the high-potential customer groups. By challenging the existing customer segmentation structure, the telecom major wanted to sharpen its customer segmentation analytics capabilities by raising the following questions regarding the benefits of leveraging customer segmentation analytics:

• Do the existing customer segmentation strategies need to be revamped?
• Do the existing customer segments need restructuring?
• Are there hidden business opportunities within untapped customer segments?

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Solutions Offered and Value Delivered

To help the client address their challenges Quantzig developed a comprehensive customer segmentation analytics framework to help them improvise their customer segmentation strategies and target new users through personalized marketing campaigns. We also leveraged propensity modeling techniques and robust statistical tools to glean comprehensive insights into various customer segments. As a result, there was a major improvement in the response for the personalized campaigns and the client achieved a 60% increase in customer loyalty when compared to the previous year.

The customer segmentation analytics solutions also helped the client to:

Redesign their customer segmentation approach from demographic segmentation to customer needs-based segmentation
Tighten characteristics of the existing customer segments
Recognize new, distinctive customer groups

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What is customer segmentation analytics?

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Behavioral Segmentation: A Five-Minute Guide to go from Novice to An Expert

What is behavioral segmentation?

Behavioral segmentation is defined as the process of dividing the total market into smaller homogeneous groups based on customer buying behavior. This approach of market segmentation focuses more on the distinct actions of customers with regard to the product or service and less on the identity of customers. Behavioral segmentation allows you to categorize your existing and potential customers into smaller segments based on their purchase behavior. The main objective of behavioral segmentation is to identify niches and address their needs that are believed to be similar. This helps marketers to develop marketing strategies for every individual segment and create products to cater to their needs.

Market segmentation can help you analyze various customer groups and gain a competitive edge. Get in touch with our experts to know more.

Why is behavioral segmentation important?

With the competition getting fierce every day, companies are striving to win dynamic markets by designing and producing personalized products to serve the needs of their customers. Every consumer is unique, and this uniqueness is somehow based on their backgrounds and needs. This is the reason why they develop different habits in terms of buying specific products. Therefore, it becomes important for companies to aim at serving their customers based on their buying behaviors. This is where behavioral segmentation comes into the picture. One of the most important reasons why behavioral segmentation is important is because different individuals have different preferences and with this approach, businesses can yield higher profits than approaching different groups with the same marketing strategy.

BEHAVIORAL SEGMENTATION

Behavioral segmentation methods

Purchasing Behavior

This is one of the best behavioral segmentation methods that help to identify trends in customers behavior during the process of purchase decision-making. Analyzing the purchasing behavior of the customers can help in understanding how different individual approach the purchase decision, the barriers they face in the purchasing process. Also, by analyzing these entities and the relation between them, businesses can determine the moments in which customers are most likely to make a purchase.

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Occasion or Timing

Based on timings and occasions, the propensity of consumers to make purchases fluctuates. There are many customers who buy on specific occasions while there are others who buy on regular personal occasions and then there are a few who buy on rare personal occasions. Understanding when a group of similar customers is highly likely to make a purchase can help companies tailor their offers and maximize their profits. Also, it is considered to be one of the most beneficial behavioral segmentation strategies for businesses in terms of gaining customer loyalty.

Usage Rate

It is very important for businesses to know how often a customer uses your product or service. This can help companies in tailoring marketing initiatives and offer every individual a personalized customer experience. With the help of this behavioral segmentation method, businesses can easily identify their most reliable customers who provide them with a bulk of consumer-generated revenue. Also, it can help in targeting such customers who make purchases regularly but not at frequent intervals. This component of behavioral segmentation also helps in identifying customers who don’t make purchases unless some discounts are offered by the company.

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Weekly Round-Up: 5 Customer Segmentation Success Stories That You Wouldn’t Want to Miss Out

LONDON: Quantzig, a leading analytics services provider, has announced the release of their new storyboard on the importance of customer segmentation. These success stories explain how customer segmentation analysis can help companies to devise customized approaches that satisfy the needs of different customer groups and drive customer loyalty and profitability.

With the proliferating marketing platforms today, customer segmentation has become a pre-requisite for those who wish to improve sales, reduce attrition, and boost profitability. Customer segmentation analysis is a key that helps companies to comprehend their customers buying preferences and influence their behavior. By using a robust customer segmentation strategy, businesses can gain actionable insights into various customer groups. Also, leveraging such insights can help businesses to improve customer retention and loyalty.

Quantzig’s customer segmentation analysis solutions have helped several Fortune 500 companies to precisely predict and deliver relevant offers that attract rather than alienate customers. Below, we have summarized some of Quantzig’s success stories that highlight how customer segmentation analysis has helped companies to gain a leading edge in today’s competitive marketplace.

Our analytics experts can help your business grow using targeted customer segmentation analysis solutions. Want to know how? Get in touch right away!

#1. How customer segmentation analysis guided a leading manufacturer in designing a new product launch strategy? Understanding the behaviors of the existing and potential customer base is not very easy for businesses. Are you finding it difficult to understand customer behaviors? If yes, then take a look at our latest success story where a leading manufacturer faced a similar issue and approached Quantzig to leverage its expertise in offering customized analytics solutions to address customer-centric issues. Our analytics experts adopted a comprehensive three-pronged approach to help the client develop a new customer segmentation strategy and predict the future value of customers. Want to know more? Here is the full story.

Designing a New Product Launch Strategy with the Help Customer Segmentation Analysis – A Case Study by Quantzig

#2. Quantzig’s customer segmentation model helped a retailer excel in the competitive landscape: Quantzig’s customer analytics solutions are revolutionizing the way businesses operate. Don’t you agree? This success story is an excellent example. A Fortune 500 electronics retailer was facing issues in managing attrition rate and preventing its potential customers from opting out of the conversion funnel. They were looking for solutions to predict customer behavior and effectively engage them well in advance for improving sales. Quantzig with its team of analytics experts built a consolidated data visualization platform and leveraged the use of analytical dashboards for effective customer segmentation analysis and decision-making. This helped the client to analyze the key drivers of customer satisfaction and devise suitable strategies to counter the decline in sales. Read the complete story here.

How Customer Segmentation Helped an Electronics Retailer To Gain a Leading Edge in the Smart Wearables Segment

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#3. Customer segmentation solution enhanced customer retention rate by 20% for a fintech firm: Developing a robust marketing strategy to target specific customer segments is essential if you are trying to establish your business in any specific region. A US-based Fintech company was finding it difficult to segregate the customers in terms of need-based and value-based segments in the Asian market. Quantzig’s customer segmentation solution helped the client to discover the value of each segment to tailor their marketing efforts. Furthermore, these solutions helped them maximize cross and up-selling opportunities and encourage customers to subscribe to more products and services. As a result, the client realized a significant improvement in their customer retention rate, which increased by a whopping 20%.

Customer Segmentation – How A Leading Fintech Industry Player Enhance Customer Loyalty and Retention Rate By 20% in the Asian Market

#4. How can customer segmentation solutions improve business operations? Are you wondering how to identify and implement appropriate customer segmentation models to profile and retain valuable customers? Our customer segmentation solutions can help as it helped one of the leading vegan food distributors based out of the United States. The company was facing issues in predicting the total future value of its business and approached Quantzig to leverage its customer analytics solutions. Our experts helped the client to gain an in-depth understanding of how their best customers are segmented within the global food industry and enabled them to scale their business operations. Here is the link to the full story.

Customer Segmentation for A Leading Vegan Food Products Manufacturer Helps Scale Their Business Operations

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#5: Customer segmentation models helped a client to win over the global customer groups: Predicting the profitable customer groups is a daunting task for businesses. But customer segmentation analysis can help in dealing with such issues efficiently. This is clearly evident in this success story where the client, a warehouse logistics solution provider, was facing similar predicaments. Quantzig’s customer segmentation solutions helped them to develop a well-aligned business plan to deliver sustained growth and empowered them to attract and win over global customers.

Customer Segmentation Helps a Warehouse Logistics Solution Provider Win Over the Global Customer Groups

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Customer Churn Analysis: The Key to Boost Customer Retention Rates for Businesses

customer churn analysis

Companies across industries spend most of their resources, time, and efforts on customer acquisition, despite knowing the fact that the cost of retaining an existing customer is much lower than acquiring a new one. Therefore, customer retention should be the top priority for companies. Also, for companies analyzing factors responsible for customer churn and estimating the risk associated with individual customers are both important components that help in devising a data-driven customer retention strategy. Customer churn analysis acts as a key to bring these elements together and offers insights that drive smart decision making across an organization.

Banks, telecom companies, insurance firms, and energy services companies, are some of the businesses that often use customer churn analysis as one of their key business strategies. With the rise of businesses based on recurring revenue models, customer churn has become an important business metric for almost all companies.

Are you finding it difficult to build a predictive customer churn model? Churn analytics solutions may hold the key to success. Get in touch with our experts to know more.

Here are a few important reasons that make customer churn analysis important:

Customer churn analysis prevents revenue loss by saving extra costs in marketing and re-acquisition
The probability of selling to an existing customer is a lot higher than to a new prospect
Measuring the customer churn rate helps in calculating the customer lifetime value
Customer churn analysis helps in measuring the company’s health and long-term prospects
Customer churn analysis examines the rate of improvement in customer retention
Helps to identify customers segments that are best suited for your products or services

Steps to Enhance Your Approach To Customer Churn Analysis

Step #1: Calculate basic churn rate

The first step in customer churn analysis is to calculate the customer churn rate. There are several ways to calculate the churn rate. Customer analytics tools can help in calculating churn rate directly in real-time. This calculation not only helps in getting the quantitative metric of churn rate but can actually visualize it through the customer journey, understanding precisely the factors that lead to customer churn. Churn rate can be analyzed properly by understanding churn, which is of three types short-term, mid-term, and long-term. This duration is nothing, but the time period customers have been active before they decide to discontinue and cancel the service. To keep your customers engaged for the long-term, you need to reinforce the core value of your product or service consistently.

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Step #2: Identify at-risk customers to reduce churn

Prevention is always better than cure, don’t you agree? Some customer segments, and more importantly, some customer behaviours predict churn more clearly than others. Customer churn analysis helps to identify these behaviours efficiently in real-time. This further helps in adopting measures to make these at-risk customers stay. Companies are leveraging customer analytics solutions like customer churn analysis that helps them enhance their ability to identify at-risk customers and thereby reduce customer churn rate. Additionally, customer churn analysis offers a data-driven understanding of customer preferences and helps to find the best way to reduce friction in specific situations. Furthermore, this can help companies to easily prioritize opportunities for improvement.

Step #3: Focus on the entire customer journey

Customer churn analysis can provide optimum results only when the complete customer journey and experience have been analyzed well. Different customers have different experiences and customer analytics solutions can help you visualize each of them, the various touchpoints encountered, and the actions that are taken from there. If you do not analyze the entire customer journey and only focus on the last interaction, it can result in deriving inaccurate and misleading conclusions which will do nothing to stem the tide of leaving customers. Customer churn analysis can pinpoint the drivers of customer satisfaction in a way that traditional analytics solutions cannot. By analyzing and quantifying what matters most to customers, companies can consistently provide better customer experience and measure their impact on customer churn rate.

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Step #4: Discover your most profitable customers and focus on retaining them

All customers are not equal, and while you may want to retain all, resources are not unlimited. So, you need to shift your focus on the most profitable ones first. Customer analytics solution plays a big role in this endeavour by providing a quantitative and detailed picture of the entire customer journey. It helps in customer churn analysis by interpreting how customers interacted with the product and the problems they faced at every step along the journey. Using customer churn models, companies can group their customers into segments defined by a readiness to leave, profitability, and their response to offers. This can further help in reducing customer churn rate significantly.

Step #5: Engage with your customers at optimal times

Companies have the tendency to communicate with customers when they either want to upsell or when the customer is breathing fire. But for better customer churn analysis, companies can use several other techniques as suggested below to proactively and consistently interact with their customers:

Satisfaction survey – Companies can conduct short, open-ended customer surveys which let customers voice their opinions in a convenient and easy manner.
Social media – Customers spend most of their time on social channels. So, companies can use different social media channels to analyze their opinion and response to their product and brands.
Feedback bar – Companies can incorporate a feedback bar into products and mobile apps, so that it becomes easy for customers to ask questions, comment on product’s features and give their feedback.

Designing a New Product Launch Strategy with the Help Customer Segmentation Analysis – A Case Study by Quantzig

The client is a tech giant based out of Canada. With years of expertise and specialization in the smartphone segment, the client wished to assess customer perceptions through a customer segmentation strategy, prior to the launch of their new product.

The Business Challenge

It’s no secret that for businesses today, a few customers are more valuable than the others. But to truly understand the customer and succeed in the long run, it’s essential to distinguish these differences and devise customized approaches that satisfy the needs of different customer groups. Today, as tech giants all over the world compete to drive customer loyalty and improve profitability, what differs is how well each of them comprehends their customers buying preferences and how they leverage this information to influence their behavior.

Customer segmentation analysis turns out to be the key to building that understanding. Through customer segmentation analysis businesses can not only gain detailed insights into various customer groups but can leverage such insights to improve customer loyalty and retention. Also, with the proliferation of marketing platforms available today, customer segmentation is more of a necessity for those who wish to grow sales, reduce attrition, and increase profitability.

Contact our customer analytics experts to know how we can help your business grow using targeted customer segmentation analysis solutions.

The client, a leading tech giant was planning a new product launch strategy with respect to the 5G spectrum and its related opportunities in Canada. Prior to this launch, the client methodically wanted to understand their brand’s perception and how they could leverage new technologies to understand customer sweet spots that are specific to 5G and the foldable screen technology.

Top Challenges Faced by the Client

The three-fold challenges faced by the client included:

Problem Statement 1

The client needed to adopt a sophisticated approach to understand the behaviors of their existing and potential customer base.

Problem Statement 2

Though the new product launch strategy looked promising, the client had to gain in-depth insights into customer needs and preferences. Also, they wanted to develop a customer segmentation strategy to maximize the performance of all customer segments.

Problem Statement 3

The client also needed to optimize marketing strategies and engage customers through the right channel. This was a major predicament as it required the client to devise a long-term, holistic approach encompassing enterprise-level capabilities, technology, analytics, and customer data management skills.

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Solution Offered and Value Delivered

To gain the desired insights and to support the information needs of the client, our customer segmentation analysis experts at Quantzig adopted a comprehensive three-pronged approach.

Phase 1: Understanding customers

The initial phase of this customer segmentation analysis engagement focused on analyzing the different customer behaviors and their preferences, in order to divide them into different groups based on their behavior and preferences.

Phase 2: Analyzing brand perception

The second phase of this customer segmentation analysis engagement revolved around analyzing the customer’ brand perception and their

Phase 3: Aligning marketing communications with a new customer segmentation strategy

The primary objective of this customer segmentation analysis engagement was to develop a new customer segmentation strategy to analyze different customer groups and offer tailored solutions to meet their needs. The customer segmentation analysis solutions not only offered a snapshot of the current value of their customers but also helped them predict the future value of a customer.

Customer Segmentation Analysis Steps

customer segmentation analysis

Customer Segmentation Made Easy with Quantzig's Customer Segmentation Analysis Solutions

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By acquiring deeper insights around their customers, the client was better positioned to develop tailored marketing strategies that aligned to their customer behaviors and preferences. Also, by leveraging customer segmentation analysis solutions in conjunction with behavioral models the client successfully gauged the impact of segmentation over a longer horizon, along with the time it took to influence customer behaviors and drive meaningful results.

The customer segmentation analysis solution also enabled the client to:

Effectively deploy marketing dollars to maximize ROI from the most profitable customer segments.
Leverage a more cost-effective marketing approach through tailored strategies, aimed at increasing sales, improving cross-shopping, and driving profits.
Gauge the effectiveness of marketing campaigns by determining which offers and channels drive the best performance for each customer segment.