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Customer Segmentation

Customer Segmentation Engagement Helped a Pharmaceutical Products Supplier to Bridge the Price Gaps and Improve Customer Retention by 4x- Quantzig’s Latest Success Story

Quantzig’s multi-dimensional approach to customer segmentation analytics helped us better target our customers by understanding customer’s behaviors, needs, and values.

About the Client

The client is a leading pharmaceutical products supplier based out of the United States. The company sells its products in more than 12 countries all around  North America.

The Business Challenge

The rising skepticism over the ever-escalating prices on pharmaceutical products is compelling organizations to innovate by increasing their investments in R&D. As people are gaining more access to healthcare, prominent businesses are planning to manage healthcare funding and tender effective measures to narrow the price gaps between local and international brands. Along with urbanization, the rise of the aging population, changing lifestyles, and increasing incidences of chronic diseases will drive the growth of the pharmaceutical product space.

The client, a prominent pharmaceutical products supplier, wanted to stay ahead of the competitors and identify new products to meet customer expectations. The pharmaceutical industry client wanted to segment their customers based on their needs, behaviors, and demographics. Moreover, through an effective customer segmentation engagement, the supplier of the pharmaceutical product wanted to develop value-based segmentation to understand the revenue they generate. The primary concern of the client was to create and communicate targeted marketing messages to resonate with a specific group of customers.

Request a free brochure of our customer segmentation analytics solutions to gain comprehensive insights into the role of cognitive technologies in analyzing customer preferences in the pharmaceutical industry.

Based on the business requirements, the client collaborated with Quantzig  to leverage its expertise in offering customer segmentation analytics solutions to help them develop value-based segmentation to understand the revenue they generate.


Solution Offered and Value Delivered

Quantzig’s dedicated team of customer segmentation analytics designed a three-step approach to help the client tackle the core business challenge.

Talk to our analytics experts to know how we can help you develop more focused marketing messages to best fit each customer segment  in the pharmaceutical industry.

Our analytics experts adopted a three-step approach to help the client tackle their core business challenges.

Phase 1

The first phase of customer segmentation engagement focused on analyzing business objectives by collecting customer data from disparate sources and developing a detailed roadmap to help the client identify unique customer personas.

Phase 2

In the second phase of customer segmentation engagement, our analytics experts integrated and harmonized data to identify high-performing, profitable product categories, and understand the degree of alignment between the needs of the customers and their  offerings.

Phase 3

The third and final phase of the customer segmentation engagement focused on creating customer profiles based on the demographic consumption patterns. Also, our analytics experts leveraged predictive modeling techniques to help the client devise suitable marketing strategies and cater to the needs of different customer segments.

Gain limited time complimentary access to our analytics platform to analyze and identify the most lucrative opportunities in the competitive pharmaceutical market in real-time.

Business Outcome

The customer segmentation solution offered by Quantzig helped the pharmaceutical products supplier to identify ways to improve product and service opportunities and establish a better relationship with the customers. The solution also sought ways for the client to differentiate customers based on their economic value. Moreover, the client was able to predict and anticipate the most profitable customers and allocate their capital resources efficiently. The client was able to differentiate their products with that of the competitors’ offerings and improve the overall market share.

Quantzig’s customer segmentation analytics solution also empowered the client to:

  • Successfully bridge the price gaps
  • Improve customer retention by 4X
  • Enhance relationships with potential customer groups
  • Target niche customer segments

Want more tips on how customer segmentation analytics can help you improve the business outcome?

customer segmentation

Accelerating Pharma Growth Through Geographic Customer Segmentation – A Case Study by Quantzig

The client is a leading pharma industry player based out of the US. The pharma company wanted to segment their customers into different clusters based on consumption patterns, demographics, and other economic indicators, to develop specific growth strategies for each segment.

The Business Challenge

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

Want more insights on our customer segmentation analytics solutions? Request a FREE proposal right away!

Solution Offered and Value Delivered

We adopted a four-step approach to help the client address their challenges. The initial phase focused on data discovery followed by data cleansing and the creation of customer profiles and finally the validation of those profiles using advanced predictive analytics techniques.

Phase 1

In the first phase of this geographical customer segmentation engagement, we analyzed the objectives of the project, collected available data, and developed a detailed roadmap to address the core challenges faced by the client.

Phase 2

In the second phase of this geographical customer segmentation engagement, our analytics experts integrated, cleansed, and harmonized data obtained from disparate sources and then finalized the input metrics for the predictive model. We worked with the client to choose the specific variables which could be included in the segmentation algorithm. The objectives of our study and the output of the analysis determined the choice of variables.

Would you like to know more about the business benefits of customer segmentation analytics? Contact our analytics experts.

Phase 3

We created customer profiles based on consumption patterns, demographics, geography, and customer lifestyle. Hierarchical clustering analysis also helped us segment the customers into different homogenous groups based on their location and needs.

Phase 4

In the fourth and final phase of this geographic customer segmentation assessment, we leveraged predictive techniques to validate the clusters and devised suitable strategies to cater to the needs of different customer groups.

The geographic customer segmentation solutions offered also empowered the client to develop growth strategies, according to the geo-economic clusters that we had identified.

Why Choose Quantzig as Your Geographic Customer Segmentation Solution Provider?

Our portfolio of advanced customer segmentation analytics solutions empowers companies to devise suitable customer segmentation strategies to address the growing needs of their customers. Leveraging analytics to segment the customers into homogenous groups based on the geographic location puts you in a better position to make crucial decisions related to product development, marketing, and delivery of services.

Request FREE demo to learn how we can help you drive growth and profitability.

What are the Types of Customer Segmentation?

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Customer segmentation analytics

Customer Segmentation Analytics Opened up New Growth Avenues for a Banking and Insurance Company to Improve Customer Acquisition by 2X – Quantzig’s Latest Success Story

The client is a multinational banking and insurance services provider headquartered in Wexford, Ireland. 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.

Companies in the banking and insurance sector face several predicaments in developing a customer segmentation strategy to target the most profitable customer segments. 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.

Customer segmentation in banking can help you gain a 360-degree view of customer behaviors and devise suitable strategies to categorize them into homogenous segments. Request a FREE proposal to gain in-depth insights into our customer segmentation analytics solutions.

Business Challenge

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.

Get in touch with our experts to learn how you can allocate resources and extract maximum value from various customer segments with the help of customer segmentation analytics.

Solutions Offered and Value Delivered

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. Request a FREE demo below.

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.

The streamlined approach to customer segmentation analytics also helped the client to witness:

  • 2X improvement in customer acquisition rates
  • Significant decrease in customer churn rates
  • 42% increase in customer satisfaction levels

Benefits of Customer Segmentation Analytics

CUSTOMER SEGMENTATION ANALYTICS CS INFOGRAPHIC

To learn more about benefits of customer segmentation analytics, request more information right away.

response modeling

Response Modeling Techniques: Paving the Way for Predictive Marketing

Data analytics techniques have undergone dramatic advancements in recent years. This has significantly increased the value of advanced analytics techniques as strategic tools for businesses to achieve desired results. Therefore, companies across industries have started harnessing the power of advanced data analytics techniques to devise strong marketing strategies and boost profitability. The response modeling approach is one such technique that has helped companies to use the information they have mined over the past decade to make data-driven decisions.. Today enterprises leveraging this technology have a wealth of unique information, that in turn, is helping them to become “customer-centric” organizations and gain competitive advantage. Response modeling has the potential to help businesses tap into their customer data and offer useful insights for strategic and tactical marketing decisions.

Our response modeling solutions help companies improve customer response rates by targeting potential prospects who are most likely to react to a campaign. Request a FREE proposal today to gain in-depth insights into our analytics services.

How can an effective response modeling framework help in predicting customer behavior?

Response modeling approach helps businesses to take into account the interaction of different data elements and identify the people on a list who are most likely to take the desired action. Also, response modeling approach assists companies in predicting certain type of customer purchasing behavior and the likelihood of churn. As a result, companies can optimize their marketing strategies such as email send frequency, sales staff time, and discounts.

Quantzig’s analytics experts help organizations with data-driven algorithms to understand customer attributes that may influence response rates. Get in touch with them right away!

Using advanced analytics techniques like response modeling, organizations can predict customer buying patterns, prevent fraud and make crucial business decisions. With insightful statistics and advanced data analysis techniques, companies are starting to develop methodologies to make scientific,  data-driven predictions as to what their customers are likely to do in the next buying season. Furthermore, response modeling helps in developing an analytical framework that can help to forecast the impact of a change in market strategy or the launch of a new product or service that is closely related to demographic biases of customers.

Request a FREE demo now to know how our customized analytics solutions can help you understand customer behaviors, identify friction points and prioritize key drivers of customer satisfaction.

Quantzig’s Advantage

Quantzig’s response modeling capabilities help companies to develop proactive targeting frameworks to understand customer responses  to individual tactics, an order of exposure and both combined. At Quantzig, we understand the difference a robust response modelling approach can bring to your business. Our solutions help you identify the right tactic, order and frequency to target the customers to maximize returns. By leveraging analytics solutions, businesses can gain end to end visibility into their customer’s journey and identify the right opportunities  to boost sales.

To learn more about the benefits of response modeling, request for more information below.

behavioral segmentation

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.

Our analytics solutions help companies gain accurate insights into the behavior of their customers and marketing efforts. Request a FREE proposal to know more.

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.

Request a FREE demo to know how our analytics solutions can help you continuously track your consumers’ behavior.

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