Challenge

Amidst the development of centralized marketing capabilities, a national retailer faced a significant challenge: a lack of detailed customer insights. The absence of purchasing data linked to individuals limited their ability to leverage targeted and personalized marketing strategies, thus restraining potential revenue growth.

Approach

With the retailer's recent initiation of a loyalty program in seven pilot stores, an opportunity to collect valuable purchasing data presented itself. I was brought in to transform this data into actionable insights through a strategic approach:

1. Analytical Segmentation: I utilized the pilot program's purchasing data to develop an analytically derived cluster segmentation, offering a nuanced understanding of the retailer's customer base.

2. Data Enrichment: To deepen our understanding of each segment, I integrated additional research and third-party data, enriching the segments with broader consumer insights.

3. Segment Archetypes: Creating relatable archetypes for each segment, complete with unique names, made the insights easily understandable and actionable across the organization.

Results

This new segmentation framework became the foundation for a highly targeted CRM program. By deploying tailored messages and offers aligned with the identified customer segments, the retailer experienced a significant increase in store visits and basket sizes. This strategic pivot not only enhanced customer engagement but also drove substantial revenue growth.

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