A global retail chain was looking to shift to a customer-centric marketing strategy
WNS adopted a value-based hierarchical approach to strategically segment the client’s entire loyal customer base
The retail chain effectively targeted the strategic customer segments with hyper-personalized marketing promotions
Companies looking to sustain customer loyalty should drive meaningful engagement through personalized and compelling messages. This requires granular and pertinent customer segmentation based on a thorough understanding of changing personal preferences, purchasing behaviors and recent actions.
It was essential to drive hyper-personalized marketing promotions to shift from a product-centric marketing strategy to one based on customer preferences. This could be done only by analyzing customer behavior and purchasing patterns, and strategically segmenting existing customers. The company partnered with WNS to segment customers and lay the foundation for tailored campaigns and loyalty programs.
It was important to have a holistic understanding of the attributes that defined the different customer types within the consumer base. WNS focused on the key metric of ‘total value delivered per customer’ across the entire segmentation exercise. Instead of relying solely on statistical methodologies, a hierarchical approach to segmentation was deployed incorporating the client’s desired business objectives at every stage of the exercise.
Through a highly iterative process, WNS strategically segmented the entire loyal customer base on the value they delivered to the client. Short and long-term strategic business goals specific to each segment enabled the client to derive greater value from them over time. Using an analytics model, WNS created an extensive ‘Playbook of Segments’ that provided the client:
18 strategic and granular customer segment profiles
Primary and secondary business objectives
Marketing dos and don’ts for each segment
That the Playbook of Segments helped in designing and implementing effective marketing calendars for each customer segment.
The solution enabled the client to:
Create well-defined, strategic customer segments that continue to serve as the cornerstone of targeted loyalty marketing programs
Better understand the customer base and significantly boost responsiveness to consumer preferences
The playbook continues to help the company measure incremental business revenue from each campaign, and analyze customer migration patterns across various segments.
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16 November 2022
02 November 2022
Banking and Financial Services
15 June 2022