Helping an apparel retailer define a winning marketing strategy with advanced analytics
In this client case Kanvic helped a leading apparel retailer define a winning marketing strategy by applying advanced analytics.
Client Context
-
Our client is a leading player in the apparel retail business.
-
Like most retailers in India, our client was on the lookout for opportunities to leverage the customer data it had collected over the years through its loyalty card programme.
-
Our client was using only a limited amount of data, which was insufficient to develop a marketing strategy that would discriminate between different customer segments.
Kanvic's approach
Developed a more relevant segmentation pattern
We used advanced analytics to mine our client’s existing customer data to develop a more meaningful segmentation pattern. As a result they could assign each customer to one of 7 new segments.
Gained strategically important insights into customer behaviour
Our analysis gave the client powerful new insights showing how its customer portfolio was significantly under-leveraged. In particular, how revenue generation was highly dependent on a small set of customers.
Designed a targeted marketing strategy
Using the insights gained, we defined a new four-pronged marketing strategy, with targeted segment-wise strategies aimed at optimising the customer portfolio.
Client benefits
Increased sales from existing customers by 10%
As a result of the new analytics driven marketing strategy sales from existing customers grew by 10%.
Improved return on marketing investment by 3%
The new segmentation model and the more targeted marketing promotions improved return on marketing investment from 15 to 18%
Increased customer loyalty
In the 12 months following the implementation of the new marketing strategy, the repeat purchase rate grew from 11% to over 15%.
