ID Top 5% of Customers Who Drive a High Percentage of Your Business
Identified Multiple, Distinctive Segments
6 unique segments were identified, including the ‘best customer’ and ‘high-potential’ segments.
Rebuilt Marketing Strategy
Changed overall marketing strategy to focus on those two segments, driving increased revenue and ROI.
Achieved Fantastic Results
Increase in comparable store growth (+40% revenue during key selling period), revenue stability, and customer retention.
Increased competitive pressure and pricing sensitivity led to inconsistent store performance. Growth in online and mobile shopping was depressing margins and stealing customers.
Marketing and management needed to understand the key differences influencing customer behavior in order to impact customer loyalty and retention.
LiftPoint Consulting appended customer transaction information with third party variables (demographic and psychographic). That information was then segmented, which identified a large revenue concentration within a small percentage of customers. High growth potential customers were also identified. The difference between segments were highlighted (eg. online/offline, product mix, customer ensure, marketing response performance etc.), and customer strategies were developed to optimize performance within the Best Customer and High Potential Customer segments exclusively. Controls groups were established to ensure results were meaningful and scaleable.
Percent of Sales 1% of Customers Delivered, as a Segment
Average Number of Data Sources Referenced in Segmentation Projects
Average Growth in Customer Value
- Customers in a Typical Best Customer Segment 15% 15%
- Average Increase in Sales 40% 40%
- Increase in Customer Segmentation 10% 10%
- Increase in Marketing ROI 28% 28%
LPC has discovered that the biggest challenge with customer segmentation is not the analysis but the change management and adoption of the new segments. Our segmentation recommendations include a series of “quick wins” that are measurable pilot programs to rest the insights. You choose your CRM software for execution and we are there to help you turn our insights into a positive return on your investment in less than 6 months. We are there to help you show tangible vaue to the organization for you segmentation investment.
Interested in seeing these results with your own customers?
Let’s get together and chat through how a segmentation can help you improve your ROI, and ultimately your bottom line.