Clear Returns CEO Vicky Brock, delivered a workshop to the Retail Forum 2015, helping retailers understand how the can use segmentation approaches to understand shoppers and maximise customer lifetime value

1. Presented by Vicky Brock, CEO
May 2015

2.  Are you currently targeting different
groups of customers in different
ways?
 What do you want to achieve from
this session?
 What challenges are you facing?

3.  Why segment customers?
 What are the commercial benefits?
 How do you create a relevant and workable segmentation?
 How do you make the segmentation work and endure in the organisation?

4.  What are the commercial benefits?
Retain
more
revenue
Cut costs
and
wastage
Improve
customer
experience
& lifetime
spend
Optimise
profits
 Because not all customers are equally profitable

5.  What are the business goals?
“... increase revenues net of returns, reduce returns ...”

6.  What are the customer behaviours associated with the goal?
18-25
26-35
36 - 54
55+
So what?
This is poor segmentation - inactionable
Fraud - returns 95%
of all items bought
Disappointed loyal
- returns under
20% of items + high
attrition rate post
return
Explorer - Returns
21% - 40% of items
+ low attrition rate
post return
Overbuyer - returns
between 75% and
94% of all items
Good segmentation
Actionable

7.  When you know the behaviours you can find the right data :
 Sales
 Satisfaction
 Order history (recency, frequency, value)
 Payment type
 Channel type, devices used

8. • Aligned to goals
• Embodying or affecting behaviourRelevant
• Sufficient commercial impact
• Enough individuals to justify time and costs of targetingSizeable
• Distinguishable from other segments
• Can be served by an equally differentiated marketing or service
strategy
Distinct
• Can be identified and serviced efficiently
• Reachable by marketing channels currently or potentially availableAccessible
•Has a specific, consistent and measurable characteristicsIdentifiable

9.  Aligned to goals and KPIs
 Senior champion
 Customer advocate
 Quick wins
 Show the money £££££ (fear & greed!)

11.  The power of faces –
personas, customer
profiles, customer
stories ...
 Ongoing measurement
& results sharing ...
 Show the money ££££
& the cost of doing
nothing ...

12. Vicky Brock, CEO
vicky@clearreturns.com
@clearreturns @brockvicky