Segmentation, ROI

1. Investment Proposal
Nitansh Gupta Bhavnita Naresh Kumar Anh Le Ankita Lodhavia Harrison Ngo Liqiang Shen Vikalp Upadhyay
Group 3

2. Scoring System
RFM Combined Score Segment
3 - 5 Platinum
6 - 8 Gold
9 - 10 Silver
11 - 12 Bronze
Recency - Frequency - Monetary Analysis
Threshold SKU Segment
80% of total
revenue
Segment A
The next 15%
of total revenue
Segment B
The next 5% of
total revenue
Segment C
ABC Analysis

3. Invest $5M
Where to Invest?

4. Investment Plan

5. Improve Platinum
Customers Retention
Convert Gold Customers to
Platinum Segment
New Customer
Acquisition
● Pricing Specialization
through Loyalty Programs
● Conduct Customer
Feedback Surveys
● Automation to re-engage
customers
● Regular communication
HOW?
● Improve customer
experience (Event Marketing,
User-generated-content, …)
● Run Marketing Automation
● Account-Based Marketing
(DemandBase)
● Video marketing
investment
● Search Engine Optimization
● Optimized landing pages
HOW? HOW?
40% 20%40%
Investment Plan

7. Return on Investment

8. Questions?

9. Appendix

11. Customer Scorecard
Recency Score
1 - 24 days 1
25 - 111 days 2
111 - 412 days 3
> 412 days 4
Frequency Score
> 6 orders 1
3 - 6 orders 2
2 - 3 orders 3
1 - 2 orders 4
Monetary Score
> $613 1
$128 - $612 2
$17 - $127 3
< $17 4
RFM Score Segment
3 - 5 Platinum
6 - 8 Gold
9 - 10 Silver
11 - 12 Bronze

12. Product Scoring
ABC Analysis
Threshold SKU Segment
80% of total
revenue
Segment A
The next 15% of
total revenue
Segment B
The next 5% of
total revenue
Segment C

13. INVESTMENT PROPOSAL
Improve Retention of the Gold and Platinum segments and Acquire new customers
● Improve customer experience (Converting Gold to Platinum)
○ Train sales reps
○ Conduct customer satisfaction survey (Net Promotion Score)
○ Improve e-commerce
● Loyalty program (Provide)
○ Pricing specialization ?!?
● Invest in marketing automation: nurture current customers
○ Transition to “Hardware-as-a-Service”
○ Obtain updated software