Kanvic helped a leading apparel retailer define a winning marketing strategy by applying advanced Analytics to existing customer data.

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Using analytics to build a retailer’s marketing
strategy
Kanvic consulting
Case study

2. Kanvic helped a leading apparel retailer refine its marketing strategy by
leveraging existing loyalty card data
Leveraging customer data
to improve a retailer’s
marketing strategy
Kanvic helped a leading apparel retailer define a winning marketing strategy
by applying advanced Analytics to existing customer data.
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 program.
Before the project, 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 data Analytics experts looked for meaningful patterns between hundreds of thousands of
customer data points to identify the most relevant customer segments for our client.
These segments were used to further support our client in devising a winning marketing strategy.

3. Our client approached us to look at how its existing customer data could be
better leveraged
5 years worth of
data collected for
thousands of
customers and
transactions
Used by client
Unused by client
Lifetime value
Purchase history
Geographic location
Demographic profile
Basket composition
Our client was sitting on a gold mine of customer data but was only using a small fraction of it
Usage of existing customer data by our client

4. We helped our client mine existing customer data to discover a meaningful
segmentation pattern
Repeaters
Posers
Freshers
Outsiders
SeniorsQuitters
Top stars
Don’t spend a lot
but shop very often.
New buyers still
discovering and
evaluating the offer.
Good spenders but
shop infrequently
because they live far
away.
Are much older than
target customers
and do not buy
much.
Used to be loyal
customer but do not
buy anymore.
Have a loyalty card
but never purchased
anything.
Shop very often and
spend much more
than average each
time
We used
advanced
Analytics to
assign each
customer to
one of 7
segment

5. It was eye opening for our client to find-out that its customer portfolio was not
leveraged effectively
Top stars
Repeaters
Freshers
Posers
Outsiders
Seniors
Quitters
Revenue generation was
highly dependant on a small
set of customers
The biggest part of the
portfolio consisted of
customers with low buying
frequency and low ticket size
A considerable proportion of
customers was progressively
leaving for competitors
Distribution of customers per segment
1%
10%
18%
16%
20%
13%
22%

6. These insights were used to define a new marketing strategy aimed at
optimising the customer portfolio
Up-sell and cross-sell the repeaters to
increase basket size. Secure top-star
customers from competition with premium
reward program.
Communicate aggressively and create
occasions for these customers to come to the
stores and discover the full range of products.
Determine possible locations for new stores.
Bring formerly loyal shoppers back to the store
with exceptional promotions. Invite older
shoppers to purchase products as a present for
their younger relatives.
DEFEND
STIMULATE
REACH
RECONNECT
Top stars
Repeaters
Freshers
Posers
Outsiders
Seniors
Quitters
Distribution of customers per segment
1%
10%
18%
16%
20%
13%
22%

7. Kanvic is a management consulting firm helping businesses develop winning strategies, drive profitable growth and achieve
operational excellence to reap long lasting rewards in fast growing Indian economy. We work with C-level executives to develop
innovative solutions for business challenges of 21st century India by bringing in leading edge management thinking informed by
in-depth research and sound analysis.
Contact
www.kanvic.com
Delhi
Deepak Sharma
M: +91 99283 77800
E: deepak@kanvic.com
Bangalore
Ravindra Beleyur
M: +91 94481 46963
E: ravi@kanvic.com
About Kanvic
Paris
Vlad Flamind
M: +33 7624 51907
E: vlad@kanvic.com
London
Gehan Wanduragala
M: +44 7825 169716
E: gehan@kanvic.com