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Case Study
             Capturing the preference
             pattern of micro-segments
             within customer segments
             Designing a multi-prong
             strategy to obtain maximum
             ROI from marketing campaigns

             Client: A multi-national fast food
             joint
Summary


               • Our client was having problems in identifying the customer
   Business      segments and so the campaigns designed were not meeting with
                 the expected level of success.
   Objective   • It was looking for ways to capture trends within each segment so
                 as to address each identifiable pattern accordingly.




               • Cequity identified the broad segments according to the vintage
               • Within each of these segments , it found out patterns with respect
                 to spend, activity, menu items, coupon utilization
   Solution    • Crystal clear picture emerged out of these micro-segments which
                 formed the foundation of client’s efforts to build effective
                 campaigns.




               • Our client had the liberty to design campaigns literally keeping in
                 mind profile of each customer within each micro-segment.
               • As a by-product of the analysis , our clients got a definite picture of
    Results      the gap between low-value and high-value customers & designing
                 special packs to migrate members form the former block to the
                 latter one.
Business Objective



           Our esteemed client was finding difficulty in achieving the targeted
           ROI in marketing campaigns. Budget was being spent, but still if
           suffered acutely from attrition of its vintage customers.
           At the same time the fast food industry was performing fabulously,
           so there was all the more incentive for our client to partner with
           Cequity to get quantifiable business value through our ‘analytics
           managed services’ model.



           We helped our client to harvest the mounds of data from loyalty
           system to reap bumper crops by providing jumpstart for Business
           Managers to analytics.
           The Results were:
           identify promos for each campaigns to make them more profitable
           Sales forecasting
           Dashboard & Scorecard generation
Solution – Finding out micro segments
                                                                                           Effective
     The technical proficiency & domain knowledge of                                    campaigns for
                                                                                         each of these
       Cequity were instrumental in segmenting the                                     identified micro-
                                                                                          segments
                   customers effectively.

                                                    Increasing order of recency
                                                        Recently Acquires:
                             Vintages: Customers
                                                      Customers who have         New-Bies: Most recent
                             who have joined long   joined before a specified   acquisitions of our client
                             ago                           time period
 Decreasing order of value




                                                                                       High
                                  Hi-Value               Potential
                                                                                       Value

                                  Low-Value                                             Value
                                                         Growable
                                                                                       Builder
                                 •Increasing
                                  spend
                                 •Decreasing
                                  Spend                                              Frequency
                                                           Thrifty
                                                                                       Builder

                                                          Fence-                       Thrifty
                                                          sitters
Solution – Finding out micro segments
                                                                                                       Effective
      The technical proficiency & domain knowledge of                                               campaigns for
                                                                                                     each of these
        Cequity were instrumental in segmenting the                                                identified micro-
                                                                                                      segments
                    customers effectively.

                                                          Increasing order of recency
                                                                    Recently Acquires:
                              Vintages: Customers
                                                                  Customers who have         New-Bies: Most recent
                              who have joined long
  Decreasing order of value




                                                                joined before a specified   acquisitions of our client
                              ago                                      time period

                                                                                                   High
                                    Hi-Value                         Potential
                                                                                                   Value

                                    Low-Value                                                       Value
                                                                     Growable
                                                                                                   Builder
                                   •Increasing
                                    spend
                                   •Decreasing
                                    Spend                                                        Frequency
                                                                       Thrifty
                                                                                                   Builder
                                   Solo
 Variety                                      Single    Decreasing
                                 Connoiss                             Fence-
 Seekers                                     Favorite    Favorite
                                                                                                   Thrifty
                                   eur
                                                                      sitters
Solution –Campaigns Design




     Vintage Low Value
                                           Recently Acquired                             New-Bies
     Decreasing Spend
    Variety Seekers                        Potential                              High Value
    Give them Offers to improve their     Should be nurtured; every effort to
                                                                                  Retention campaigning should be
     variety, For e.g.: “Domino’s New        retain them through special
                                                                                          done with them
       Taste of the Week Offer !!”          privileges, birth-day offers, etc
   Solo Connoisseurs                      Growable                               Value Builder
    Give them Offers to promote their
                                          Need to pushed through frequency         Campaigning should be done to
    choice, For e.g.: Discount Coupon
                                                 builder campaigns                     increase frequency.
    for 3 same pizza over a month !! ”

      Single Fav                           Thrifties                            Frequency Builder
                                            To make them spend more sell           Campaigning should be done to
      Campaigns to make them taste
                                                    large baskets                        increase spend.
             other dishes

    Decreasing Fav                        Fence Sitters                             Thrifties
     Their favorite item is not able to    Need frequent communication;
       bring them frequently so give              Push campaigns
      them Offers to try new items.
Results

                                                  Campaign
                                                development,
                                                execution and
                                                   tracking
                          Model development &
                          Micro-segmentation

                                                                Increasing
         Train of thought
                                                                return on
        analysis, training &
                                                 Targeted       marketing
            consulting
                                                 Campaigns      investments
                                  Actionable
Integration
                                  Drill Down
  of Data
                                  Analysis
                  Single
                  Customer
                  View
Results

                                                        Campaign
                                                      development,
                                                      execution and
                                                         tracking
                          Model development &
                          Micro-segmentation

                                                                                Increasing
         Train of thought
                                                                                return on
        analysis, training &
                                                       Targeted                 marketing
            consulting
                                                       Campaigns                investments
                                  Actionable
Integration
                                  Drill Down
  of Data
                                  Analysis
                  Single                                       Quantification
                                 • Increase Active                                 • Sa l es forecasting
                  Customer         ba s e                                          • Promoti on
                                                          • Bra nch Analysis
                  View           • Better                                            effectiveness and
                                                          • Bra nch
                                   understanding of                                  opti mization
                                                            performance
                                   cus tomers
                                                            s corecard
                                                                                       Trends Analysis &
                                                            generation
                                      Segmentation
                                                                                        decision making
Thank you
                Customer Equity Solutions Pvt. Ltd.


                         Worldwide Offices

INDIA                                           USA
Mumbai Office: 105-106, 1st Floor,              Chicago Office: 626,
Anand Estate, 189-A,                            Grove Street, Evantson, IL
Sane Guruji Marg, Mahalaxmi,                    60201
Mumbai-400 011
Phone: +91 22 4345 3800
Fax: +91 22 4345 3840
                        www.CequitySolutions.com

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Capturing the preference pattern of micro-segments within customer segments

  • 1. Case Study Capturing the preference pattern of micro-segments within customer segments Designing a multi-prong strategy to obtain maximum ROI from marketing campaigns Client: A multi-national fast food joint
  • 2. Summary • Our client was having problems in identifying the customer Business segments and so the campaigns designed were not meeting with the expected level of success. Objective • It was looking for ways to capture trends within each segment so as to address each identifiable pattern accordingly. • Cequity identified the broad segments according to the vintage • Within each of these segments , it found out patterns with respect to spend, activity, menu items, coupon utilization Solution • Crystal clear picture emerged out of these micro-segments which formed the foundation of client’s efforts to build effective campaigns. • Our client had the liberty to design campaigns literally keeping in mind profile of each customer within each micro-segment. • As a by-product of the analysis , our clients got a definite picture of Results the gap between low-value and high-value customers & designing special packs to migrate members form the former block to the latter one.
  • 3. Business Objective Our esteemed client was finding difficulty in achieving the targeted ROI in marketing campaigns. Budget was being spent, but still if suffered acutely from attrition of its vintage customers. At the same time the fast food industry was performing fabulously, so there was all the more incentive for our client to partner with Cequity to get quantifiable business value through our ‘analytics managed services’ model. We helped our client to harvest the mounds of data from loyalty system to reap bumper crops by providing jumpstart for Business Managers to analytics. The Results were: identify promos for each campaigns to make them more profitable Sales forecasting Dashboard & Scorecard generation
  • 4. Solution – Finding out micro segments Effective The technical proficiency & domain knowledge of campaigns for each of these Cequity were instrumental in segmenting the identified micro- segments customers effectively. Increasing order of recency Recently Acquires: Vintages: Customers Customers who have New-Bies: Most recent who have joined long joined before a specified acquisitions of our client ago time period Decreasing order of value High Hi-Value Potential Value Low-Value Value Growable Builder •Increasing spend •Decreasing Spend Frequency Thrifty Builder Fence- Thrifty sitters
  • 5. Solution – Finding out micro segments Effective The technical proficiency & domain knowledge of campaigns for each of these Cequity were instrumental in segmenting the identified micro- segments customers effectively. Increasing order of recency Recently Acquires: Vintages: Customers Customers who have New-Bies: Most recent who have joined long Decreasing order of value joined before a specified acquisitions of our client ago time period High Hi-Value Potential Value Low-Value Value Growable Builder •Increasing spend •Decreasing Spend Frequency Thrifty Builder Solo Variety Single Decreasing Connoiss Fence- Seekers Favorite Favorite Thrifty eur sitters
  • 6. Solution –Campaigns Design Vintage Low Value Recently Acquired New-Bies Decreasing Spend Variety Seekers Potential High Value Give them Offers to improve their Should be nurtured; every effort to Retention campaigning should be variety, For e.g.: “Domino’s New retain them through special done with them Taste of the Week Offer !!” privileges, birth-day offers, etc Solo Connoisseurs Growable Value Builder Give them Offers to promote their Need to pushed through frequency Campaigning should be done to choice, For e.g.: Discount Coupon builder campaigns increase frequency. for 3 same pizza over a month !! ” Single Fav Thrifties Frequency Builder To make them spend more sell Campaigning should be done to Campaigns to make them taste large baskets increase spend. other dishes Decreasing Fav Fence Sitters Thrifties Their favorite item is not able to Need frequent communication; bring them frequently so give Push campaigns them Offers to try new items.
  • 7. Results Campaign development, execution and tracking Model development & Micro-segmentation Increasing Train of thought return on analysis, training & Targeted marketing consulting Campaigns investments Actionable Integration Drill Down of Data Analysis Single Customer View
  • 8. Results Campaign development, execution and tracking Model development & Micro-segmentation Increasing Train of thought return on analysis, training & Targeted marketing consulting Campaigns investments Actionable Integration Drill Down of Data Analysis Single Quantification • Increase Active • Sa l es forecasting Customer ba s e • Promoti on • Bra nch Analysis View • Better effectiveness and • Bra nch understanding of opti mization performance cus tomers s corecard Trends Analysis & generation Segmentation decision making
  • 9. Thank you Customer Equity Solutions Pvt. Ltd. Worldwide Offices INDIA USA Mumbai Office: 105-106, 1st Floor, Chicago Office: 626, Anand Estate, 189-A, Grove Street, Evantson, IL Sane Guruji Marg, Mahalaxmi, 60201 Mumbai-400 011 Phone: +91 22 4345 3800 Fax: +91 22 4345 3840 www.CequitySolutions.com