SlideShare a Scribd company logo
Growing by
Customer
Segmentation
Key Objectives
- Improve customer conversion rate
- Improve customer retention
- Identifying key/important customers
Our Current Numbers
Customer Retention
decreased from 29%
to 23% between 2021
and 2022
Prism’s cart
abandonment rate is
significantly higher
than the average of
57.9% as reported by
freshrelevance
https://www.freshrelevance.com/resources/r
eal-time-marketing-report-may-2022/
Registered members are IMPORTANT!
Explored Segments
Demographic – Age, City did not
produce anything significant
against KPI's, we require more
data.
RFM – Identified key member
groups using RFM score.
Behavioural – Time of Day,
Members in Loyalty programmes
RFM Segment Breakdown
Best Customers
- Most Recent
- Most Frequent
- Highest Monetary
Most Loyal Customers
- Most Frequent
Low Spending Loyal Customers
- Most Frequent
- Lowest Monetary
Whales, Highest spending customers
- Highest Monetary
RFM Analysis
Cart Abandonment
Rate is under 50% for
all RFM segments
Best Average Spend for
Best Customer and
Whale segments
Platinum Customers
- Platinum Prism Plus
customers have the
highest conversion rate
- Platinum customers
account for only 8.6% of
prism plus members
- Significant no. customers
not part of Prism Plus
Time of Day Segmentation
Early Morning = 0001 – 0600
Morning = 0601 – 1200
Afternoon = 1201 – 1800
Evening = 1801 – 0000
- Conversion rate
highest in Early Morning
and Afternoon
- Can increase
customer engagement
with timed email release
We need more Opt-ins
What can we do?
Increase opt ins (and potentially registrations) to email marketing by
offering free delivery on checkout with a sign up.
Increase Prism Plus memberships by natively promoting it in emails and
providing better incentives (25%+ on next order on sign up)
Encourage advancement through Prism Plus tiers through a bonus point
scheme
Deliver email campaigns in afternoons to maximise probability of
conversion.
Future Actions
Ultra Targeted Email Marketing:
Tailored email marketing specific to customers
behavioural and purchase history using machine
learning and AI.
Web Personalisation:
Personalised web pages with dynamic content,
tailored recommendations and exclusive offers
using customer segments
Demographics
Age, Education, Occupation,
Marital Status, Family size etc.
Web Analytics
Funnel data, search data,
payment types
Product Attributes
size, colour, material
etc.
Further Data:
https://www.freshrelevance.com/resources/real-time-marketing-report-may-2022/
Thank you
Questions?

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Customer Segmentation.pptx

  • 2. Key Objectives - Improve customer conversion rate - Improve customer retention - Identifying key/important customers
  • 3. Our Current Numbers Customer Retention decreased from 29% to 23% between 2021 and 2022 Prism’s cart abandonment rate is significantly higher than the average of 57.9% as reported by freshrelevance https://www.freshrelevance.com/resources/r eal-time-marketing-report-may-2022/
  • 5. Explored Segments Demographic – Age, City did not produce anything significant against KPI's, we require more data. RFM – Identified key member groups using RFM score. Behavioural – Time of Day, Members in Loyalty programmes
  • 6. RFM Segment Breakdown Best Customers - Most Recent - Most Frequent - Highest Monetary Most Loyal Customers - Most Frequent Low Spending Loyal Customers - Most Frequent - Lowest Monetary Whales, Highest spending customers - Highest Monetary
  • 7. RFM Analysis Cart Abandonment Rate is under 50% for all RFM segments Best Average Spend for Best Customer and Whale segments
  • 8. Platinum Customers - Platinum Prism Plus customers have the highest conversion rate - Platinum customers account for only 8.6% of prism plus members - Significant no. customers not part of Prism Plus
  • 9. Time of Day Segmentation Early Morning = 0001 – 0600 Morning = 0601 – 1200 Afternoon = 1201 – 1800 Evening = 1801 – 0000 - Conversion rate highest in Early Morning and Afternoon - Can increase customer engagement with timed email release
  • 10. We need more Opt-ins
  • 11. What can we do? Increase opt ins (and potentially registrations) to email marketing by offering free delivery on checkout with a sign up. Increase Prism Plus memberships by natively promoting it in emails and providing better incentives (25%+ on next order on sign up) Encourage advancement through Prism Plus tiers through a bonus point scheme Deliver email campaigns in afternoons to maximise probability of conversion.
  • 12. Future Actions Ultra Targeted Email Marketing: Tailored email marketing specific to customers behavioural and purchase history using machine learning and AI. Web Personalisation: Personalised web pages with dynamic content, tailored recommendations and exclusive offers using customer segments Demographics Age, Education, Occupation, Marital Status, Family size etc. Web Analytics Funnel data, search data, payment types Product Attributes size, colour, material etc. Further Data: https://www.freshrelevance.com/resources/real-time-marketing-report-may-2022/