The document summarizes a company's analysis of customer loyalty segments to determine the best marketing strategy to increase revenue. It finds that the silver segment has the most customers but the lowest spending, while the gold segment has the fewest customers but the highest spending. It then proposes a multi-channel marketing campaign focused on direct mail, web, and point-of-sale promotions for gold and silver customers, particularly for electronic and book products. The document acknowledges limitations in the data provided and suggests the segments may need re-evaluating over time as the industry evolves.

1. Andrew Jenkins
Manabu Morita
Thanapol Poopunsri
Steven Stavrou
Siriorn Vichaiwatanapanich
Neoshop

2. Problem & Our Approach
Problem: Declining revenues and customer loyalty. Find
the best strategy to increase revenue from current
customers and retain them.
Our Approach: Analyzed data in SPSS and visualized in
Tableau to understand the difference of each loyalty
segment.

3. Limitations & Assumptions
• No gender information
• Only provided average spending
• Only one product (record) per customer
• No cost data
• Sales/Products could be seasonal
• Assume that conversion rate for a single channel is same for all
segments
• We don’t know physical store locations
• Based on current customer segments. Could be different.

4. Key Findings
Total Spending Avg spending/customerNumber of customer
• Silver has the most customers, smallest basket.
• Gold has the least customers, largest basket.

5. Key Findings

6. Key Findings
• Total Spending by product category

7. Key Findings
• Product sub-category by segment - Software and Book

8. Key Findings
• Product sub-category by segment - Video game

9. Marketing Campaign
• Run 3 outbound campaigns to get the
highest conversion rate through different
channels
• Direct mails on gold customers for two
weeks
• Run inbound marketing (Web & POS) to
support outbound messages (direct mail,
mobile apps, social network)
• Focus on specific product marketing for
Electronic (Gold and Silver) and Books
(Silver and Bronze)

10. Marketing Campaign
Segment Current
avg
spending
Additional avg
spending from 5
week campaign
% increase New Total avg
Spending
Gold 62.98 26.48 42% $59,941
Silver 11.29 2.92 26% $67,239
Bronze 19.75 6.61 33% $85,387

11. • Evolving industry
– Are the old segments still valid?
• Provided Limited data
– There may be other legitimate factors
Time to Re-segment?

12. Methodology
• Use XL Miner to transform variables
– Missing data
– Dummies
– 1 Bin
– Results in 21 segmentation variables
• Run the segmentation with ME XL

13. Output

14. Loyalty Test