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Case Study

             Campaign Design for the
             micro-segments
             Increasing the dwindling footfalls
             & generating positive WOM
             through RIGHT campaign design

             Client: Large Retail Chain
Summary


               • Our client on an expansion spree, was not being able to put in
   Business      adequate focus to study the customer behavior pattern
   Objective   • It was looking for ways to capture the high churn and early
                 dropouts which had cascaded in depleting top-lines.




               • Cequity mapped micro-segments of customers using the RFM grid
               • It mined the spending habits of customers within these micro-
   Solution      segments & classified them accordingly
               • Design targeted promos for each of these clusters with exclusive
                 value offerings




               • Our client had an unprecedented success in win-back initiative
               • There was manifold increase in footfalls of new customers
    Results    • Effective response tracking dashboards were designed to measure
                 campaign ROI and to keep stock of inert customers so as to target
                 them in the next campaign
Business Objective


                Currently retail industry is marked by new entrants,
                predatory pricing and high real estate prices. Our client was
                already in phase of rapid expansion and its focus was
                becoming monolithic in this pursuit. In the current
                scenario, retailers operate on wafer thin margins and
                commit themselves towards a long break-even time and
                loosing out on existing customers in such a scenario was
                bringing high attrition in its top-line which demanded
                immediate arrest.


                In these times of fierce competition we helped the client to
                effectively understand the customer behavior, designing
                campaigns suited across each customer micro-segment,
                tracking those campaigns so as to continuously improve
                upon them.
                There was visible improvement in # of footfalls, ticket-size
                and other accompanying factors within a short time-
                period.
Solution – Finding out microsegments

 Cequity used the evolved version of the much
      celebrated and successful of RFM
      methodology to solve this problem
Solution – Designing campaigns for clusters


  Cluster
    #1
                                           Member
                   Sta ggered
                                          bri ngs new
                   di s counts
                                           member
                    ba s ed on
                   members
                     bought



                                  Sweepstakes




                   Number of new customers bought: 66, 9652
                      Additional revenue: INR 8.357 million
Solution – Designing campaigns for clusters


         Cluster
           #2
                                                      Focus on
                                                  i ncreasing the
                            Di s counts           # of vi s i ts from
                             wi thin                 na s cents &
                         s pecified ti me             potential
                             peri ods


                                                Hi gher
                                            di s counts on
                                             peri shable
                                             i tems like
                                                grocery




                          Number of customers targeted: 1,72,587
                          Additional revenue: INR XXXXX million
Solution – Designing campaigns for clusters



                 Cluster
                   #3
                                                          Focus on
                                                            getti ng
                                                        footfalls from
                                    Ci ty wi s e         va ni shers &
                                  ca mpaigning           hi bernators


                                                    Offers on
                                                    mos t s old
                                                   products to
                                                   bri ng them
                                                       ba ck




                                   Number of customers targeted: 1,72,587
                                   Additional revenue: INR XXXXX million
Results & Insights
                     Results generated
Hi gher foot-falls

Les s instances of churns & drop-outs reported

Hi gh ROI of ca mpaigns

New cus tomer a cquisition through positive word-of-mouth

A rea dy-made dashboard to monitor performance of each
ca mpaign through Cequity’s ACE tool
                                                                              Insights generated

                                                            Di s tribution & Sa les Contribution- By Segment for Top 10 Ci ties

                                                            Month on month sales distribution for each segment

                                                            Di s tribution of purchase va lue bands, average ticket s ize before
                                                            a nd a fter ca mpaign

                                                            Performance comparison of different s tores in terms of sales
                                                            a nd number of vi sitors

                                                            Geography-wise comparison (zone-wise, ci ty-wise)

                                                            Sa l e distribution of items under offer
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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Campaign Design using micro-segment for retail.

  • 1. Case Study Campaign Design for the micro-segments Increasing the dwindling footfalls & generating positive WOM through RIGHT campaign design Client: Large Retail Chain
  • 2. Summary • Our client on an expansion spree, was not being able to put in Business adequate focus to study the customer behavior pattern Objective • It was looking for ways to capture the high churn and early dropouts which had cascaded in depleting top-lines. • Cequity mapped micro-segments of customers using the RFM grid • It mined the spending habits of customers within these micro- Solution segments & classified them accordingly • Design targeted promos for each of these clusters with exclusive value offerings • Our client had an unprecedented success in win-back initiative • There was manifold increase in footfalls of new customers Results • Effective response tracking dashboards were designed to measure campaign ROI and to keep stock of inert customers so as to target them in the next campaign
  • 3. Business Objective Currently retail industry is marked by new entrants, predatory pricing and high real estate prices. Our client was already in phase of rapid expansion and its focus was becoming monolithic in this pursuit. In the current scenario, retailers operate on wafer thin margins and commit themselves towards a long break-even time and loosing out on existing customers in such a scenario was bringing high attrition in its top-line which demanded immediate arrest. In these times of fierce competition we helped the client to effectively understand the customer behavior, designing campaigns suited across each customer micro-segment, tracking those campaigns so as to continuously improve upon them. There was visible improvement in # of footfalls, ticket-size and other accompanying factors within a short time- period.
  • 4. Solution – Finding out microsegments Cequity used the evolved version of the much celebrated and successful of RFM methodology to solve this problem
  • 5. Solution – Designing campaigns for clusters Cluster #1 Member Sta ggered bri ngs new di s counts member ba s ed on members bought Sweepstakes Number of new customers bought: 66, 9652 Additional revenue: INR 8.357 million
  • 6. Solution – Designing campaigns for clusters Cluster #2 Focus on i ncreasing the Di s counts # of vi s i ts from wi thin na s cents & s pecified ti me potential peri ods Hi gher di s counts on peri shable i tems like grocery Number of customers targeted: 1,72,587 Additional revenue: INR XXXXX million
  • 7. Solution – Designing campaigns for clusters Cluster #3 Focus on getti ng footfalls from Ci ty wi s e va ni shers & ca mpaigning hi bernators Offers on mos t s old products to bri ng them ba ck Number of customers targeted: 1,72,587 Additional revenue: INR XXXXX million
  • 8. Results & Insights Results generated Hi gher foot-falls Les s instances of churns & drop-outs reported Hi gh ROI of ca mpaigns New cus tomer a cquisition through positive word-of-mouth A rea dy-made dashboard to monitor performance of each ca mpaign through Cequity’s ACE tool Insights generated Di s tribution & Sa les Contribution- By Segment for Top 10 Ci ties Month on month sales distribution for each segment Di s tribution of purchase va lue bands, average ticket s ize before a nd a fter ca mpaign Performance comparison of different s tores in terms of sales a nd number of vi sitors Geography-wise comparison (zone-wise, ci ty-wise) Sa l e distribution of items under offer
  • 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