Industries: Retail & e-commerce, Financial services
A leading retail chain specializing in frozen foods approached Equancy to help them clarify which priorities should be set for its newly created Customer Marketing department.
The success of the original business model was based on quality and product innovation, a wide distribution network and a very simple mix model. Our client saw an opportunity in customer marketing as a way to use deeper customer knowledge to drive the business strategy and feed direct marketing activation for stimulating foot traffic.
The main objectives of the project were to:
- Identify loyalty and customer value drivers
- Pinpoint the high value customer profiles
- Evaluate the opportunity to differentiate the marketing mix per cluster of stores according to specific customer profile
What Equancy did
We provided our client with a detailed analysis of customer behaviors followed by recommendations to set the chain’s strategy and tactical priorities for its customer marketing. This was undertaken by analyzing two years of cash receipts from all points of sale (POS), enabling us to build a deep understanding of the reasons why customers shop at the retail chain.
Relevant aspects included:
- Cross functional workshops to validate key business questions for data analysis
- Data analysis & data mining of cash receipt data
- Cross functional workshops to share learnings and insights from data, and our recommendations and set priorities together
- Definition of best categories and SKU products that drive recruitment or loyalty
- Segmentation of baskets based on purchased product data to qualify main motivators of visits
- Segmentation of customers based on basket data to differentiate profiles against reason to visit
- Definition of POS clusters where merchandising should be personalized according to customer profiles
- Recommendation of five priority projects for customer strategy including product innovation, communications, merchandizing, promotion and CRM activation
- Creation of a roadmap and action plan to launch these projects over the next 5 years with objectives, project managers, clear KPIs and expected outcomes
- Presentation of key insights and strategic action plans to financial stakeholders
- >15% uplift in customer value for customers reached by direct marketing
- >2% additional turnover in stores where product mix & shopper journey were personalized