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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
Sta ggered Member
di s counts bri ngs new
ba s ed on member
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