Click here for a printer friendly version
Consumer Segmentation
Segmentation strategy and analysis bring a new product to market successfully
The Challenge
Our consumer products client, with both B2B and direct-to-consumer audiences, wanted to be able to leverage customer transactional information collected at store registers to identify the most valuable customers in each customer segment. With this information, our client would be able to:
- Optimize its direct mail and online marketing channels across its strategic consumer segments.
- Optimize store SKU mixes based on each segment’s category needs.
- Track customers’ migration across segments.
- Maximize the ROI of its direct mail and marketing campaigns within the segments.
The Breakthrough
SIGMA’s solution was to perform a segmentation analysis and develop a customized Consumer Segmentation System for several million credit card and special order customers, and an additional Professional Segmentation System for close to a million credit card and special order customers. This segmentation strategy was developed by analyzing key behavior, historical and demographic variables.
The Win
With the results of SIGMA's segmentation analysis, our client was able to identify:
- Customer segments behaving as professionals disguised in consumer accounts.
- Purchase behavior and Life Cycle characteristics of its most valuable customers.
- Marketing strategies customized to each consumer segment’s households’ needs and potential.
Our client’s marketing group is now able to:
- Be proactive in identifying retention/reward and growth opportunities.
- Personalize their customer communications and store SKU mixes.