Created a reactivation campaign by fostering customer engagement and monitoring customer purchase data to generate insights. This ensured a better understanding of customer behaviour which in turn enabled the client to drive customer retention.
Challenge
The client was a leading global specialty retailer of health and nutrition related products. They wanted to leverage the power of data to engage the one-time buyer customers and convert them into regular customers.
Traditionally, the client had been using a “one-size fits all” approach for marketing, by using the same messaging for all customers. As a result, they had a high churn problem, with only one-third of the customers doing repeat business.
The client wanted to create and implement tailored campaigns based on customer behaviour.
Solution
- Analyzed customer behaviour across channels, product categories, discounts, loyalty programs and repeat behaviour
- Implemented product association using apriori algorithm (market basket analysis) so as to understand customer purchase patterns
- Created customer segments which are differentiated on product affinity, channel preference among other factors
- Designed a reactivation campaign which laid down the messaging factors, timing, and channel of customer outreach
- Tested reactivation campaign through A/B testing and measured the impact of new campaigns against general campaign
- Created Tableau based dashboards to analyse and monitor segment behaviour
Impact
Customer reactivation increased by 17% and repeat customer basket value was higher by 9% for the customized messaging group compared to the control group.
