Challenge
An FMCG company is struggling to effectively segment its customer base.
There is a lot of data, but no coherent strategy for tailoring marketing communications to different groups of customers.
The company decided to use customer segmentation (based on shopping behavior) to better understand their needs and increase marketing effectiveness.
It was hard to find a better product than iPresso Marketing Automation.
Action
- Data collection and analysis.
With iPresso, the company collected data on customer behavior, such as purchase history, frequency, order value and types of products purchased.
The data is deposited directly into the contact database, on each customer's individual card. Marketers have instant access to the history of all contacts. - Segmentation criteria for the base.
Using the RFM analysis available in iPresso, the company defined segmentation criteria based on key purchasing indicators:- Recency (Recent activity): How recently a customer made a purchase.
- Frequency: How often a customer makes a purchase.
- Monetary (Value of purchases): How much the customer spends when shopping.
- Product Type: What product categories the customer buys most often.
- Campaign Reactions: What marketing campaigns and offers have piqued the customer's interest.
- Creating customer segments.
Based on the data collected by marketing automation, customers could be divided into different segments, such as:- Top customers - High purchase frequency and high order value.
New customers - Customers who have recently made their first purchase.
Potential loyal customers - Customers with high purchase frequency but medium order value.
Price-sensitive customers - Customers who frequently buy products on promotion.
Recoverable customers - Customers who used to buy frequently but have not made a purchase in a long time.
- Personalization of marketing campaigns.
Using iPresso's functionality, the company has developed personalized marketing campaigns for each customer segment.- Top customers: Exclusive offers, loyalty programs, priority access to new products.
- New customers: Welcome offers with discounts, shopping guides, popular product suggestions.
- Potential loyal customers: Special promotions, incentives for more frequent purchases, product recommendations.
- Price-sensitive customers: Information on promotions and discounts, package deals.
- Customers to regain: Reactivation campaigns with attractive offers, surveys with questions about reasons for not buying.
- Monitoring and optimization.
The company regularly monitored the performance of marketing campaigns, analyzing open rates, clicks, conversions and order value. Based on the results, campaigns were optimized to increase their effectiveness.
Results
Personalized marketing campaigns helped increase customer engagement. Email open rates increased by 15% and click-through rates by 8%.
Effective customer segmentation and customization of communications resulted in an 18% increase in conversion rates. Customers were more likely to make purchases when they received offers tailored to their preferences.
Personalized product recommendations and package offers contributed to a 15% increase in average order value.
Loyalty and reactivation campaigns increased customer retention by 22%. Customers were more likely to return and make repeat purchases.
The company was able to use its marketing budget more efficiently due to precise segmentation and better campaign effectiveness. This reduced the cost of acquiring new customers and increased the ROI of the campaign.
