Segmentation based on customer’s contribution Utilizing segmentation to identify contribution of each customer within the transactional database To download visit: blog.cequitysolutions.com and www.cequitysolutions.com

1. CASE STUDY
Data Driven Loyalty Program
Managing End-to-End Loyalty Program through Analytics
Client: Large Retail Chain

2. Summary

3. Segmentation based on customer’s contribution
Utilizing segmentation to identify contribution of each customer within the
transactional database.
High
Grow Preserve
Spend in store
Maintain/Drop Foster/Cultivate
Low
Visit frequency
Low High
Useful to make relatively
Useful to nudge the
stable customer base so that
customers towards a
the membership becomes
stronger/more profitable
long lasting
relationships

4. Value Segmentation
Cequity deployed scoring technique to construct the segmentation for the Retail service provider for
identifying the subscribers with various value band on historic and observed transactional data and
key business parameters.
Cequity’s
Value
Segmentatio
n
Developmen
t Stages

5. Segment the customers
From Transaction Data Identify the
pattern customer’s purchase
Segment the customers based on profit
Loyals Potentials Nascents Dormants
Almost 1/4th of the entire 2nd largest segment Non-Profitable for long
customer base, generating needs as emerging term business
approx. 70% of sales customers relationship

6. Customer Profiling
Demographics
Geography
Purchase
trend
Category
Penetration
Vintage
Visit
Freq.&
Trend
Spending
Profiling the customers from Category habits
various segments on Affinity
different dimensions

7. Results
Cequity’s data driven loyalty program has become the key driver for all one-to-one and
CRM marketing programs.
We are partnering with clients to support in customer database management, segmented
marketing program, dashboards and MIS for Marketing teams to take quick business
decisions and also for planning; executing and monitoring of the retention campaigns.
The programs have led to a potential savings of over US$ 2 million

8. Worldwide Offices
INDI A USA
Mumbai Office: 105-106, 1st Floor, Chicago Office: 626, Grove Street, Anand
Estate, 189-A, Evantson, IL 60201
Sane Guruji Marg, Mahalaxmi,
Mumbai-400 011
Phone: +91 22 23000133, 23054039,
Fax: +91 22 23053809
www.CequitySolutions.com
info@CequitySolutions.com