The client is a leading US specialty food retailer offering a personalized shopping experience for its clients across 100+ stores.
As a first step, to create a customer 360-degree view datamart, data from multiple sources like CRM, POS Data, online purchase data, and Campaign Management System was integrated.
An in-depth exploratory analysis was conducted to explore key insights about customer demographics, shopping patterns, price propensity, etc. Insights from the analysis helped the retailer to understand key influencers of purchase behavior, and create different customer profiles and genomes .
Tenzai employed its proprietary 6D Segmentation framework to develop a robust customer segmentation model for the client. The framework considered multiple attributes for segmentation like demographics, location, campaign response, channel preference, etc.
In the next step, using clustering techniques the customer base was grouped into several unique clusters based on the category purchase patterns and preferences.
The clustering model was overlaid with other segments like value, frequency, demographics, location, channel, price propensity, dormancy, etc. to create multidimensional microsegments for the retailer.
The customer segmentation model helped in analyzing diverse customer groups and offer tailored solutions to each segment. The segmentation framework also provided the retailer with a better understanding of the current value and future potential for each segment.
A customer segment dashboard was created to help business users track segment behavior and their performance across multiple KPIs.