Analyzing Customer Needs and Reducing Customer Churn Rate by 13% for a Fashion Retail Industry Client Using Customer Intelligence Engagement
Fashion Retail Industry Overview From smartphone shopping to aspiring customers, the fashion retail industry is facing a slew of changes that will reshape the landscape for good. However, fashion retailers are experiencing tough competition from department stores and specialty clothing brands. Also, as customers are moving seamlessly between online and offline experiences, fashion retail brands [...]READ MORE >>
Fashion Retail Industry Overview
From smartphone shopping to aspiring customers, the fashion retail industry is facing a slew of changes that will reshape the landscape for good. However, fashion retailers are experiencing tough competition from department stores and specialty clothing brands. Also, as customers are moving seamlessly between online and offline experiences, fashion retail brands are in the need to best facilitate these transitions. Besides, revamping traditional business models and adopting a customer-centric approach is becoming inevitable for companies in the fashion retail industry.
The client is a fashion retail brand based out of Central Europe
In an attempt to acquire new customers and retain valuable ones, the client offered huge discounts to their customers. However, this resulted in price war between their competitors. In addition, this had a negative impact on the company’s profit margins. Also, as customers seamlessly moved between online and offline channels, the fashion retail industry client faced difficulties in meeting their needs and demands. Consequently, they encountered a steady decline in sales rate for two consecutive years. The client, therefore, wanted to gather customer insights and devise personalized marketing approached for them. They approached the experts at Infiniti Research to leverage their expertise in offering customer intelligence solution.
With Infiniti’s customer intelligence solution, the fashion retail industry client also wanted to:
- Devise an omnichannel model of business and enhance customer experience
- Identify supply chain complexities and take approaches to manage inventory
- Understand the satisfaction level of customers regarding their products and services
- Enhance customer loyalty and brand image
- Devise a customer-centric marketing approach
The experts at Infiniti Research adopted a four-phased approach that involved:
Customer needs assessment to analyze customers’ needs and demands
Customer satisfaction analysis to understand the satisfaction level of customers regarding the client’s product and service offerings
Demand management solution to identify the potential market demand for the client’s products and manage inventory accordingly
Marketing strategy engagement to devise a sound marketing and sales strategy
With Infiniti’s customer needs analysis solution, the fashion retail industry client was able to increase their sales and market share by focusing on personalizing their product offerings according to customers’ needs and requirements. Also, by segmenting customers into various categories based on their demands, the client was able to realign their marketing activities and distribution process to meet customer needs. This further helped the fashion retail industry client in successfully implementing the new customer segmentation approach and realigning their delivery system, as well as distribution and sales process based on customer needs.
The client was also able to reduce customer churn rate by 13%. Also, the company gained 7.5% retail share in its new product category over two years, generating millions of dollars in revenue.