Customer Retention Analysis for the Retail Industry
The Canadian retail industry is undergoing massive transformations. The days of simply acquiring new customers to multiply the size of business are gone. Today, the only way to grow profitably is to drive more revenue from the existing customer base. In this context, leveraging customer retention strategies can help businesses to effectively gauge customer value over a certain period and ensure adequate amount of marketing investments toward profitable customers.
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The client is a Canadian retail company. The client witnessed a huge dip in their sales rate over three consequent years. The client’s failure to monitor their customers’ past purchase data and identify their likelihood to remain engaged with the brand was a major roadblock that prevented them from retaining valuable customers. Consequently, the client started losing customers to their competitors, which subsequently increased the customer churn rate.
The client, therefore, approached the experts at Infiniti Research to leverage their expertise in offering customer retention analysis. By leveraging Infiniti’s customer retention analysis, the client wanted to:
Drive long-term profits – To enhance their sales rate, the company invested heavily in acquiring new customers. However, this proved to be costly for the company. With Infiniti’s customer retention analysis, the client wanted to analyze past purchasing behavior of their customers and evaluate their net value for the company.
Devise promotional strategies – As the client’s previous marketing and sales strategies failed due to their inability to devise targeted promotional plans, they did not wish to take a chance. With Infiniti’s customer retention analysis, they wanted to efficiently segment their customer base and prioritize them based on their value. Furthermore, the client wanted to devise targeted promotional and sales campaigns and win back customers.
Devise value maximization strategies – With Infiniti’s customer retention analysis, they wanted to improve customer retention and acquisition strategies by understanding key factors considered by customers in the selection of the brand. Also, the client wanted to understand customers’ primary reasons for switching to a competitive brand and analyze the current satisfaction levels of their customers.
With over 17 years of experience in serving companies across the globe, we can guide you in developing personalized strategies to retain your high-value customers. Contact us to leverage our customer retention analysis.
The experts at Infiniti Research conducted a detailed retail market analysis as part of the customer retention analysis. This phase of the customer retention analysis helped the client to understand transformations and development in the market and their impact on retail companies’ sales. Also, the experts evaluated the potential demand for their products in Canada over the next five years.
The customer retention analysis also involved a customer segmentation analysis. This phase of the customer retention analysis helped the client to segment their customers based on their needs and preferences. Also, the experts prioritized customers depending on how they engaged with the brand.
As a part of the customer retention analysis, the experts also conducted a customer satisfaction survey. This phase of the customer retention program helped the client to understand the reasons for customers switching to other brands and also their demands regarding retail products.
The customer retention program further involved a competitive intelligence study, which helped the client to understand their strengths and weaknesses compared to the top retail companies in Canada. This further helped the client to monitor strategies undertaken by their competitors to retain valuable customers.
By leveraging Infiniti’s customer retention analysis, the client was able to analyze their customers’ past purchase behaviors and evaluate their value for the brand. Also, the client was able to devise targeted sales and marketing initiatives for their valuable customer segments. Furthermore, customer segmentation approach helped the client to target each group separately and drive maximum sales.
With Infiniti’s customer retention analysis, the client was able to efficiently invest their capital and resources towards profitable customers. Furthermore, a better understanding of customer needs helped the client in improving customer loyalty. Also, the company was able to win back their valuable customers and reduce the customer churn rate. As a result, the company was able to enhance customer retention rate by 27%.
Request for more information to know other benefits of leveraging our customer retention analysis.