Infiniti’s Customer Segmentation Analysis Helped a Leading Industrial Equipment Manufacturer to Target the Right Potential Customers and Drive Sales
Driving Sales for an Industrial Equipment Manufacturer with Customer Segmentation Analysis About the Client The client is a well-established industrial equipment manufacturer, headquartered in Canada. The company specializes in the manufacture of construction equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Business Challenge With the changing dynamics of the industrial equipment [...]READ MORE >>
Driving Sales for an Industrial Equipment Manufacturer with Customer Segmentation Analysis
About the Client
The client is a well-established industrial equipment manufacturer, headquartered in Canada. The company specializes in the manufacture of construction equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.
With the changing dynamics of the industrial equipment market space, market players have been compelled to predict the future of the industry and figure out their target customer segments for better decision-making. However, with most manufacturers focussing on the timely delivery of quality products to satisfy customer needs, it is becoming vital for companies in the manufacturing sector to assess changes in customer expectations and devise value maximization strategies to enhance their market share.
In this case, a well-established industrial equipment manufacturer was facing a decline in their sales volume, which accounted for over $2 million of their overall annual sales revenue. This radical decline in the sales revenue forced the client to identify the most profitable customer segments and measure the effectiveness of their marketing campaign. Doing so would help them to regain their momentum and improve their response to rapidly changing market conditions. Moreover, the client wanted to profile potential customer segments and efficiently allocate their time, money, and other resources in a cost-effective manner. The client, therefore, approached Infiniti to leverage our expertise in conducting effective customer segmentation analysis.
Top Challenges Faced by Industrial Equipment Manufacturer
Problem Statement 1: Keeping up with new technologies
With technological advancements, including automation, the industrial IoT, robotics, cloud computing and more, the client was struggling to keep up their market position. This led to a decrease in their sales and profit margins. With the help of customer segmentation analysis, the client wanted to analyze the industry trends and customers’ requirements to improve marketing budgets and resource allocation to achieve their business goals.
Problem Statement 2: Analyzing customers
With the help of Infiniti’s customer segmentation analysis, the client wanted to identify areas of improvement and drive performance consistently across customer groups.
Problem Statement 3: Lack of customer needs analysis
By leveraging Infiniti’s expertise in offering customer segmentation analysis solutions, the client wanted to analyze the demands of their customers and enhance customer experience.
Solutions Offered and Value Delivered
To address the challenges faced by the client, the experts at Infiniti Research adopted a comprehensive approach, which consisted of the following three phases:
Phase 1: Customer segregation
The initial phase of the customer segmentation analysis engagement revolved around the segregation of customer segments into three categories namely – geography, demography, and psychographics segments. This categorization helped the client to develop customized marketing messages that resonated with their end-customers and resulted in higher quality inbound leads for their products.
Phase 2: Improving product offerings
By segmenting customer groups to different sub categories, the client was able to gain a clear idea of who wants to buy their product and their key objectives behind buying the product. This helped them to differentiate their products according to customers’ needs. This further increased customer satisfaction rates and helped the client to attain better performance against competitors.
Phase 3: Spending more on lucrative opportunities
By analysing the lucrative market opportunities, the client was able to increase their win rate and business revenues.
With Infiniti’s customer segmentation analysis, the client was able to eliminate service bottlenecks and generate better returns on their marketing campaigns. They were also able to keep up with the new technological advancements and industry trends to respond rapidly to the changing market conditions. This helped them to efficiently allocate their time, money, and other resources in a cost-effective manner. Also, with the help of customer segmentation analysis, the client was able to increase their sales rate and target potential customers in a cost-effective manner.
What is customer segmentation analysis?
Customer segmentation analysis is the practice of dividing a company’s customers into groups that reflect similarities among customers in each group. The goal of any customer segmentation analysis is to decide how to relate to customers in each segment to maximize the value of each customer to the business.
If your company is at the expansion stage and you want to scale exponentially, you need to focus on selling to your best current customer segments as frequently and efficiently as possible. Wondering where to start? Request for more info on our customer segmentation analysis.