Developing High-Value Customer Engagement Strategies to Drive Foot Traffic for a Fashion Retailer Using Target Market Segmentation

May 11, 2020

The nature of the fashion retail industry has changed dramatically over the past few years, so have the expectations of customers. Modern customers value brands that identify their individual needs and meet their rising expectations. As such, retailers need to adopt a more personalized strategy to drive foot traffic and grow share-of-wallet. This is where Infiniti steps in with its best-in-class target market segmentation analysis. Through target market segmentation, brands can improve return on investment through a buyer-based marketing strategy.

With a multitude of marketing channels available to retailers today, target market segmentation has become mandatory for marketers to target the right set of customers. RFP to leverage our target market segmentation analysis.

Business Challenge

The client is a fashion retailer based out of North America. The company has 30+ outlets in and around North America.

Traditional demographic segmentation methods were longer helping the client in addressing the needs and requirements of various groups. Also, the company had limited resources to spend on marketing. The client, therefore, wanted to gain an understanding of their customer database taking into account individual customer profiles, behavior, and transaction history. Also, they wanted to create a tailored marketing approach across different channels and offline promotional activity across all retail stores. The main objective was to move away from generic promotional offers to a targeted approach based on an improved understanding of customers. The client approached the experts at Infiniti Research to leverage their expertise in offering target market segmentation analysis.

Other key objectives of the client were:

  • Develop bespoke sales and marketing mix with promotional activity to suit each store’s specific target audiences
  • Optimize store and category space based on potential uptake of specific products
  • Improve customer engagement by providing the right products and pricing in the right stores
  • Develop tailored customer service appropriate to store strategy
  • Understand the seasonality and frequency of purchase

Looking to optimize marketing spend and engage customers through the right channels? Our target market segmentation analysis can help. Contact us here.

Our Integrated Approach

Infiniti’s target market segmentation involved gathering customer data, creating a roadmap, developing a deep understanding of the segment profiles, and quantifying the financial opportunities by segment.

Besides, experts at Infiniti Research undertook desk research to analyze the North American fashion retail sector. In this research, the experts considered several key variables such as the speed at which the brand was growing, company turnover, and more. Also, brand growth aspirations, fashion retail offerings, and funding details were gathered.

As a part of the target market segmentation analysis, the experts also validated the segment profiles and adjusted the overall segmentation strategy. After analyzing customers’ needs and attitudes, the experts conducted focus groups and qualitative studies to help the client understand the reasons for customer churn. Infiniti’s customer segmentation analysis helped the client to identify purchasing trends across multiple demographics and create successful marketing strategies based on that data.

Business Outcome

With Infiniti’s target market segmentation analysis, the client was able to identify their customers’ individual needs and meet their expectations. The client was also able to identify customers’ purchasing trends and create targeted marketing strategies. Besides, Infiniti’s target market segmentation provided the client with actionable data to better prepare their sales strategies.

By thoroughly analyzing customers’ spending history, the experts helped the client to identify the strengths and weaknesses of their marketing campaign and business model. Moreover, by tracking customers in segments, retail industry client was able to determine the best way to attract new customers, build brand loyalty, and create awareness around specific products.

In addition to this, Infiniti’s target market segmentation analysis helped the client to:

  • Develop high-value customer engagement strategies to drive foot traffic and reduce customer attrition
  • Deploy marketing budget to maximize ROI on most profitable segments
  • Drive more cost-effective marketing through tailored programs
  • Measure the effectiveness of campaigns by determining which offers, channels, and messaging drive the best performance for each segment
  • Deliver incremental sales, grow profitability, and reduce customer attrition

Target market segmentation can enable marketers to customize their target marketing approaches based on the behaviors of their customers. Request more info here.

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