Target Market Segmentation to Enhance Customer Retention Rate by 17% for a CPG Company

August 30, 2019

Target Market Segmentation Analysis for a CPG Company

Although the global CPG industry has been experiencing positive growth over the past few years, a variety of complex challenges such as pricing pressure, investment volatility, and customer experience management issues have started coming to the forefront. Owing to these challenges, new approaches to understanding the market, market niches, and target customers have become imperative for CPG companies to gain a competitive advantage. Also, it has become vital for CPG companies to reinvent the way they engage with their customers and focus on lucrative customer segments. However, this becomes extremely difficult without efficiently segmenting customers and prioritizing them based on their value for the brand. This is where Infiniti’s target customer segmentation comes into play.

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Business Challenge

The client is a CPG company serving customers across the Midwestern United States. The company spent over 33% of their overall marketing budget on wrong customer segments and marketing channels. Moreover, due to their unstructured approach to sales and marketing, they focused on targeting customers individually. As a result, the client encountered a huge dip in the sales rate. Also, the customer churn rate increased by 21%.

They realized the need to prioritize their target customers based on their value for the brand. By doing so, they wanted to direct their marketing budget into specific communication channels that would reach their target customer base. To do so, they approached the experts at Infiniti Research to leverage their expertise in offering target market segmentation.

Furthermore, by leveraging Infiniti’s expertise in offering target market segmentation analysis, the client wanted to:

  • Limit their target audience and focus on the lucrative customer segments
  • Efficiently categorize customers with similar characteristics such as age, gender, buying behavior, and spending patterns together and target them in a cost-effective manner
  • Analyze various customer segments and evaluate their value for the brand
  • Identify the needs, priorities, and common interests of the customers and adequately position their products to meet customers’ demands

Solutions Offered

Our experts conducted customer segmentation and need analysis as a part of the target market segmentation process. This phase of the target market segmentation analysis helped the client to segment their target customers into various groups based on factors such as shopping patterns, spending behavior, and their demands.

As a part of the target market segmentation strategy, our experts also conducted a customer satisfaction and loyalty assessment, which helped the client to understand the satisfaction level of their customers regarding their products and services. Also, by conducting a demo marketing campaign, the experts helped the client to identify the right channel to promote their product offerings.

The target market segmentation process also involved a sales assessment study, where our experts analyzed the sales data of the client and their direct competitors. The analysis of the past sales data helped the client to identify their frequent customers and products with the highest demand in the market.

Results Obtained

With Infiniti’s target market segmentation approach, the client was able to efficiently categorize their customers based on factors such as purchase patterns, spending behavior, interaction with the brand, past purchases, and their satisfaction level. This helped the client to efficiently devise targeted marketing and promotional campaigns for specific segments. Furthermore, by leveraging our target market segmentation strategy, they were able to effectively engage with their target customers and reduce customer churn rate. Also, with our target market segmentation solution, the client was able to efficiently utilize their marketing budget and enhance customer retention rate by 17%.


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