customer segmentation analysis Archives - Business Intelligence

Tag: customer segmentation analysis

Customer Segmentation

Why is Customer Segmentation the First Step to Growth and Success for Businesses? Customer Intelligence Experts Discuss

Introduction to Customer Segmentation

With the rising population, growing economies, rapid urbanization, and digitization, companies’ approach to sales, marketing, and product development have transformed to a great extent. Businesses have shifted their strategies to be more consumer-centric and driven toward ensuring customer satisfaction and loyalty. As competition increases, so does the need to attract and retain customers while maintaining mutually beneficial and healthy consumer relationships. These evolving business needs have led to the need for customer segmentation processes across industries.

Customer segmentation is categorizing consumers as per various parameters that may be geographic, demographic, or behavioral. These categories also vary based on the business models of businesses. For instance, B2B business models prefer to categorize their clients on factors such as industry, location, and workforce size. Whereas, in B2C companies, customers are classified according to factors including age, gender, spending behaviors, and value to the brand.

This process has proven highly effective and useful for various departments and functions within companies. It enables targeted marketing initiatives, helps develop well-received products, and improve the value of various customer-centric investments. Leveraging customer segmentation solutions help companies enhance sales, increase customer attraction and retention rates, and maintain healthy consumer relationships. In this article, Infiniti’s customer intelligence experts discuss the significant benefits of customer segmentation in various departments of businesses.

Struggling to engage, attract, and retain customers? Request a free proposal to learn how Infiniti’s customer segmentation solutions can help your business identify and target the ideal customer base for your offerings.

The Benefits of Customer Segmentation

Customer Segmentation

Improved Marketing Initiatives

Segmentation of customers helps marketing teams identify their target consumers and invest in developing efficient, targeted marketing initiatives. In a highly competitive market, ensuring that your business identifies and addresses consumers’ needs better than competitors can be a significant differentiator. Additionally, consumers are more likely to engage with content relevant to their personal needs, demands, and preferences. By identifying consumers’ needs, Infiniti’s customer segmentation solutions help businesses develop improved and targeted marketing initiatives and increase conversion rates with quality leads.

A business requires a strong and loyal customer base to scale and succeed. To learn how Infiniti’s customer segmentation solutions can help your business attain loyal customers, request more information.

Data-Driven Product Development

Developing a novel product that addresses target consumers’ needs can be highly challenging in a rapidly evolving market. Therefore, segmentation of customers and a comprehensive understanding of consumers’ unmet needs, gaps in the market, and particular demographic preferences help businesses develop unique products that address consumers’ demands. A data-driven product development process combined with targeted marketing translates into a successful product launch, improved customer relations, and higher consumer satisfaction. Infiniti’s customer segmentation solutions help businesses developed personalized products and services and reduce ineffective investments.

Increase in ROI

Lastly, customer segmentation enables quality over quantity. Personalized offerings and targeted marketing initiatives lead to acquiring and retaining high-quality leads, increased customer loyalty, and stable growth. While the process requires streamlining the target audience and losing a wider customer base, it enables improved approaches with a higher chance of converting into fruitful transactions or contracts. Targeted marketing initiatives with higher returns lead to a significant ROI and helps businesses maintain a well-informed marketing budget. Additionally, companies avoid investing in the research, development, and launch of products that fail to meet revenue expectations or improve customer attraction and retention. Infiniti’s customer segmentation solutions have helped businesses across industries determine an improved marketing budget, conduct an efficient product development process, and realize significant savings.

Speak with our experts to leverage our expertise in enabling targeted marketing initiatives, data-driven product development, and improved ROI with customer segmentation solutions.

Customer Segmentation + Online Healthcare Service Provider

Analyzing Consumer Needs and Improving ROI for an Online Healthcare Market Client with Customer Segmentation Solution

Online Healthcare Market Overview

The healthcare industry adapted to the rise of digitization rather quickly and efficiently. Over recent years, the rising adoption of mobile devices, the introduction of the Internet of Things (IoT), and the promotion of online services have given rise to the vast field of digital healthcare. Online healthcare services range from providing relevant medical information, online consultations, health education services, and more. As digitization continued to spread, online healthcare market players aim to improve their offerings, differentiate their strategies from competitors, and address their consumers’ unmet needs. Therefore, many industry leaders leverage customer segmentation solutions to gain an in-depth understanding of their consumers.

Infiniti’s customer segmentation solutions have helped many companies categorize consumers, evaluate their needs, identify profitable customer segments, and adapt their strategies and offerings to accommodate for their consumers’ demands. Customer segmentation also enables improved marketing strategies, personalized offerings, better product development, and higher patient engagement rates. In the growing online healthcare services market, it is becoming increasingly crucial for companies to attain and understand their consumers’ opinions and feedback proactively. To scale successfully, market players must prioritize their consumers’ needs, demands, and preferences.

Advancement and progress are imperative in the healthcare industry, and the online healthcare market is an example of the same. To keep growing with the market and ensure high customer satisfaction levels, request a free proposal.

Scope of the Customer Segmentation Engagement

Over six weeks, the online healthcare service provider gained in-depth insights into the evolving digital healthcare sector and understood their consumers’ needs and preferences. Infiniti’s customer segmentation engagement also helped the service provider categorize their customers and develop improved marketing initiatives, pricing strategies, and offerings as per consumer needs. The offering included a market segmentation analysis, a competitive benchmarking analysis, developing targeted marketing initiatives, and customer satisfaction assessment.

Business Challenges

The client, a leading online healthcare service provider, struggled to keep pace with the rising competition and witnessed a steady decline in customer attraction and retention rates. The service provider was losing market share due to their traditional marketing approach, while competitors employed targeted marketing initiatives. To address the high customer attrition rate, the client sought to gain a comprehensive understanding of their consumers’ needs and preferences and analyze their competitors’ marketing strategies. Therefore, the online healthcare market client sought to partner with Infiniti Research and leveraged our customer segmentation analysis expertise. By categorizing their consumers based on factors such as spending behaviors, age, gender, and value for the brand, the client wanted to increase their customer retention rate and gain a strategic edge in the online healthcare market.

Continual customer attraction and retention is crucial to the growth and success of any business. Request more information to learn how Infiniti’s customer segmentation solutions can help your company grow and succeed in the healthcare industry.

Our Integrated Customer Segmentation Approach

Infiniti’s customer segmentation experts developed a comprehensive approach consisting of three phases to help the online healthcare services provider address their challenges. For the first phase, our experts conducted a customer satisfaction and need assessment to evaluate the efficacy of the client’s offerings and assess consumer feedback regarding the client’s services and platforms.

In the second phase, Infiniti’s customer segmentation experts categorized target market segments according to their age, gender, spending behaviors, and value for the brand. Providing the client with crucial insights into the personalized needs of the different customer segments and enabling improved marketing initiatives and product development.

Our experts then conducted a detailed competitive benchmarking analysis to identify and evaluate key competitors’ and industry leaders’ strategies in the engagement’s final phase. The study also provided the client with comprehensive insights into successful marketing approaches and efficient customer attraction strategies.

Business Outcome

Customer Segmentation + Online Healthcare Service Provider

Leveraging Infiniti’s customer segmentation analysis provided the client with unparalleled insights into their consumers’ needs and preferences, helped them identify and adopt better marketing strategies, and enabled data-driven product development. Customer segmentation conducted by the analysts’ team helped the client understand and meet their consumers’ varying demands and unmet needs. With our experts’ recommendations, the client developed an extensive targeted marketing initiative that helped attract customers. Additionally, with the customer satisfaction assessment information, the client made crucial and relevant changes to their platform and offerings to meet customer expectations, which helped increase their customer retention rate substantially.

The competitive benchmarking analysis provided the client with insight into successful marketing strategies employed by industry leaders and helped them develop an unparalleled marketing approach. The online healthcare service provider also focused on personalized product development, based on the data acquired from the customer need assessment. With the customer segmentation solution, the client increased their customer attraction and retention rates, improved their ROI from marketing, exceeded their revenue expectations, and regained a substantial market share in the online healthcare market.

Identifying, analyzing, and understanding consumers’ needs is the first step to the top in the online healthcare market. Speak with our experts and gain comprehensive insights into the value of customer segmentation analysis in your market.

Mobile Development Services + Customer Segmentation

Offering Mobile Application Development Services and Efficiently Overcoming Challenges

Recently, the world has watched the US IT & Telecom industry proliferate. The most prominent growth has been in demand for mobile application development services. As mobile phones, handheld devices, and convenience take over the preferences of consumers, the mobile application development market continually faces new challenges. Understanding customers’ changing needs and preferences has become a crucial component of developing, launching, and succeeding in any way.

For companies that offer mobile application development services, it has become crucial to identify, analyze, and segment target customers. The benefits of customer segmentation analysis are limitless; most importantly, they help to understand continually changing preferences and consumer issues. Additionally, it helps overcome critical market challenges as well.

As consumers’ lives become more hectic, demanding, and technology-driven, smartphones have become a necessity. Digital transactions, eCommerce shopping, streaming entertainment, and online medical consultations are some of the many functions that smartphones hold within them. Mobile application development services help companies develop these apps and provide consumers with the various functionalities they request or need.

However, with changing times, there are different challenges faced by all mobile application development market players. Infiniti’s research experts identified and analyzed consumers’ needs, preferences, and challenges, as well as the challenges faced by companies that offer mobile application development services. In this article, they provide in-depth insights while also discussing the best possible solution in the future, i.e., customer segmentation analysis.

To be an industry leader in the highly competitive mobile application development services market, request a free proposal.

Understanding End-User Preferences and Complaints

Before discussing the challenges of the industry, and the changes that mobile application development market players need to incorporate in their operations, it is crucial to understand the consumers. Infiniti’s industry experts have studied and discussed some of the critical needs and complaints of consumers:

  • Intuitive User-Interface: As all functions become fast-paced and transactions become easy and quick, consumers prefer to have similar experiences when interacting with a mobile app. When developing an app, mobile app development services providers need to plan for a user interface and user experience that is intuitive, easy to access, and functional. While aesthetics are important, practicality is a more significant focus. When it comes to in-app purchases or eCommerce shopping, a complicated transaction process can lead to customer attrition.
  • Personalization: Consumers highly prefer mobile applications that offer personalized experiences and targeted content. For instance, the high personalization of music playlists on music streaming applications helps consumers find more artists they enjoy. In various apps, information such as location, search histories within the app, and mutual connections help establish a personalized experience and provide further convenience for customers. This also helps provide personalized offers, and therefore, increases chances of conversion. To gain exclusive insights into the mobile application development market dynamics and end-user perspective from industry experts, gain limited period free access to our resource here.
  • Battery and Storage issues: While customers prefer mobile applications that serve various functionalities, and create an ideal experience, a common complaint is battery drainage. Losing battery life can be a personal or professional crisis for customers. Additionally, customers often complain about storage and memory issues due to file size. Due to these complaints, mobile application development service providers are tasked with creating highly functional and small mobile applications that do not drive down battery life. However, this is easier said than done.

Mobile Application Development Services Market: The Challenges

There are many challenges currently plaguing companies that offer mobile application development services. The process of mobile application development is long-drawn, highly complex, and some challenges the market faces due to this are discussed below:

Rising Competition

With the rising demand for smartphones, tablets, and other handheld devices, the need for various mobile applications has grown substantially. This change has led to constant innovation and development in the market. There has recently been an upsurge in the number of companies and individuals offering mobile application development services. The increasing new market entries, rising demand, and constant innovation have made the mobile application development services market highly competitive and challenging. However, developing a mobile application requires more than simple coding abilities. Some of the top mobile application development service providers have turned their focus on identifying and understanding their target customers. Further, leveraging customer segmentation analysis, allows companies to improve their marketing, and reach a broader, more appropriate audience for their application.

Identifying Target Markets

Identifying target markets is highly crucial in the mobile app development process. Not solely for marketing, but more importantly, to understand the need for the mobile application being developed. For instance, once a mobile application developer identifies the target market, the next step would be establishing if the market is substantial enough to provide revenue. Additionally, different target markets require the functionality of varying kinds. An eCommerce application for homemakers would require different functionality, as compared to travel apps for young adults and college students. Developing an app that considers, and efficiently incorporates these needs helps increase downloads, active users, and the chances of conversion to premium or other paid services if applicable. Customer segmentation allows companies to accurately identify and categorize target customer groups, with an understanding of customers’ preferences, complaints, and requirements.

Variety of Devices

Another challenge created by the increasing demand for handheld devices is the variety that has been developed over the years. Varying screen sizes, operating systems, service carriers, and configurations have made mobile application development an even more complicated task. Screen sizes for phones range tremendously, in pixels and inches. Screen resolutions differ between brands, companies, and phone models. Creating a mobile application that is conducive to all resolutions and sizes is a challenging prospect.

Additionally, though Apple monopolizes the iOS market, android phones are produced by many companies, and Windows is the third operating system. Mobile application development service providers must offer mobile applications that are applicable and viable for smartphones and handheld devices across operating systems and companies. These two factors are among the most challenging issues in the process of developing an app.

Safety and Security

In a world where personal data needs to be protected at high costs, and customers’ smartphones hold high levels of personal data, mobile application development service providers need to create secure and safe applications. Guaranteeing the safety and security of personal data is one of the most attractive factors for specific applications. For instance, banking apps, password storing apps, and even regular eCommerce sites, often hold crucial passwords and information that can cause substantial damage if leaked. While iOS has a specific set of security guidelines, android and windows do not, and failing to provide security can cause misuse and manipulation, customer attrition, and significant monetary losses.

Mobile Development Services + Customer Segmentation

Understand how Infiniti Research helps companies strategically overcome these challenges by speaking to our experts.

Customer Segmentation Analysis: Why is it the best way forward?  

Customer segmentation analysis allows companies to identify, categorize, and analyze the most profitable and effective customer segments in the market. For mobile application development service providers, this directly translates into developing and launching highly efficient and popular mobile applications. Customer segmentation further allows mobile application development market players to overcome the market challenges by providing critical insights into their target customer segments, and customers’ needs and preferences. This further gives companies a competitive edge, and helps them gain a larger market share, and substantially enhance sales.

To further learn the importance and benefits of customer segmentation analysis in the mobile application development services market, request more information.

telecom

Customer Segmentation Analysis Aligns a Telecom Company’s Growth Strategy with Customers’ Needs

The client, a global leader in the European telecom industry for more than a decade, wanted to segment its large enterprise customers and develop strategies to meet their changing digital communication-based needs. With Infiniti’s customer segmentation analysis, the company boosted enterprises sales by 20% and maintained its leadership in the fast-evolving telecom market.

Customer Segmentation Analysis for a Telecom Company

Business Challenges Faced:

As revenue continued declining in some of the core services, the client started losing ground to its competitors. To win back the market share, the client launched a new growth plan. However, the new growth strategy did not help the client in addressing the complex issues eroding the company’s growth. This was because the client lacked a unified view of its customers’ issues and products to keep pace with their growing digital communication needs. As such, they collaborated with Infiniti Research to leverage their expertise in offering customer segmentation analysis. By leveraging Infiniti’s customer segmentation solution, the client also wanted to:

  • Segment a large customer base into a more manageable group
  • Alter marketing focus and strategy to meet the needs of the different segments
  • Enhance distribution strategies
  • Create targeted strategies that capture customers’ attention

How can companies in the telecom industry prepare for the rebound and ensure business continuity? Our COVID-19 business continuity support solutions can help clients in the telecom market to understand the change in volumes and values post the COVID-19 crisis. Request a FREE proposal.

The Approach:

As a part of the customer segmentation analysis, the experts at Infiniti Research helped the client to segment its large customer base into different groups. This helped the client to design a tailored growth strategy for different groups. Infiniti’s customer segmentation analysis also involved developing a process for outsourcing the sales and delivery of new communication services. This further helped the client to deliver services on time and enhance the customer experience.

Infiniti’s customer segmentation analysis also involved working closely with the client to reverse declining revenues and enhance profitability. In addition to this, our experts recommended the client to launch specific networking services for its customers.

Business Outcome:

Infiniti’s customer segmentation analysis helped the client to achieve a revenue goal for its enterprise business. Also, based on the recommendation of the experts, the client established an account planning process to maximize sales opportunities. Besides, with market segmentation analysis, the client was able to align sales, delivery, products, and pricing to increase sales of services for each customer segment.

In the first year alone, the telecom company exceeded its growth target by 11% and grew its networked services business by 17%. In addition to this, with Infiniti’s customer segmentation analysis, the client improved account planning for its customers boosted company sales by an additional 30%.

Besides, by leveraging Infiniti’s customer segmentation analysis, the client was able to:

  • Acquire new customers and retain valuable ones with responsive and cost-effective call center support and different pricing strategies based on customer segments
  • Upgrade services to provide customers with superior service
  • Focus sales around targeted customers and align sales, delivery, service, and products around services growth

Want to know more about our COVID-19 business continuity support solutions? Request more info here.

Customer experience management

Enhancing ROI by 23% for a Retailer by Devising a Customer Buying Journey Map

As the retail market is constantly evolving, personalizing the sales process to the buyer’s context is becoming vital for retailers. In addition, to improve customer experience, retailers need to understand how customers interact with the brand. To do so, retailers will need to map their customers’ journey from awareness to the purchase stage. This is where a customer buying journey analysis comes into play. Customer buying journey analysis helps businesses to understand the actions their customers take while engaging with the brand and the various touchpoints where they interact.

Around 70% of retailers agree that personalization has enhanced their overall marketing and sales strategies. Customer buying journey analysis can help businesses to devise personalized offerings by helping them map their customers' buying journey. Request a FREE proposal today!

Business Challenge

The client is a retail company based out of Germany.

In an endeavour to enhance its market share, a well-known retailer wanted to stay updated on the customer buying behavior and purchase patterns in the German retail market. In addition, they wanted to analyze their customer buying journey to devise personalized product offerings, develop better marketing strategies, and drive sales. They approached the experts at Infiniti Research to leverage their expertise in offering customer buying journey analysis.

Furthermore, by leveraging Infiniti’s customer buying journey analysis, the client wanted to:

#1: Enhance marketing ROI through better targeting and more personalized offerings

By leveraging Infiniti’s expertise in offering customer buying journey analysis solution, the client wanted to devise personalized marketing and sales strategies for different customer segments and efficiently utilize their marketing budget to drive sales.

#2: Enhance the brand image

By leveraging Infiniti’s customer buying journey analysis, the client wanted to analyze the actions their customers take while engaging with the brand and the various touchpoints where they interact. By doing so, the client wanted to understand areas where their brand needs to improve.

#3: Enhance customer experience

By analyzing customer buying journey and their needs, the client wanted to create a better in-store customer journey and enhance CX.

Wondering how to retain your valuable customers and provide exceptional customer experiences? Our customer buying journey analysis can help. Contact us today!

Solutions Offered

The initial phase of the customer buying journey analysis involved a customer segmentation analysis. In this phase, our experts helped the client to identify the most profitable customer segments and segment them into separate groups based on their value for the brand.

The next phase involved a customer satisfaction and loyalty assessment. In this phase, our experts conducted surveys and examined customer buying journey. This phase of the engagement helped the client to understand customers’ satisfaction level regarding their product. Also, the client was able to understand marketing channels where they needed to focus and areas that needed improvement.

In the final phase, our experts carried out a sales and marketing analysis, where they measured the effectiveness of marketing campaigns across different channels and conducted demo campaigns.

Results Obtained

The insights obtained Infiniti’s consumer buying journey analysis helped the client to devise a customer buying journey map and personalize their marketing and sales strategies to drive maximum sales. Furthermore, by understanding how customers interacted with the brand, the client was able to devise personalized product offerings and create a better in-store customer journey.

In addition, they were able to identify the right marketing channels to invest into and drive customer engagement. In one year, they were able to enhance their marketing ROI by 23%.

Elements of a Customer Journey Map

Capture

Request for more info to know how analyzing customer purchase journey can help you efficiently engage with your customers and boost sales.

benefits of market segmentation

Unearth New Opportunities and Drive Profits with Customer Segmentation Analysis

With the proliferating marketing platforms today, customer segmentation analysis has become a pre-requisite for businesses to boost sales, reduce attrition, and improve prospect and customer experience. Also, around 70% of CMOs agree that customer segmentation analysis is extremely valuable in providing a great customer experience.

By segmenting customers into various groups that share similar needs, organizations can devise personalized marketing strategies for each group differently and focus on all customer needs at any given time, making marketing and customer care more organized and targeted.

Infiniti’s customer segmentation analysis solutions have helped several Fortune 500 companies devise customized approaches that satisfy the needs of different customer groups and drive customer loyalty and profitability.

Below, we have summarized some of Infiniti’s success stories that highlight how customer segmentation analysis has helped companies to gain a leading edge in today’s competitive marketplace.

Elevating Sales by 17% for a German Retailer with Customer Segmentation Analysis

With a multitude of choices available for customers in the retail industry, developing a robust marketing strategy to target specific customer segments is becoming important in the retail industry. Don’t you agree? This success story is an excellent example of this. A retail company was finding it difficult to segregate the customers in terms of need-based and value-based segments in the German market. Also, they faced issues in managing attrition rate and acquiring new customers. They were looking for a market research firm to help them in segmenting customers based on their value for the brand.

Infiniti’s market intelligence experts helped the client to devise a sound commercialization strategy to effectively engage customers and enhance customer retention. Also, our retail customer segmentation analysis engagement helped the client to elevate sales rate by 17% within a year.

A Leading Fashion Brand Curtailed Losses and Increased Revenues by 20% with Customer Segmentation Analysis

Worldwide e-commerce growth is on the rise, and it has placed immense pressure on fashion retailers to differentiate themselves and provide superior shopping experiences in-store. However, to devise personalized marketing approaches, businesses require a thorough understanding of their customers and their needs. This is where the real benefit of leveraging customer segmentation analysis comes into play.

Customer segmentation analysis can help in dealing with such issues efficiently. This is clearly evident in this success story where the client, a fashion retailer, was facing similar predicaments. The company also encountered a substantial reduction in the number of frequent and repeat buyers.

Infiniti’s customer segmentation analysis solutions helped them to develop a well-aligned business plan to deliver sustained growth and empowered them to break through the cluttered market space with a unique and convincing proposition. Moreover, they were able to improve their wallet share and increase their overall revenue by 20%.

Enhancing Customer Retention Rate by 20% with Customer Segmentation Analysis

In the increasingly fast-paced banking industry, companies need to constantly evaluate the market and expand their offerings. Also, there is immense pressure to improve profitability and customer experience while adapting to the disruption caused by rising FinTech companies.

Our client, a banking company based out of the United States was facing the same dilemma. As such, they were looking for a research firm that could do an independent analysis of potential investment opportunities and provide detailed insights into their customers. Additionally, they wanted to segregate their customers based on their geography, psychography, and behaviors into separate groups and devise customized marketing approaches to gain maximum traction.

Our experts adopted a comprehensive three-phased approach to help the client develop a new customer segmentation approach and predict the future value of customers for the brand. Also, Infiniti’s solution helped the client to analyze the key drivers of customer satisfaction and devise suitable strategies to counter the decline in sales. In addition, they were able to enhance customer retention rate by 20%.

Retaining the Most Lucrative Customer Segments with Customer Segmentation Analysis Approach

Identify and implementing appropriate customer segmentation strategy models to profile and retain valuable customers seems to be challenging for businesses. This is where a custom market research service provider like Infiniti Research can make your work easier, as it did for a transportation services provider. The company wanted to devise a value-based approach to define their best prospects in the market. Moreover, they wanted to profile and target lucrative customer segments and avoid bottlenecks pertaining to the delivery of products.

With Infiniti’s customer segmentation analysis solution, they were able to profile customers into various segments and tailor marketing efforts for them. Furthermore, our customer segmentation analysis approach helped the client to devise a value-based approach to retain the most profitable customers.

product marketing strategy

The Perks of Using Customer Segmentation Analysis in Retail

The retail industry is undergoing a rapid phase of change as brands are increasingly focusing on developing highly personalized customer experiences. Furthermore, the rising market competition has resulted in increasing customer expectations. Customers expect brands to understand their individual needs and provide an exceptional customer experience. To achieve this, retail companies must move on from the one-size-fits-all approach to a more personalized approach in order to cater to different customer needs. This is where the role of customer segmentation analysis comes into play. Customer segmentation analysis in the retail industry involves arranging a broad customer base into smaller subgroups. These subgroups represent a common customer need or goal. Retailers can then formulate strategies to satisfy the needs of each of these customer segments.

It is increasingly important for marketers to send relevant messages that are tailored to the appropriate stage of the purchase funnel. Infiniti’s customer intelligence solutions combine the best data gathering approaches to identify the most profitable customer segments, measure the effectiveness of a marketing campaign, assess changes in customer expectations, and devise value maximization strategies to enhance their shares. Request a free proposal to know more about our customer intelligence solutions.

Benefits of customer segmentation analysis in retail

Customer segmentation analysisRetail marketers are constantly on the lookout for ways to attract more customers by improving the effectiveness of their campaigns. Customer segmentation analysis can help them better plan their marketing strategy. Additionally, having a customer segmentation model also helps retailers understand what offers or product customizations will work with each group of customers.

Individualize customers

Marketing, customer services, and even product development can be made more effective with the help of customer segmentation analysis by giving retailers comprehensive insights about their specific customer groups. Not every shopper has the same expectations from a brand. Without a customer segmentation model that reflect the needs of customers more accurately, retailers often struggle to meet customer expectations.

While most retailers know they need a sophisticated approach to customer segmentation analysis, many still struggle to understand their customer with a 360-degree view. Get in touch with us to know how we help our clients identify target customers, realize factors that drive customers to competitors, gain a clear understanding of budgets and timelines, compare product or service pricing, and also understand customers’ decision-making process.

Collecting smarter data

Customer segmentation analysis not only helps retailers gain a better understanding of their customers, but it also helps them evaluate their own performance. Different metrics relating to marketing campaigns, sales, and other incentive programs can be broken down into different segments based on the customers’ transactional data. Additionally, most cloud-based POS solutions record and update customer data automatically whenever they make a purchase. This information is then synced across all retail locations and connected devices. When grouped into different segments, customers’ spending history can be used to pinpoint the strengths and weaknesses of the marketing campaign and business model as a whole.  Moreover, customer segmentation analysis also provides retailers with a better idea of who buys what, which can be used when expanding products or adding new merchandise.

Enhancing marketing campaigns

One of the biggest advantages of customer segmentation analysis is that it helps in enhancing the marketing campaigns of retail companies. By tracking different customer groups, retailers can analyze different variables that will help them determine ways to attract new customers, build brand loyalty, and create awareness around specific products.

Customer segmentation analysis

Gain more insights on Infiniti’s customer intelligence solutions

You may also like : 

Customer segmentation analysis

Customer Segmentation Analysis Increases Sales Conversion and Reduces Customer Churn for a Retailer – Infiniti Research’s Latest Success Story

Retail Customer Segmentation Analysis

The retail industry has changed dramatically over the past few years. This rapid pace of change has put immense pressure on retail companies to keep up with ever-changing customer expectations. Retail companies have also been forced to identify lucrative customer segments and devise value maximization strategies to boost profitability. This is where customer segmentation analysis comes into play. Customer segmentation analysis helps retail companies to gather comprehensive insights to deepen customer loyalty and pinpoint their marketing strategies.

Customer segmentation analysis can help you precisely define your customers’ needs and create better value for them. Request a FREE brochure to gain detailed insights into our services portfolio and to learn how our customer segmentation analysis will help you assess changes in customer behaviour and measure the effectiveness of a marketing campaign.

Business Challenge

The client is a retail company based out of North America. As the client was new to the US retail market, they were facing difficulties in understanding their customers’ buying preferences, likes and dislikes, and shopping patterns. However, before investing huge capital into the business, the client wanted to gather deeper insights around their target customers to tailor personalized strategies. They also wanted to customize their marketing activities based on their customer behaviour. To do so, the client approached the experts at Infiniti Research to leverage their expertise in customer segmentation analysis.

By leveraging Infiniti’s customer segmentation analysis, the client wanted to:

Improve product and service offerings – By leveraging Infiniti’s customer segmentation analysis, the client wanted to gather relevant data on their customers’ needs to differentiate their product and service offerings. By doing so, the client wanted to enhance customer experience and outpace their competitors.

Enhance revenue – The client realized that putting efforts into the wrong segment can prove to be costly for the company. This can even increase the churn rate and lower upsell potential. The client, therefore, wanted to identify the profitable customer segments and promote their products and services.

Increase sales – With Infiniti’s customer segmentation analysis, the client wanted to specifically target their profitable customers and establish a perfect strategy to drive sales.

Focus on marketing activities – By efficiently segmenting customers into different sub-groups, the client wanted to create customized and focused marketing messages to capture customers’ attention.

Our Approach

To help the client segment the customer base, the experts at Infiniti Research performed customer segmentation analysis. Customer segmentation analysis approach involved segregation of the client’s customer groups into three categories namely – geographic, demographic, and psychographic segments. Also, the experts grouped customers into different segments using insights gathered from the research. The factors such as customer spend, frequency of purchases, channel usage, categories in which customers purchase, discount vs full price shoppers, and margin per customer was taken into consideration while grouping customers into various segments.

Results and Key Offerings

By segmenting customers into different sub-categories, the client was able to gain detailed insights into their customer segments. This helped them to differentiate their products according to customers’ needs. By leveraging Infiniti’s customer segmentation analysis, the client was also able to create targeted advertising and marketing campaigns for different subsets of customers. Furthermore, with customer segmentation analysis, the client increased sales conversion and reduced churn rate by 23%.

KEY FINDINGS AND OUTCOMESInfiniti’s customer segmentation analysis also helped the client to:

Increase competitiveness – By categorizing customers into various sub-categories based on their needs and requirements, the client was able to efficiently cater to their requirements and capture their attention by providing personalized offerings. This helped them to gain a leading edge in the market compared to their competitors.

Increase customer retention – Customer segmentation analysis helped the client to better serve their customer base. This helped the company to increase customer loyalty. Furthermore, this increased customer retention rate and reduced customer churn.

Optimize product price – By gathering detailed insights into the target customer segments, the client was able to efficiently price their products. By optimizing the product price, the client was able to ensure that customers get the most value for their dollars. Also, the client was able to enhance sales and revenues.

Customer segmentation analysis can help you precisely define your customers’ needs and create better value for them. Request a FREE brochure to gain detailed insights into our services portfolio and to learn how our customer segmentation analysis will help you assess changes in customer behaviour and measure the effectiveness of a marketing campaign.

What is customer segmentation analysis?

Customer segmentation analysis is defined as the process of categorizing a company’s customer into various sub-groups based on their characters and requirements. By grouping customers with similar characteristics, companies can easily devise value maximization strategies and create personalized marketing campaigns. Customer segmentation solutions have helped several companies to make strategic business decisions and thereby boost their revenue.

BENEFITS OF CUSTOMER SEGMENTATION ANALYSISWhy customer segmentation is the key to marketing?

In today’s customer-oriented world, the right customer segmentation can help businesses determine the most valuable customers and build marketing campaigns that suit them. In the long run, this will improve your brand loyalty and increase customer engagement. This success story from Infiniti Research describes how a leading transportation services provider was able to achieve these goals with our customer segmentation strategy.

Customer segmentation analysis can help you precisely define your customers’ needs and create better value for them. Request a FREE brochure to gain detailed insights into our services portfolio and to learn how our customer segmentation analysis will help you assess changes in customer behaviour and measure the effectiveness of a marketing campaign.

Market Assessment

A Leading Fashion Retail Brand Curtailed Losses and Increased Revenues by 20% – A Customer Segmentation Case Study

Business challenge

Over the last decade, the retail industry has undergone incredible disruption, largely impacting how customers shop and what they expect and demand from retailers. Fashion retail is one of the most dynamic segments in retail, wherein companies have to keep a constant watch on the changing trends. A failure to do so would result in a considerable decline in their market share. Although fashion retail is a highly united industry, the owners of fashion brands may find it difficult to thrive in the fiercely competitive industry due to its ambiguous nature. As the pace of change in the fashion retail industry accelerates, the need to have an innovative and sustainable customer segmentation models have become imperative.

Recently, a fashion retailer based out of Central Europe faced a decline in their overall sales rate. They also noted a substantial reduction in the number of frequent and repeat buyers. The company, therefore, approached Infiniti Research to undertake a detailed analysis to better understand the European fashion retail industry. The client wanted to leverage our customer segmentation solution to examine customer behavior, identify segments with a high potential for losses, and devise a mechanism to better understand the changing customer needs.

Building a customer segmentation strategy is no easy task, but within the retail sector, it is quickly becoming a necessity. Request a FREE brochure to know how our solutions can help you build an ideal customer segmentation strategy.

Solutions offered and value delivered

Infiniti’s customer segmentation analysis included a study based on a combination of factors such as customer needs, purchase patterns, attitudes, and behaviors. The customer segmentation solution offered to the client helped them uncover lucrative, under-served customer segments. Furthermore, gleaning insights into the potential customer segments helped the fashion retailer to determine the profit potential of each segment by analyzing its revenue and cost impact. The unique customer segmentation strategy also empowered the client to differentiate their brand from the global competition. This, in turn, helped them break through the cluttered market space with a unique and convincing proposition.

Targeted and focused strategies are the key to survival in today’s competitive world. Learn how we can help you devise an ideal go-to-market strategy. Request a free proposal.

In a span of eight weeks, the client was able to transform their operating model into a more segmented, customer-relationship based structure. This helped them to improve their wallet share and increased their overall revenue by 20%.  Moreover, with the help of Infiniti’s customer segmentation solution and recommendations, the client was able to increase their customer retention rate by 2X.

Importance of customer segmentation

customer segmentation

Facing similar predicaments in your business? We’re here to help! Get in touch with us.

Close
Infiti Logo

Hello there!

Contact us to know more about our cost-effective custom market research offerings to support efficient market penetration, new product launch, and devise strategies to monitor and outperform your competitors.

Cookie Policy

The Site uses cookies to record users' preferences in relation to the functionality of accessibility. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice