Growth / Germany / FMCG
Improving customer retention through segmentation
"This solution offered an instrument for the direct approach of disloyal customers and, as a result, the client saw an improvement of customer retention."
Business issue
Our client, a manufacturer of coffee capsule systems, wanted to understand which customers were purchasing compatible products from competitors.
Previous research, involving a survey of roughly 600 participants, had already yielded important insights about the behaviour of disloyal customers. However, the client needed to expand these insights, and create a targeted plan, for the thousands of disloyal customers who had not participated in the survey.
Our solution
At Ipsos, we created a solution which involved receiving data from the manufacturer's CRM systems and then integrating this with the survey results about the usage of competitor products. Using this approach, we were able to derive a measure for brand loyalty based on each individual customer’s purchase history. The resulting segmentation was solely based on CRM data.
For more information on this case study, get in touch here.
Impact
This solution offered an instrument for the direct approach of disloyal customers and, as a result, the client saw an improvement of customer retention. In addition, the driver analysis yielded several important insights and highlighted the potential for market positioning improvement.
