Recommended a two-dimensional framework segementation construct to target key customers
The Business Challenge
One of the largest eyeware retail groups in the Middle East and North America wanted to have a targeted loyalty program to increase revenue and decrease customer attrition.
Fractal implemented a two-dimensional framework segmentation construct that:
- Include segments with similar characteristics grouped to form distinct clusters and marketing campaigns speficially designed to target them.
- Could create a revenue forecast estimate after their current loyalty program was restructured to be in line with the segmentation.
Fractal discovered that the client’s restructured loyalty program and its marketing plan could jointly generate an estimated one-year revenue of $7-10 million.
Steps to increase value
- Get customers to sign up in the loyalty program
- Target relevant offers – Cross sell, spend stretch to increase the customer’s engagement
- Reward and retain the most valuable customers
- Fractal determined that 72% of the client’s customers who had a relationship with this retailer for 18 months or more visit an eyewear retail outlet after 24 or more months.
- Fractal realized that these long-term customers actually represent almost half of the client’s entire customer base and that they buy a single category of eyeware each visit.
- Fractal recommended cross-selling opportunities via mobile communications.
- Fractal restructured the loyalty program and marketing plan.
- The result was estimated to generate $7-10 million during the first 12 months.
- Fractal redesign the loyalty program based on customer segmentation this was not done in the past by the client.
- Fractal provided a revenue forecast and points issuance forecast for the client’s finance team