B2C, CPG Case Example
The Challenge: New Competitive Threat
The patent was about to expire for one of the OTC brands from this major pharmaceutical company – which meant a major increase in competition, especially private label. We applied data mining to profile the client’s database of approximately 300,000 users/responders in order to gain a deeper understanding of the current customer. The results were then used to optimize the CRM program, with the objective of keeping more users within the franchise.
The Challenge: New Competitive Threat
The patent was about to expire for one of the OTC brands from this major pharmaceutical company – which meant a major increase in competition, especially private label. We applied data mining to profile the client’s database of approximately 300,000 users/responders in order to gain a deeper understanding of the current customer. The results were then used to optimize the CRM program, with the objective of keeping more users within the franchise.
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The Approach Through data mining, we helped the client gain a better understanding of their customers, and created a comprehensive customer segmentation and a scoring mechanism which was then put to work through their CRM program. The approach involved:
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Data from a number of sources were blended and merged/purged to gain a deeper view of the customer.
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- Using advanced analytics to define behavior- and lifestyle-based customer segments
- Scoring all customer records based on segmentation results
- Replicating the segmentation model within syndicated research and media resources such as Experian Simmons to understand their attitudes, media habits, how they shop, and how best to connect with them.
The Results
This client’s primary vehicle for CRM is email marketing. The segmentation results were applied to this program to deliver the right content and offer to each segment.
This client’s primary vehicle for CRM is email marketing. The segmentation results were applied to this program to deliver the right content and offer to each segment.
- Email campaign results achieved a 94% increase in conversion over the control.
- Survey feedback indicated increased likelihood to purchase in the future and recommend to others.
- Added value: the segmentation results were also used to attract new “look-alike” customers.