Demo Project Segmentation
Retail Customer Segmentation
Data-driven customer segmentation enabling targeted marketing campaigns with measurable ROI improvement.
Note: This is a demo project illustrating typical segmentation outcomes. Results vary by data quality and implementation.
The Challenge
A multi-channel retailer was treating all customers the same. Marketing campaigns went to everyone, with no differentiation based on purchase history, value, or behaviour.
- Same promotions sent to high-value and low-value customers
- No visibility into customer lifetime value
- Churn happening without warning
- Marketing budget spread thin across all segments
The Solution
We built a customer segmentation model using RFM analysis (Recency, Frequency, Monetary value) enhanced with behavioural clustering:
- Identified 6 distinct customer segments
- Built churn prediction model for at-risk identification
- Created segment-specific campaign recommendations
- Delivered actionable dashboard for ongoing monitoring
Typical Results
24%
Increase in repeat purchases
6
Actionable segments identified
Key Takeaways
- Segmentation is only valuable if it drives different actions
- Start with simple models (RFM) before adding complexity
- Ongoing monitoring catches segment drift over time
Ready to know your customers better?
Book a discovery call to discuss your customer data and segmentation opportunities.