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Challenge
A nationwide retailer needed to devise a cost-effective system of acquiring new customers in the midst of a shrinking market and to enhance the loyalty of their current customers, while simultaneously extracting more value from them.
Solution
The Allant Solutions Team began by re-orienting the retailer's database - the first step in building its new CRM program. Then, they added new reporting capabilities, so the retailer could gather critical information about its customers. Next, the team developed a series of proprietary models, which were integrated into the data warehouse.
They segmented customers according to lifestyle and determined which groups were most valuable to the retailer. Then, the team used response and reactivation models to identify customers who were likely to reply to marketing offers. They also employed retention and risk models to predict which customers the retailer was most likely to lose. All model scores and customer segments were incorporated into the database.
Results
Using the critical insights gained from Allant's customer analysis, the retailer has been able to attract new customers, improve the retention of existing customers and significantly boost revenue.
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