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Using personalized campaigns to increase revenue and profitability

Technology Category
  • Analytics & Modeling - Big Data Analytics
  • Analytics & Modeling - Predictive Analytics
Applicable Industries
  • Retail
Applicable Functions
  • Sales & Marketing
Use Cases
  • Demand Planning & Forecasting
  • Predictive Replenishment
Services
  • Data Science Services
The Challenge
The retail client, based in Dubai, was already running in-store mass promotions every year to drive sales and enhance customer relationships. Each sale period ran for about four weeks and customers received a discount ranging from 25% -75% with every item they bought during the sale period. However, the client wanted to increase revenues and footfall and thus, asked Blueocean Market Intelligence to devise personalized targeted campaigns (BTL-Below the Line).
About The Customer
The customer is a leading retailer based in Dubai. They have a significant presence in the retail industry and regularly run in-store promotions to drive sales and enhance customer relationships. These promotions typically run for about four weeks, during which customers receive discounts ranging from 25% to 75% on every item they purchase. Despite these efforts, the retailer was looking for ways to increase revenues and footfall in their stores. They sought the help of Blueocean Market Intelligence to devise personalized, targeted campaigns.
The Solution
Blueocean Market Intelligence approached the challenge by performing customer segmentation using transaction level data. This allowed them to identify groups of customers and give the most weightage to the customer grouping with the highest RFM of purchase. The team used ‘association mining techniques’ to identify the products that could be bundled together and used segmentation/clustering approaches (Hierarchical/K-Means) to create store segments based on the similarities/differentiating factors such as product preference, ethnicity, promo response etc. The team then designed the most effective customer-centric, targeted campaign strategies using analytics techniques at strategic points in the client’s marketing campaign cycle.
Operational Impact
  • Identified the most likely promotion respondents along with the best possible combination of products to offer them
  • Helped to find the best product affiliations and devise strategies around product bundling, upselling, cross-selling and assortment planning
  • Identified the right marketing channel/depth of discount/assortment planning for each store segment

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