Identify your most important (or potentially most important) customer segments according to revenue and profitability.
We can analyse your transactional records to determine what your customers buy from you, how much they spend and how often.
Segmenting your customer database according to their spending behaviour and lifetime value allows you to establish how much you can spend to acquire and also retain them. It also enables you to tailor your marketing efforts to specific segments, for example, by providing rewards for your high spenders.
Furthermore, analysing historical data enables us to forecast the spend potential of each segment leading to smarter business planning, marketing decisions and budget allocation.
Transactional data and customer segmentation analysis is therefore the bedrock for strategic planning, prioritising marketing activity and forecasting returns.
How we do it
- You provide us with a feed of transactional data from any number of existing channels (website, catalogue, store and so on) through secure data transfer.
- Our specialist partners analyse your customer data to provide both historical and present-day customer value across channels. Using methodologies, such as RFM modelling, we will segment your customer by a number of relevant attributes including:
o No. of purchases
o Product purchased
o Frequency of purchase
o Recency of purchase
o Lifetime value
o Cost of acquisition
o Acquisition source
- We will provide a report showing current and historical patterns and we segment your customer database into groups by their value now and predicted value in the future.
- We’ll then recommend appropriate acquisition and retention strategies for each segment to maximise their future revenue.
This transactional analysis and customer segmentation can be provided as a one-off project to help inform strategic planning or be regularly re-analysed to assess the impact of the marketing and business strategies you employ.
Get in touch with a member of our team to explore how we can help you make more informed business decisions by analysing your transactional data.