Customer Segmentation for Improved Acquisition and Engagement

Our on-demand retail client has a convenience app that lets customers order items for delivery in minutes. They employ a high-volume, multi-channel customer acquisition strategy to recruit new customers centered around their locations, primarily based in London. They were seeing declining response rates and app sign ups, and increasingly high cost per acquisition. They wanted to reduce their marketing spend, whilst growing their customer base, and needed to better understand their target audience(s).

We created a market segmentation, utilising what we knew about the client’s customers, their transactional behaviour and shopping habits, overlaid with demographic and lifestyle information. Our team built five different customer groups who shared similar characteristics and product purchases so that the client could focus their marketing spend on prospects who were likely to be both most responsive, but also importantly, profitable. The insight would also allow them to tailor their communications and creative/offers to be more attractive to each respective customer group

See how our segmentation and profiling enabled the client to tailor and personalise their customer communications to drive down the cost per acquisition, increase response rates and deliver profitable customers.