Imagine you’re the CMO of one of the most loved food brands in Europe. Every day customers flock to your stores, and are so committed that your successful subscription scheme is used over a million times per week..

Sounds great, right?

One of our clients found that with great success, also comes increased scrutiny. So how with a highly engaged customer base do you use data to precisely measure incrementality, and find opportunities to increase value and continue to grow profitably?

Opportunity

The client, a cornerstone of many a busy morning commute, needed to understand who their subscription customers were, how they behaved, and why some might stray towards other culinary pastures.

The ultimate goal? To build logic that would help them deliver targeted communications and promotions to customers in order to reduce churn and maximise lifetime value.

Solution

By analysing and segmenting a huge amount of customer transaction data, we were able to create a churn model and identify a number of value groups.

We then documented a set of value drivers, broken down by key customer behaviours, with the aim of driving frequency and attachment spend.

Outcomes

Through our extensive data analysis, we were able to:

• Identify churn pain points: We discovered the telltale signs that indicated a customer was about to ditch their subscription. Armed with this intel, the retailer was able to launch targeted campaigns to win them back, like exclusive offers or limited-edition treats.
• Value grouping: We sorted customers into different "value tribes" based on their spending habits and behaviours. These insights were incorporated into a brand new "Customer Playbook" - a guide for the retailer to tailor their approach to each group and maximise their value.

Impact

Our data-driven insights were a game-changer for the retailer. They were now equipped with:

• Enhanced targeting: The client can now send the right message to the right customer at the right time, keeping them loyal and engaged, and ensuring maximum impact.
• Behaviour boosters: By understanding what makes their customers tick, the retailer can nudge them towards more frequent visits and higher spending, boosting their overall value.
• Reduced churn: Armed with valuable churn insights, the retailer’s targeted efforts can prevent customers from saying goodbye, keeping their subscription base happy and healthy.
• Lifetime value: The retailer's customers become more valuable over time, due to the data-driven strategies that keep them coming back for more.