Client context.

Our client is a leading player in the apparel retail business.
Like most retailers in India, our client was on the lookout for opportunities to leverage the customer data it had collected over the years through its loyalty card programme.
Our client was using only a limited amount of data, which was insufficient to develop a marketing strategy that would discriminate between different customer segments.

Kanvic's approach.

We used advanced analytics to mine our client’s existing customer data to develop a more meaningful segmentation pattern. As a result they could assign each customer to one of 7 new segments.

Our analysis gave the client powerful new insights showing how its customer portfolio was significantly under-leveraged. In particular, how revenue generation was highly dependent on a small set of customers.

Using the insights gained, we defined a new four-pronged marketing strategy, with targeted segment-wise strategies aimed at optimising the customer portfolio.

Client benefits.

Increased sales from existing customers by 10%

As a result of the new analytics driven marketing strategy sales from existing customers grew by 10%.

Improved return on marketing investment by 3%

The new segmentation model and the more targeted marketing promotions improved return on marketing investment from 15 to 18%

Increased customer loyalty

In the 12 months following the implementation of the new marketing strategy, the repeat purchase rate grew from 11% to over 15%.

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