Helping an apparel retailer define a winning marketing strategy with advanced analytics

In this client case Kanvic helped a leading apparel retailer define a winning marketing strategy by applying advanced analytics.

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

Developed a more relevant segmentation pattern

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.

Gained strategically important insights into customer behaviour

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.

Designed a targeted marketing strategy

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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