Case Study - Power of Hyper-Personalisation to build Profitable Customer Pool - for Client A!

Overview

 With Data Analytics, personalized marketing campaigns have become a cornerstone for retaining customers and boosting sales. Client A, seeking to enhance customer loyalty and drive incremental revenue, implemented a Hyper- Personalization (micro-segmentation) campaign strategy with Phinomial. This case study delves into the remarkable results achieved through Phinomial’s targeted approach.

 Key Metrics and Results

 1. Monthly Retention Rates : Whopping jump to 43% retention from 31-33%: One of the most significant outcomes of the micro-segment campaign was the substantial increase in monthly retention rates, ie repeat customers share of total revenue. This inexpensive metric of higher level of customer loyalty directly brings down dependence on acquisition of new customers, which is very expensive.

 2. Campaign Conversion on Loyal Segments : Astonishing Campaign Conversion Rate of 7-15%: The personalized messaging strategy to micro segments employed in the campaign led to a phenomenal business response from loyal customer segments. Conversion rate is measured as actual transaction done and such high Conversion can bring super ROI.

 3. Average Transaction Value (ATV) : 20% Increase within 4 Months (YoY): Client A witnessed a notable 20% increase in the overall Average Transaction Value (ATV) within a span of four months. The ATV rose from Rs. 5837 to Rs. 7021 like to like. This improvement highlights how personalized messaging leads to higher spending per transaction.

 4. Incremental Revenue : At Phinomial we work on the metric formula of No. of repeat customers x value x frequency x no of items. This client got and incremental Revenue of Rs. 2 Cr to 3.5 per Month. That was based on analytics and smartly pushing each metric. But campaign spending only on a total loyal base of close to 3 lakhs. The cost of the campaign and the analytics cost were and remain a small fraction of the additional measurable and predictable revenue – that personalized marketing can have on a company’s bottom line.

Strategy and Implementation

The core of the success in two parts. Analytics of overall customer database and identifying PROFITABLE customers from the overall pool. And then using the micro-segmentation approach on the profitable pool. Breaking down the customer base into highly specific responsive mini /micro-segments, Client A was able to then deliver tailored messages that resonated with individual customer preferences and behaviors. This was the sure-shot low cost high return strategy that yielded phenomenal results.

This hyper-personalization was achieved through the following steps:

Data Churn, Deep Analytics of Customer Data - Past Years

Profitable Customer Pool and Micro-Segments Creation

Target Metric and Campaign Strategy Against Each Micro Segment

Personalized Relevant Messaging Based on Specific Strategy 

Constantly Monitor Campaign Effectiveness and Iterations

Conclusion

Client A’s experience demonstrates the powerful impact of Hyper -Personalisation as a going in philosophy to build a loyal profitable customer base! Micro-segment campaign strategies in achieving significant business outcomes against insignificant costs. Also over a period of time, with enough campaigns and learning, the segments give predictable outcomes!