February 21, 2025 |
Consumer Research
, E-commerce & online retail
, Growth consulting
From clusters to conversions
Driving engagement and retention with a customer segmentation model
Lost in the crowd
A North American retailer knew its marketing wasn’t hitting the mark. Marketing campaigns felt generic, engagement was inconsistent, and high-value shoppers weren’t getting the attention they deserved. Without a customer segmentation model, there was no clear way to understand who their shoppers really were—let alone how to keep them coming back.
Smarter segmentation, stronger connections
Netscribes stepped in to change that. Using K-means clustering, we sorted customers into distinct groups—high-value spenders, occasional buyers, bargain seekers, and more. Then, RFM analysis took it a step further, identifying who was shopping frequently, who had made a big purchase recently, and who was at risk of never returning.
The result? A Single View of Customer (SVOC) that pulled everything together, giving the retailer a 360-degree view of its audience in real time. No more fragmented insights. No more disconnected strategies. Just clear, actionable data.
Right message, right moment
With a rock-solid customer segmentation model in place, marketing efforts became smarter and more personal. The company designed exclusive offers just for high-value customers. The team re-engaged at-risk shoppers before they disappeared for good. They fine-tuned loyalty campaigns to reward the most engaged buyers. With Value x Frequency segmentation, the brand knew exactly where to focus its efforts for the biggest impact.
As segmentation took effect, the shift was undeniable. Repeat purchases surged by 25% as personalized targeting kept high-frequency shoppers coming back. Customer lifetime value soared, with tailored loyalty campaigns ensuring that high-value shoppers remained invested in the brand.
What started as a need for better insights became the foundation for a more engaged, loyal customer base.
With a data-driven customer segmentation model, the retailer refined its marketing, strengthened customer relationships, and created experiences that truly resonated. Every interaction felt more relevant, engagement soared, and loyalty grew. By understanding their audience on a deeper level, they turned insights into real connections and long-term growth.
Want to learn more about the measurable impact of customer segmentation on engagement and retention? Download the full case study to find out.
Netscribes is a global leader in data, insights, and digital solutions, driving growth for the world’s largest organizations. As your growth catalyst, we empower sales, marketing, product development, and innovation, acting as a partner who understands your ecosystem and guides you through the implementation journey.