CAE – Retail – Customer Segmentation

The purpose of market segmentation is to identify different groups within your target audience so that you can deliver specific, fact-based, and valuable messaging to your customers, leading to an improved customer proposition, optimising your branch or retail networks and improve the in-store customer experience.

CAE can help you gather relevant customer data, interrogate and act on the data in real-time and in context. Crucially, this can be automated so that data does not sit dormant or underutilised, and eliminates costly delays.

Bringing together multiple resources builds a pool of trusted, complete, and current business intelligence, and enables act-on-fact decision making by multiple lines of business including marketing and retail operations.

Behavioural segmentation of data allows us to better understand:

  • Spending habits, purchasing and browsing habits
  • Interactions with the brand
  • Loyalty to brand
  • Previous product ratings

At CAE, we can utilise behavioural segmentation to deliver highly relevant and targeted campaigns based on a number of behavioural patterns:

  • Number of visits to your store
  • How far do they travel to get to your store
  • Where in the store they spent most of their time
  • Time spent in store
  • Spend in store v on-line
  • Exact movements around the store
  • Did they arrive in store in response to a notification/campaign of some kind
  • Do they have a history of buying through responses to campaigns
  • Campaign redemptions
  • What do they respond well to in 1-2-1 notifications – likes/dislikes
  • Purchase history
  • Inactivity, and more

For example, we can distinguish between a first-time visitor and someone who’s already been in your store multiple times but haven’t purchased. Based on this behavioural data, we can tailor our messaging accordingly:

  • First time visitor: Hey, learn about our latest collection!
  • Returning visitor: Join our loyalty program and start saving!

One of the best examples of this type of segmentation is showing new visitors a £15 incentive in exchange for joining the community. Returning visitors who had already subscribed but have not redeemed their coupon yet were reminded on their first order incentive. Whereas returning customers saw a campaign about premium services.

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B2C Practice
b2cpractice@caeuk.com