Case Study

Customer segmentation

The Business Challenge

The client was struggling to gain a granular understanding of their customers’ wants and needs to increase conversion rates and sales. The client wanted to monetize the existing in-house data, but thought it was unstructured and incomplete.

The Solution

We used machine learning modeling to segment customers in clusters, based on the purchasing/usage patterns, demographics, and psychographics. We linked the result with customer satisfaction scores to micro-segment the customer pool.

Customer segmentation 1

Deliverables

Cluster analysis putting the customer into 7 clear segments with specific characteristics

A predictive model to segment new customers based on the available clusters

Compelling visual representation of segments’ satisfaction metrics

Business impact

We improved the client’s NPS score by 3 points and boosted sales, through the delivered cluster analysis. Data-driven segmentation also enriched the client’s classical market research.

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