Customer segmentation client solution
Our client, a national hunting, fishing and camping retailer, needed assistance in identifying and using insights about its customers to transform its marketing strategy and make a measurable impact to its bottom line.
Client challenge
Increasing competitive pressures and inconsistent consumer behavior made store growth difficult. The shift to online purchases further complicated profit margin and same-store year-over-year revenue. Marketing and management wanted to understand key factors influencing customer behavior and how to improve loyalty and retention.
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Our solution
Turnberry conducted an aggregated past analysis, including product mix and vintage, demographics, psychographics, and marketing history. We dove in to understand the company’s consumers and sales-influencing factors by conducting a descriptive analysis using recency, frequency, and monetary value; understanding consumer variables using sophisticated modeling techniques; and creating cluster models, decision trees, logistic regression, and more.
Results
Six key customer segments were identified, and we found that 5% of the customers drove 32% of the company’s revenue. Our client also saw a strong increase in comparable store growth, revenue stability, and overall improved customer retention.
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