Challenge
An online retailer struggled with low campaign ROI and high churn due to generic marketing strategies that failed to address diverse customer needs.
Solution
We implemented a clustering algorithm on purchase behavior, demographics, and browsing data, segmenting customers into five actionable personas and integrating these into the marketing automation platform.
Implementation Steps
- Data Integration: Combined CRM, web analytics, and sales data into a unified data warehouse.
- Clustering & Profiling: Used K-means and hierarchical clustering to define five customer segments.
- Campaign Design: Crafted personalized email and ad campaigns for each segment.
- Performance Tracking: Set up dashboards to monitor segment engagement and ROI in real time.
Results
- 42% uplift in email click-through rates for targeted segments.
- 38% improvement in customer retention within six months.
- 15% increase in average order value across personalized promotions.