Problem Summary
A company operating in the e-commerce and retail sector was experiencing low conversion rates in marketing campaigns despite its large customer base. Sending the same messages to all customers and the lack of personalization caused the marketing budget to be used inefficiently.
Since customer behaviors were not analyzed, it was unknown which products appealed to which customer groups. Cross-selling and up-selling opportunities could not be evaluated, and customer loyalty remained low. The company wanted to know its customers better and develop special approaches for each segment.
Data Analysis and Segmentation Process
A comprehensive customer data analysis was carried out in the project. Purchase history, demographic information, behavioral data, and customer interaction data were examined in detail.
- Collection and cleaning of customer transaction data for the last 3 years
- Performing RFM (Recency, Frequency, Monetary) analysis
- Customer lifetime value (CLV) calculations
- Segmentation with K-Means clustering algorithm
- Determining characteristic features for each segment
- Designing segment-specific marketing strategies
6 Segments
Defined Customer Groups
45%
Marketing ROI Increase
35%
Customer Loyalty Rise
Segmentation and Strategy Development
As a result of the analysis, 6 different customer segments were identified and special strategies were developed for each:
VIP Customers
Loyal customers with high spending. Special discounts, early access, personal consultancy, and premium services were offered.
Potential Customers
Customers with medium-level spending and high growth potential. They were moved to the VIP segment with upselling strategies and special campaigns.
Regular Shoppers
Customers who shop frequently but have a low average basket value. The basket value was increased with cross-selling techniques.
Those at Risk of Loss
Customers who have not shopped for a long time. They were won back with win-back campaigns and special offers.
New Customers
Customers who have just made their first purchase. They were converted into loyal customers with welcome campaigns and onboarding processes.
Opportunity Customers
Customers who shop irregularly. Activation was ensured with personalized product recommendations and reminders.
Results and Achievements
- Special campaigns were developed for each customer group
- Special action plans were made for each customer segment
- A strategy was developed for customers at risk of loss
- Pricing and sampling studies were changed according to segmentations
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