Increase conversion rates and reduce marketing spending with RFM analysis for an ecommerce brand in the beauty and personal care category
The Results
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The Execution
Our client, a premier online marketplace specializing in Beauty & Personal Care (BPC), boasts a robust customer base of 35 million. Their objective is to enhance the shopping experience and increase the conversion rate through precision-targeted advertising strategies.
The client aimed to optimize their marketing efficiency by reducing expenditure while simultaneously boosting conversion rates in the highly competitive BPC sector. They recognized the potential of advanced data segmentation and Recency, Frequency, Monetary (RFM) analysis as pivotal tools for reaching and engaging the most receptive customers.
The Approach
ADA’s leveraged segmentation techniques combined with RFM to effectively target buyers.
Discovery
Critical evaluation of existing customer segments
Segmentation Algorithm
Segmentation was redefined based on recency, frequency, and monetary
Multiple clustering algorithms employed to create 4 genuine clusters
Cluster-based Offer
Separate & personalized offers were designed for buyer segments based on segment characteristics.