Reduce customer churn, reengage buyers, and increase business revenue through data analytics and impactful data strategy
The Results
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Successful Reengagement Strategy Set
5 Key Customer Segments Defined
Efficient Reengagement Parameters Defined:
Discount sweet spots for each segment
Efficient Reengagement timelines: 18 days
The Execution
Our client is a prominent ecommerce brand specializing in the kids wear segment. With a strong presence in India, they have garnered the trust of over 2 million customers and are continually expanding their product offerings.
The client was grappling with a significant issue of customer churn, as 46% of their one-time buyers (C1) did not make a second purchase. This challenge translated into a substantial potential revenue loss estimated at $2.5 million over a six-month period.
ADA successfully tackled the challenge by developing an ensemble recommendation system designed to re-engage C1 customers.
The Approach
We developed a recommendation system designed to re-engage one-time buyers, comprising of the following modules:
Customer Profiling
We profiled customers based on city/payment mode/platform/average basket spend of their first purchase to understand the behavior.
Product Recommendations
We created a Recommended Product Type Combinations List for dormant customers based on analyzing the second purchase pattern of repeat customers.
Time-Based Suggestions
We analyzed and determined the best time for targeting the customer with an offer. Time of repurchase for 60% of customers was determined as 12-18 days.
Discount Recommendations
We analyzed and determined the optimal discount offers to ensure higher re-engagement. Average discount offered across Product Type Combo for most of the segments is 10%, except premium customers (less than 5%) and Low Basket & Cash On Delivery, more than 20%