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Increase your sales with daily dynamic customer segmentation

Industry
Retail
Department
Marketing

A retail company faced the limitations of static segmentation, periodically recalculated, which did not account for rapid changes in customer behaviour. This reduced the effectiveness of marketing campaigns and increased costs associated with manually adjusting segments. BEEM proposed automating and streamlining this process, enabling the company to update its marketing strategies daily based on the latest information. BEEM worked closely with the company to demonstrate how this approach could improve segmentation accuracy while reducing costs and simplifying campaign management.

Key Obstacles Identified

  • Cost Associated with Static Segmentation Complexity: Fixed-interval updates (e.g., monthly or post-campaign) often required a marketing firm, incurring costs and delays that limited the adaptability and effectiveness of campaigns in responding to changing customer behaviours.
  • Limited Marketing Responsiveness: Manual segment updates slowed the marketing team's ability to respond quickly to changes in customer behaviour or market trends, requiring time and human resources.
  • Frustration Due to Inconsistencies: Segments recalculated at specific intervals risked not reflecting current data, occasionally leading to errors in campaigns. For example, customers received promotions for offers they were no longer eligible for, causing frustration and a loss of brand credibility.
Data Sources
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Context

The retailer faced the limitations of static segmentation, recalculated periodically, which did not account for rapid changes in customer behaviour. This reduced the effectiveness of marketing campaigns and increased costs associated with manually adjusting segments.

BEEM proposed automating and streamlining this process, allowing the company to update its marketing strategies daily based on the latest information. BEEM collaborated closely with the company to demonstrate how this approach could enhance segmentation accuracy while reducing costs and simplifying campaign management.

Solution

Through the integration of BEEM's dynamic data platform, the segmentation process was completely transformed. Replacing fixed-interval recalculations, BEEM introduced dynamic time-window functions that continuously analyze customer behaviour over rolling periods and update automatically. For example, instead of a static view recalculated at the end of each month, the system uses a rolling 30-day window that adjusts daily, ensuring that customer segments always reflect the most current data.

Previously, staff needed to manually review and adjust segments, but BEEM’s automated system took over, significantly reducing time and resource demands.

The key to this transformation was the establishment of a sophisticated data pipeline capable of extracting and integrating data from various sources, such as POS systems, appointment platforms, and CRM databases. This information is unified into a continuously updated model, with built-in business rules to ensure accurate and effective segmentation.

Additionally, BEEM's platform allows new data sources to be added, giving the retailer the flexibility to strengthen their segmentation algorithm. This adaptability enables the design of even more targeted marketing campaigns with ultra-personalized messaging based on current behaviour and specific customer preferences, increasing the relevance and impact of marketing actions.

Results

Thanks to the automation and dynamic updating implemented by BEEM, the retailer significantly improved its operational efficiency. By reducing data preparation time and the costs associated with segmentation updates, BEEM allows the team to focus on high-value strategic analysis. Marketing campaigns are thus more targeted, more responsive, and always based on the latest customer data.

The improvement in segmentation quality and consistency strengthened confidence in the information obtained, providing a solid basis for faster and more accurate strategic decisions. This increased agility allows the company to better anticipate market challenges and adjust its operations in real time to meet the changing needs of its customers.

Establishing dynamic customer segmentation groups can be complex, especially when managing large and constantly evolving data sets. However, BEEM's cloud data platform and expert team handle the complexity and resources needed for recalculating segmentation with each update, ensuring that all customers are always correctly categorized based on the latest information.

Collaborate with BEEM in your data journey.
Ready to start your own project?
Discover your data today!

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