CHURN PROPENSITY
Retailer Increased Customer Retention By 13%, Resulting In An Additional $657,000 In Weekly Sales! Just Imagine What We Can Do For You!
A leading warehouse retailer closed 4 underperforming locations, due to sales and customers lost to competitors and online retailers. They wanted to slow the rate of attrition, and turned to Dextro Analytics.
BENEFITS
KNOWLEDGE
Identified trigger points (who, what, why, and how) associated with switching brands, and attrition due to online vs. brick and mortar.
PRESCRIPTION
Created automated system to flag at-risk customers and provided prescriptive course of actions on how to encourage retention.
AGILITY
Connected internal data science team with Dextro's decision engineers to expedite ROI on analytics and improve model performances.
BOTTOM-LINE
Revamped marketing strategy to generate $657,000 in new sales each week.
THE CHALLENGE
The big-box retailer was struggling between dwindling in-store traffic, due to both local competitors-and the growing number of competitively priced online retailers-many of whom had a far more diverse and expansive inventory. The retailer had an e-commerce alternative, but their digital marketing (emails and online ads) was not effectively driving the desired in-store or online traffic and sales: Pain points:
• Decreased brand loyalty
• High volume of email subscriber attrition
• Low conversion rate and high cost per acquisition/retention with digital marketing
• Unable to accurately identify consumer-switching signals from their multiple data points – website history, loyalty card data, market research, and offline and online transactional data.
Realizing the urgency to retain current customers, and drive new interest, Dextro Analytics quickly put together a team of seasoned decision engineers who specialized in retail. Through our adaptive decision making and solution framing, retailer discovered that leveraging Dextro Analytics allowed them to develop a meaningful and genuine partnership.
Our Decision and data engineers uncovered:
• The key factors of the customer journey– iterative loop between offline and online.
• Integrated new and existing data sources to uncover psychographic drivers. Identified why they buy from our retailer, and what trends send them elsewhere.
• Pinpoint what makes digital efforts effective, beyond price and product selection. Which marketing methods encourage retention, and which deliver new customer channels.
• Applied advanced and integrated algorithms to significantly increase model accuracy and performance-particularly why customers unsubscribe and the churn rate of “on-the-fence” customers.
• Identified how, when, and what to communicate to customers, and how to save at-risk customers.
RESULTS
1. The results spoke for themselves - shortly after implementing Dextro's model and recommendations, consumer-switch rate, and email subscription attrition significantly declined.
2. Targeted the hidden and casual drivers of consumer switching that were previously off the radar.
3. Our advanced foresight and consumer-switching analytics led retailer to abandon 8 marketing campaigns that they now understood would further drive their decline.
4. Personalization became the cornerstone in revamping promotional campaigns strategies, particularly in clothing and electronics categories.
5. Retailer identified an additional 13% of at-risk customers, and switched gears. By offering the right promotion at the right time, they generated an additional $657,000 weekly sales-that may have otherwise been lost.
Retailer described the boost in customer retention as “astounding” and the innovative new concepts as a “no brainer.”
“Dextro Analytics is fast and impactful. It's one thing to run machine learning models, but the value Dextro Analytics provides allowed us to truly differentiate. We now have an innovative and effective new way reach our customers, and the peace of mind that any problems will be addressed without delay.”
- VP, Analytics
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