Customer Segmentation: The key to meeting consumer needs and outpacing competition
A leading U.S. discount retailer sought to enhance its Enterprise Customer strategy by leveraging first-party data for better strategic, tactical, and integrative insights. The retailer faced challenges with inactive market segmentation at the customer level, an inability to adapt segmentation in real-time to changing consumer behavior, and misalignment with future strategy and investment priorities.
The solution: NIQ’s always-on, First-Party Data-Driven Enterprise Customer Segmentation solution, integrated with market-leading NIQ consumer panel and research data.
This next-generation approach enables the retailer to capture the most up-to-date customer behaviors, identify growth opportunities, and drive holistic enterprise-wide strategy that can be executed at any level of the customer across all facets of retail operations: marketing, merchandising, finance, product, and store operations.
NIQ’s Customer Segmentation Methodology
Customer DNA:
Automated, dynamic scoring of each customer based on shopping behaviour
Headroom Modeling:
Prioritization of customer segments based on Share of Wallet Opportunity to drive ROI
Enterprise Segments:
Creation of mutually exclusive high-level segments for investment allocation
With that, NIQ was able to deliver a series of data-driven activities, resulting in 9 independent customer personas:
- Identified most loyal customer segment with 7:1 sales penetration
- Tracked key behaviors like SNAP usage and digital savviness
- Used competitor leakage reports for risk analysis
- Conducted Attitudinal Research for customer motivations
- Measured customer share of wallet by category
- Integrated insights into retailer’s data platform
NIQ Enterprise Segmentation became the foundation of retailer customer strategy, launched across all vendors, with impressive outcomes;
Customer Segmentation: A key strategy for navigating change and driving loyalty
Better Understanding
Gain deep insights into customer behavior and preferences to inform strategic decisions
Increased Targeting
Improve marketing effectiveness through precise customer targeting and personalization
Improved ROI
Drive better loyalty, sales, and return on investment through data-driven strategies
Ready to transform your customer strategy?
Discover how NIQ’s Customer Enterprise Segmentation can help you unlock your next wave of growth.
