Case studies

Customer database segmentation

Duration:
Technologies:
2 months
R, Microsoft SQL Server

Problem:

One of the leading retailers in Poland with an extensive network of outlets of various formats needed to create a communication strategy for its customers. One of the stages of the project was the segmentation of the consumer database.


Solution:

Using machine learning methods, 7 segments were identified based on 88 variables describing different aspects of customer behaviour. These segments were characterised and described for marketing purposes.

Effects:

  • The report describing the segments was used to adjust the offer and language to each customer segment
  • Tracking customer migration between segments in time
  • Possibility to assess the increase in effectiveness of marketing activities addressed to a specific segment

Data base:

  • Sales data (over 3.4 billion items)
  • Consumer data (over 5 million customers)
  • Product data
  • Data on the use of discount codes