Client Success Stories - Segmentation

Segmentation for Major Online Subscription Service

person laptop 150Client Issue/Needs

  • Client was interested in understanding its customer base throughout the subscription lifecycle in order to improve communications and messaging as well as optimize pricing and promotions.

Our Solution: Latent Class Segmentation

  • We conducted a latent class analysis on each of the three customer lifecycle stages, yielding 20 segments in total. We then analyzed each segment on its opportunity and predicted value, developing detailed personas and strategies for maximizing potential of key target segments.
  • In addition, we developed algorithms for scoring the customer database.

Activation

  • Client selected 2-3 key segments from each lifestage to focus their efforts. Promotions, communications, imagery and messaging were developed to appeal to the needs of each segment.
  • In addition, segmentation was used to develop communication strategies for customer care. This allowed representatives to address each segment's unique concerns and present targeted offers to each.

Solutions

Read more about our solution for Consumer & Market Segmentation

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