Who are your customers and what do they want?
Customer segmentation supports highly personalised and relevant marketing strategies.
The digital media revolution has completely changed the way retailers and manufacturers seek to engage their customers. Multichannel and direct marketing have become central to the overall shopping experience expected by today’s consumers. Messages and offers are delivered via mobile devices and critically, they must be highly relevant to the target group. The key to this new approach is to have comprehensive knowledge of who your customers are and exactly what they want!
Now serving seven million PAYBACK-customers in 105 department stores in Germany, GALERIA Kaufhof has a 135 year heritage in anticipating and shaping retail trends. To lay the foundations for customer centric marketing strategies, the company sought to more clearly understand its shoppers, their behaviour and their needs. With help from emnos, the first step was to focus on extensive segmentation – particularly important for a business with a very diverse product range and a customer base with equally diverse shopping habits.
Challenging shopping behaviour
From a marketing and segmentation perspective, GALERIA Kaufhof shoppers display very challenging behaviour which can differ hugely from one category or department to another. For example, some attach great importance to quality and brands when purchasing personal clothing but opt for budget price cooking utensils – and some are the complete opposite.
emnos took all of this behaviour into consideration in the segmentation process which involved analysing and aggregating two years of transactions, including PAYBACK loyalty card data and additional store, customer, product and hierarchy information. To understand more about product choice, a ‘Needs’ segmentation was created for up to four GALERIA Kaufhof product categories (women, men, children and home).
A second segmentation focusing on the shopping ‘Mission’ was developed to reveal more about reasons to purchase – this helps optimise the full cross selling potential on the shelf, on the path to the desired product category and at the point of purchase.
Market strategies for all media
GALERIA Kaufhof uses the segmentations to keep one step ahead in its marketing – initially using them as the basis for its 2013 marketing plan. The segmentations are now taken into consideration for both on and offline direct marketing activities and also provide guidance on customer target groups and category management decisions. The company relies on the web-based software solution, emnos Segmenter, to keep customer segmentations up-to-date and track behavioural changes and movement between the segments.
emnos is joining forces with GALERIA Kaufhof at Deutscher Handelskongress 2014 in Berlin (19-20th November) to discuss ‘Customer segmentation as a model of success – where are we going?’ Marc Neurath, Head of CRM, GALERIA Kaufhof GmbH and Inga Wolf, Senior Manager Analytics, emnos GmbH will be speaking at 12.00 – 12.30 on Tuesday 20th November in the ‘Consumer Insights’ forum.
As part of this event, emnos will also host a stand at the Retail World exhibition. Please join us in Berlin at the forum or on Stand F4; or contact us at any time to find out how emnos can help you develop your customer centric journey.