Problem

A leading retailer had noticed a historical decline in sales volume and purchase frequency among core customers. They wanted to further quantify the loyalty of these customers and understand what steps could be taken to change recent behaviors.

Approach

A quantitative tracking survey was initiated among core and competitive customers, as well as brand considerers to ascertain customer loyalty. This input was used to define a loyalty metric to be tracked over time. We then developed a predictive algorithm that accurately determined a customer’s loyalty score based on a handful of behavioral and attitudinal components related to their category and client’s brand usage, as well as their level of emotional involvement.

Learning

By applying this knowledge, in concert with our client’s transactional data for their preferred customers, we were able to give the client advice and consultation on new relationship strategies to enhance and rebuild customer loyalty.