Meeting a customer’s individual needs is critical for building a strong base of loyal customers and driving greater revenue opportunities. But the first step is to understand your customers. A Fortune 500 logistics company had very little insight about its small- and medium-business (SMB) customers. The company was looking for a better way to collect, segment, and analyze its many data points to uncover untapped revenue potential and sales opportunities amongst its SMB segment.
We created a customized sales engine for the client with our Revana Analytic Multichannel Platform (RAMP) solution. RAMP uses data analytics and algorithms to analyze patterns in customer behavior and deliver relevant sales offers to increase conversions and ultimately, loyalty. The client assigned us 1.1 million undefined customer accounts, along with their associated revenue, purchase volume, and call history data. Using RAMP and our Integrated Marketing Tool (IMT), we applied propensity models and other segmentation flags to the list to create customer profiles of high-value customers, as well as those who have “high seasonality” (i.e., propensity to ship during specific time of year).
We also were able to identify a customer’s “Next Best Service” to make sales conversations more relevant, as well as increase shipping usage for services that are more tailored to a customer’s specific business needs. For example, if a customer is identified as primarily using an express shipping option, the client can recommend the next best available shipping method based on the customer’s revenue and volume history. In segmenting customers this way, sales representatives have more relevant conversations about their customers’ shipping needs, thereby increasing shipping frequency and use amongst services types that aren’t used very frequently and/or are more tailored to their business needs.
The efficiency and quality of the approach helped the client exceed revenue generation targets month over month for the past 21 months, which generated ROI upwards of 300 percent. The client also saw a year-over-year increase of $40 million in incremental sales revenue for the SMB segment in fiscal year 2014. The next step is to apply additional demographic information to the customer accounts to uncover more insights and continue to drive revenue and sales for the client.