

The retailer faced the practical challenge of acting on segments too coarse to guide product and timing decisions, while rich transactional data went unused.




NTT DATA identified customer profiles through business and transactional variables to estimate sales potential and retention.
Reviewed every relevant information source and database to build a reliable base for the segmentation model.
Contrasted variables and reviewed their impact before building the clustering model, keeping the ones with real weight.
Created micro-segments with homogeneous groups and accurate purchase potential calculations for each customer.
Described each cluster in business terms, so sales and marketing teams read the result and act on the findings.
The retailer moved from describing its customers to knowing what to offer each group next. The new segmentation defined 42 micro-segments by purchasing behaviour, calculated purchase potential for 600,000 customers and generated 128 Next Best Product initiatives. Decisions on product and sales timing now rest on customer data rather than intuition.