About the client
One of the UK's leading supermarkets serving over 20m customers every week in over 500 stores nationwide who also offer a range of additional services including owning a value based virtual mobile network, credits cards and financial services. When they wanted a detailed segmentation of their customers and assistance in developing targeted propositions for their most important customer segments they engaged Graystone Strategy.
The Business Challenge
As part of an overall strategy review the client needed to understand more about their customers than the simple transactional data that they had in their retail systems. As their low cost credentials were being challenged by discounters they had to improve their proposition and customer promise moving away from simply lowest price to a more customer targeted value offer.
As their MVNO customers offered richer sources of data the telecoms business engaged Graystone Strategy to build a customer segmentation that would allow them to understand who shopped in their stores, who used their mobile offering and what was important to each of these customer segments.
Graystone took our customer segmentation and licensed it to the supermarket. We then worked closely with the stakeholders to define the important information that they needed to drive customer insight and change within their business.
Through extensive research and drilling into available customer data we were able to build a bespoke segmentation for the telecoms business that could be easily used throughout the supermarket categories.
Each segment had clearly defined attributes that could be used to target those customers, we were able to build metrics around customer spend, shopping behaviour, preferred channel and the best media to use to target those customers.
Using this information we also ran a propositions workshop with internal stakeholders to define some of the most appealing propositions for each segment.
Finally we delivered all the findings and a segmentation "book" to each stakeholder to allow them to take this new segmented thinking to their wider business.
The client has already started to brief their media agencies and marketing planning teams on this new segmented approach and it has also proven valuable when discussing access to certain customers with strategic suppliers.