CRM – Customer Segmentation

Summary

Timber Products, Ltd.* is a big company offering a wide range of goods for DIY and gardening segments. During the recent 5 years it has substantially increased its scope of activities. At the same time, the company has introduced a CRM system.

Not long ago, the top management of Timber Products, Ltd. decided to make better use of the huge inbuilt archive of the data stored. The idea was to accurately segmentize customers by their demographical and psychological characteristics for better targeting of advertising and marketing campaigns, as well as for sales performance increase.

The relevant solution was proposed by Sentino. Its APIs helped to detect prominent classification criteria based on the analysis of the data stored in the digital form. The effective customer segmentation allowed to increase sales by 12%.

Timber Products, Ltd. – Company Profile

Timber Products, Ltd. is a major player in the market of goods for DIY and gardening segments in the European Union. It was founded 8 years ago but turned into a large business during the recent 5 years. It started to propose environmentally-friendly flower- and vegetable-beds not only for gardens in rural localities but also for verandas, balconies, terraces and public parks in towns and cities. Currently, the company employes over 200 persons and works on better targeting of its advertising, marketing and sales campaigns based on the accurate customer segmentation.

Background

Timber Products, Ltd. deployed its own CRM system that consistently stored various communications with customers (calls, emails, messages and chats from corporate website and social media) in the digital form. The data was carefully accumulated by not very much used. Recently, the top management of the company decided to put this information in use and make the most of it. It requested proposals from several data analytics companies. The Sentino’s proposal won the contest.

Solution

Our solution included data processing with the use of Sentino APIs. It helped to determine the following classification criteria:

  • Demographical (age, geography, urbanization, income, relationship status/family, job type);
  • Psychological (personality profile for each of the major customer groups).

The initial customer segmentation was performed, based on demographic characteristics. It allowed to list several major customer segments.

Further data scoring with our AI-powered tools helped to generate a typical personality profile of a customer from each previously detected segment. The profiling was performed based on several personality scales (BIG 5, RIASEC, DISC). The profile included such valuable characteristics as customer needs and values, customer experience, behavioural trends and patterns, sentiments, customer preferences, typical decision-making mechanisms, etc. Brief recommendations (the so-called do’s and don’ts) for each customer segment supplemented the report delivered by Sentino. Moreover, the customer segments with the highest current and potential value were pointed out, which opened up a good scope of work for corporate marketing and sales teams.

Benefits

  • Effective use of vast data from the CRM system
  • Careful consideration of specific personality traits of a “typical customer” form each segment
  • Needs-based and value-based customer segmentation
  • The fullest consideration of customer behaviour, preferences, expectations
  • Personification of advertising, marketing, and sales campaigns
  • Sales volume increase by 12%

* Timber Products, Ltd. is an imagined company described just for reference purposes. Any resemblance to real persons is purely coincidental.

Scroll to top