Business need

  • The client is a global coffee company with more than 6 million members, with 80,000 new members joining each week
  • Its annual sales is about $3 billion

Business Objectives / Goals

  • The company wanted RocSearch to conduct an in-depth research on the OPEX reduction strategies on a global scale
  • The client also asked the team to focus on the cost reduction strategies of a UK-based fixed line operator
  • It had concerns regarding the effectiveness of its loyalty programme and whether the rewards were successful in increasing customer engagement

Approach and Methodology

  • The team developed a business understanding of the existing loyalty programme by interacting with the stakeholders
  • We also analysed the behaviour of customers through exploratory analysis
  • We designed a solution, comprising hybrid clustering for customer segmentation
  • We conducted market basket analysis to understand the product association for customers
  • The team created dashboards that offered the client stakeholders actionable insights through better analysis of customer behaviour
  • The programme was rolled out in phases to assess the impact of the change

Business outcomes

  • Tailored campaign offers (different from loyalty rewards) were created for specific customer segments
  • A detailed cross-sell suggestion matrix was developed for each customer segment
  • The findings helped the client generate savings in excess of $1mn on freebies and increased marketing ROI by 22.7%

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