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Use-Case fashion retailer

Data visualization for a better understanding of your customers

As a retailer, it is of utmost importance to monitor closely how your shops are performing. Moreover, communication needs to be segmented and in line with a consumer’s specific buying habits and purchase potential if you want it to be cost-effective.

A Fashion Retailer came to Black Tiger Belgium with 2 types of challenges:

Challenge 1

Monitor shop performance in the blink of an eye. 

The retailer wanted the performance of each shops, in order to determine individual focus areas.  This would help them determine whether to focus more on recruitment, loyalty or reactivation of customers.

Challenge 2

Set up a segmented communication approach and optimize ROI.

In order to undertake action on the defined focus areas, the retailer needed to segment its database and make sure to send the right message to the right customers. The objective was a segmented communication approach based on customer purchase behaviour, point of sales, moment…

In order to help this Fashion Retailer obtain each of these objectives, Black Tiger Belgium started by analyzing the retailer’s history and its customers in total and per point of sales. This led to a segmentation of each customer according to the recency of his purchases, the frequency and the amount spent, allowing our client to determine where to take action.

In a second step, Black Tiger Belgium set up a visual intelligence tool showing KPI evolution, and allowing our customer to take action quickly in case some deviating results should pop up. Next to the general performance, the tool also gives insight into the profile of each segment per store, allowing the retailer to adapt the communication.

Indeed, the applications and advantages of the visual intelligence tool are endless. But to state a few: 

1. ROI of tens of thousands of € on net margin for the birthday mailings. 

The retailer recently reintroduced its birthday mailings. Thanks to the segmentation, our customer was able to decide which customers are his high-end customers who should receive a paper mailing and which customers should receive a birthday e-mail.  This led to a very positive ROI of tens of thousands of € per year.

2. Invitations to private sales: drastic improvement of ROI. 

Thanks to the tool, the retailer was able to identify the top clients to send an invitation to its private sales. This way, our customer avoided investing in non-profitable customer segments. Moreover, thanks to Black Tiger Belgium’s high standard data quality, our customer was able to avoid postal returns. Both measures drastically improved the ROI of the campaigns.