Download Targeted Campaign for Loyal Customers

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Targeted Campaign for
Loyal Customers
Retailers have increased their marketing expenditure by more than 15% over the past decade. However, this has not resulted in a
proportionate increase in new customer acquisition or sales. One of the key reasons is that campaigns are not targeted to the right set
of customers in terms of buying behavior, leading to lower response rates.
With customization as the key differentiator, mass marketing is losing its relevance among today’s rapidly growing and digitally savvy
customers. Targeted marketing provides incentives to people, giving them several reasons to choose your company over your
competitors. These companies have clearly invested time and effort in understanding specific needs and qualities of consumers and
what they consider value for money.
Machine Learning (ML) algorithm based ‘Targeted Campaign for Loyal Customers’ is a focused
About the
solution
and personalized communication through machine learning based direct marketing strategy.
The solution helps identify customers to be targeted in a campaign to maximize revenue and
optimize margin.
Identifying Target Market
The solution offers a statistical scorecard that can be used to predict the behavior of a customer
(prospect base) with respect to a specific action (promotion, purchase probability, etc.) This helps
to identify which customers should be targeted to achieve maximum response rate and
understand the drivers that affect a response, how they influence and by how much.
Machine Learning based Algorithm

Utilize supervised machine learning algorithm called Binomial Logistic Regression to predict
expected revenue and profit (separately for test and control).
 Leverage clustering technique based on machine learning to segment and profile customers.
Customer Segmentation is done using RFM (Recency, Frequency, Monetary) Analysis.
Margin Optimization and Churn Management
While traditional campaign management focuses primarily on the loyal customers of a brand or
product, there are some challenges with this popular practice. Firstly, by offering a promotion to a
loyal customer, you are increasing the sales volumes and revenue but your bottom line is impacted.
Secondly, you are ignoring a segment of those customers who demonstrate a drastic change in the
purchase pattern once an offer is extended to them. The solution also lets you concentrate your
retention activity on those set of customers who are likely to switch to a competitor by focusing your
campaign on these set of customers and thereby preventing the churn.
Targeted Campaign for Loyal Customers is an analytics app within the Data Discovery Platform
Data Discovery
Platform (DDP)
(DDP). The DDP is an integrated platform capturing and managing data to generate pertinent
insights through advanced analytics and offers price, performance and time benefits. It
accelerates ‘time-to-insight’ for an enterprise using pre-built industry apps that enable faster
decision making, aided by advanced visualization.
Key benefits
Streamlines routes to market, identifies new opportunities and minimize resources devoted to
apparently potential but unpromising targets and activities.
Improves the response rates and maximize the return on marketing investment.
Identifies customers to be targeted in a campaign, optimize their mix to maximize revenue
and margin
Helps identify those customers who are most likely to churn and focus retention activity on
those most likely to churn.
Improves response rate by 5-8% through targeted campaign for loyal customers.
About Wipro
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading information technology, consulting and business process services
company that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep
industry experience and a 360 degree view of “Business through Technology.” By combining digital strategy, customer centric design,
advanced analytics and product engineering approach, Wipro helps its clients create successful and adaptive businesses. A company
recognized globally for its comprehensive portfolio of services, strong commitment to sustainability and good corporate citizenship,
Wipro has a dedicated workforce of over 170,000, serving clients across 6 continents. For more information, please visit wipro.com or
write to us at [email protected]
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