An electronics store brand uses machine learning to cross sell and achieve revenue growth.
The electronics brand has 40+ stores spread all across the country. They were not making use of the CRM data and were at loss about how to maximize the customer base to drive revenue growth. We presented them a customized cross sell solution, accounting for the kind of product bought that would allow them to grow their revenues at cheaper customer acquisition cost and improved loyalty.
Targeted campaigns with better conversion rate
We developed a cross sell scorecard for the customers of three kitchen electronics items – Microwave, Refrigerators and Mixers. A pilot campaign generated following outcomes:
- Model accuracy of ~84% on validation dataset
- Average uplift of 2.3x on conversions across 2 campaigns
- Reduced customer acquisition cost (CAC) and higher lifetime value (LTV)
The solution allowed the retailer to focus on customers who were most likely to purchase and boost loyalty and engagement.
Right offer for each customer
The electronics store chain was spending on acquisition campaigns with poor response rates. The team was reaching out to all customers with a rule based approach, bringing inefficiencies, lower conversions and customers’ frustration with irrelevant offers. They were unable to leverage the huge customer base on their hand and losing precious business to competitors.
They needed a data driven approach to cross sell campaigns - a way to identify the right customers and if they were reaching out to them with the right product offer. On preliminary analysis of their call data, it was clear that they had good, contactable data on their customers. All that was required was to find the right customers to reach out to – and with the right product offer. A cross sell solution was precisely their need!
Optimized contact and offer strategy using cross sell implementation
Cross sell is one of the most widely used solution in customer analytics. And cross sell in very powerful.
With the right customers, right offer and right touchpoints, cross sell can boost conversions up to 4-5%. Cross sell drives multiple business benefits:
a. Boost in revenue with lower customer acquisition cost
b. Higher life time value, improved loyalty and better engagement with customers
c. Proactive retention, and minimizing customers switching to competition
Cross sell implementation enabled our client to move towards a more customer centric approach by optimizing and improving the overall product offering