Major Retailer Grows Active Customer
Base, Revenue, and Profit Through
Consumer Analytics and Machine Learning

Major Retailer Grows Active
Customer Base, Revenue,
and Profit Through Consumer
Analytics and Machine Learning

Faster analytics performance
Dramatically faster response times
Affordable Implementation
Competitive
advantage
Modern and
Scalable
Challenge

This leading retail chain of more than 1000 stores struggled to grow revenue and maximize margins. They tracked more than 3 million loyalty card customers but dealt with increasing dormancy and a large pool of inactive accounts. Lacking effective analysis, the explanations for customer inactivity remained elusive.

On the product side, the retailer sold items from other suppliers in addition to their higher margin, in-house brand. Although they collected terabytes of data from millions of transactions per month, the volume and diversity of the data inhibited the company’s ability to manage and analyze it. The data delivered little to no value. The retailer needed better data management and new, more modern analytics to deliver the insights required to catalyze growth.

Featured services
Data Preparation

Create radical productivity by curating information for people who know the data best, while ensuring security and compliance. and prepare any data, wherever it’s found.

Business Intelligence

Harness the power of your data by leveraging technology to drive strategies to extract actionable intelligence and get an edge over your competitors.

Data System Architecture

Make your business strategy truly agile by getting a flawless data system architecture that adapts to the rapid changes in the data medium and technologies.

New Application Development

Bring your ideas to life – From Conceptualization, design, development, marketing- we’ve got you covered every step of the way.

Data Integration

Connect your heterogeneous data systems to get a unified view using the best integration tools giving performance and cost-effective advantage.

Data Analytics-Operational

Streamline operational efficiency by combining data analysis and business intelligence on real-time data and daily logs.

User Interface Design

Create a superlative user experience for your users using the best user experience strategy and craft interfaces that are a joy to use.

User Self-Service

Avoid lengthy data modeling projects and obtain self-service analytics in the cloud or on-premises in minutes and not days or months.

Solution
Kanerika began with the basics – establishing a solid foundation of good data management practices for high-volume, high-diversity data environments.

With this foundation in place, Kanerika’s data analytics team worked with the retailer to design and deploy innovative consumer analytics and machine learning algorithms that delivered actionable consumer and product insights. Kanerika introduced a new scoring model based on the RFM (recency, frequency, monetary) approach to customer segmentation and developed a new customer classification model based on purchase pattern and personalized consumer information. The classification model pro-actively identifies customers likely to become dormant so the retailer can target engagement efforts.

Kanerika also added association rule mining, a machine learning method, to the customer experience that nurtures customers to create more profitable market baskets, thus maximizing margin growth.

Results
Major Increase in Active Customers

The retailer saw a 133% increase in buying activity from existing loyalty card customers (from 30% to 70% active).

Increase in Total Loyal Customer Base

Simultaneously, the loyalty program grew from 3 million to 8 million total subscriptions, a 2.6x increase!

Higher Profits

Customers create more attractive market baskets that include higher-margin, in-house brand products with the addition of association rule learning algorithms. The retailer can better target campaigns using improved customer insights.

Higher Total Revenue

With more loyal, active customers and better market basket insights, the customer has driven increases in revenue.

Why Kanerika?

While Kanerika’s profound expertise in data analytics and machine learning enabled the delivery of the new system, the retailer also strongly valued Kanerika’s focus on building a trusting business relationship “for life.” The retailer recognized that Kanerika promised a flexible team of experts focused on delivering results and committed to exceeding expectations.

Client Reaction:

“We really appreciate the high level of service and the commitment shown by the team both in addressing our requirements and meeting our timelines.”

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