Case Study: E-commerce

Learn how our research helped a client improve customer retention and develop a successful marketing strategy.

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    The Problem

    An e-commerce client of ours specializing in school and art supplies found itself in a tough situation: orders from their most profitable market segment had taken a nosedive. Loyal customers had significantly reduced their order sizes, and infrequent customers had stopped making purchases entirely! This trend was a major concern and called for immediate action.

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    The Solution

    We implemented a comprehensive research program to get to the bottom of the customer defection. Our approach involved conducting qualitative research, including in-depth interviews with key contacts from customers in this market segment. Additionally, we crafted a quantitative survey to gather valuable insights from a broader customer base.

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    The Results

    We discovered with quantitative and qualitative research that changing customer behavior was driven by tighter budgets and a preference for discounts and faster shipping options. Customers were flocking to competitors like Amazon, lured by the appeal of free shipping and expedited delivery. Armed with these insights, we proposed an effective solution to revamp the loyalty program for this customer segment.

    The company implemented lower purchase thresholds for discounts and free shipping, successfully incentivizing customers. While they couldn’t match Amazon’s shipping speed, they offered compelling discounts that enticed customers who had previously scaled back their purchases. As a result, the company not only regained the lost loyalty, but also experienced a notable increase in orders.

    By proactively understanding the reasons behind the decline in orders and implementing a targeted solution, the company successfully regained customer trust and witnessed substantial sales growth within the affected market segment.