Maximising marketing efficiency by targeting likely repeat buyers

Jewellery brand

We launched a customer segmentation model that powers targeted marketing campaigns across email, social media and the loyalty programme.

100%

Customer coverage

> 75%

Prediction accuracy

Background

A leading jewellery brand needed to better understand their customers to tailor marketing efforts. Their outdated segmentation was static, without the ability to track segment growth, differentiate by price sensitivity, or identify high-potential customers early in the journey.

Solution

We implemented a customer segmentation strategy using machine learning, to empower the team to target marketing activity. We enhanced their existing RFM segmentation model by replacing the recency axis with a propensity model, enabling the team to predict future purchases and recognise high-value customers early in their journey.

Impact

Since applying this new segmentation solution, the jewellery brand has more accurate reporting insights about their customers, allowing for more precise targeting of promotion activity and increased effectiveness of marketing campaigns.

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Optimal

“This project was a first for our client, delivering a live AI-powered customer segmentation that improved return on marketing spend across multiple channels.”

Ben Bedford, Customer Director

Faculty

efficiency.