Bespoke Insights through Customer Segmentation Model
Advanced Analytics Case Study:
Our client provides electricity to almost all residential properties and the majority of businesses in Tasmania. Increasing competition and a desire to align data with their overall digital strategy has led the organisation to seek out advanced analytics.
This case study explores how we developed a customer segmentation model to open new avenues of communication, develop new products, and ultimately address customer churn.
Upon our engagement a number of quick wins were identified, amongst them a customer segmentation model to cluster customers based on similar behaviour and attributes.
- The built solution interfaces with an on-premises Vertica database, retrieving and cleansing the data, as well as external data assets to enrich analysis.
- The script clusters residential customers with similar attributes and needs into a number of segments based on their statistical similarities.
- The clusters are deployed to the host database to be leveraged by the organisation.
Now that the organisation can identify customer segments (or clusters) with different patterns of consumption, payment, and affluence, internal stakeholders can make better decisions about their residential customers using an evidence-based approach.
Empowered by new insights, the organisation is developing new initiatives to optimise their marketing, communications and new product development.