Customer Story
Luxury Retailer Elevates Loyalty with AI-Powered Segmentation
The challenge
Fragmented customer records with different PII
Limitations to creating segmentation
Inhibited predictive modeling
Unable to assemble customers' journeys
The solution
Align across business units around democratizing data
Unify customer, device, and household data to drive personalization across channel
Create customer profiles that empower non-technical teams in using CLV and propensity models
The results
The full story
Luxury retailers understand a luxury experience is just as important as the premium products they sell. Despite years devoted to first-party data collection, one globally renowned luxury brand faced significant challenges in unlocking their data to build personalized campaigns. Fragmented customer records meant they could not accurately assemble their customers' journeys across devices or after milestone life events, like moving. The discordance led to a misunderstanding of the value of customer segments. Acutely aware of the disconnects in their customers' purchasing patterns as they pertain to preventing churn, they turned to Amperity.
The challenge
Unforseen limitations with self-built tool
Addressing the problem, Global Director for CRM and Loyalty said: “We've always said we want a customer-centric view of the business. We have goals to drive more personalization and better understand our customers, but the data has been a limitation. For years, we did a lot of work internally growing our first-party database. We had multiple records for each customer with different PII and couldn't resolve and clean the way we wanted. This process brought different challenges in making sure that data was all connected, clean, and ready to be used.”
Leadership recognized the need for accurate and reliable customer profiles that could be scaled across the business to create smarter segmentation. With so much fragmented first-party data, their reporting could only look back at buying behavior of a single customer profile and then offer the same item again, instead of identifying one person with different profiles and attributes. This also stymied any predictive modeling because they couldn’t map out the full journey for an individual.
The Solution
IT & Marketing jointly solve customer data needs
Leadership identified the first step in improving the customer experience as aligning the business on its core use cases for growth and customer retention. This clarity helped them focus on their data needs rather than starting with an RFP for another app. The Global Director of CRM and Loyalty reflected, “Bringing the key stakeholders in IT and digital and consumer marketing to the table highlighted the need to work off a common understanding of the customer. We understood the problems and how to solve them together."
By unifying customer, device, and household data, they were able to drive greater results across their 50 markets. Building Unified Customer Profiles required ingesting millions of rows of data across 20 separate data sources, producing profiles with 200+ attributes. Ultimately, they went with Amperity based on the platform’s capabilities to unify customer profiles in a way that empowers non-technical teams to use lifetime value and propensity models.
We've focused on identifying customers at a customer level, device level, and across all channels. This centralized view of data has been key to scaling our identity solutions to modernize our customer segmentation.
The Results
Finding new one-time buyers and converting to repeat customers
Amperity's predictive CLV model for segmentation outperformed historical methods by 439%, identifying 16,000+ new purchasers previously overlooked. Using personalized campaigns based on buying tendencies of high-value customers, this luxury brand made repeat buyers out of one-time buyers, and reduced churn with discount offers at the 30, 60 then 90 day since the last purchase.
"Amperity allows us to become more customer-centric, and the metrics we use to define success reflect that. By leveraging the predictive segmentation, we enhance our strategies and our ability to make better decisions. Achieving data-driven personalization across channels and democratizing data across various business units were big wins in our journey with Amperity,“ mentions the Global Director. The ability to centralize and query data efficiently across marketing and IT teams also led to significant improvements in operational efficiency. IT saves hundreds of hours each month that were previously used to query data, merge tables and custom attributes, all for a single marketing campaign. "We can never rest on our laurels. The timing internally is right, and all the stakeholders are super excited." He went on to say, "We launched Amperity with a few initial use cases, and that's only the tip of the iceberg. We have a plan to scale this across all marketing channels, sales channels, and across all customer touch points in the life cycle."
Amperity's comprehensive customer data platform enabled the luxury retailer to overcome their data challenges, achieve a unified view of their customers, and drive customer-centric strategies that deliver tangible business results and a more personalized customer experience expected of a luxury brand. By embracing innovation and collaboration, they transformed their data management approach, building solid bridges among IT and marketing to position themselves well for future growth and success.
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