Case study · Personal care

Customer Segmentation and Profitability

Voice-of-the-customer research and customer-level profitability, turned into seven segments and a plan to win back share.

Client

A major personal care manufacturer

Industry

Personal care

Result

$50–70MM profit improvement

Capability

Analytic & Consulting Services

The situation

What the client was facing.

The client was losing share with certain retailers. It needed to become more customer-focused, understand those customers’ core requirements, and build the capabilities to win share back.

  • Share losses at key retailers

  • No view of profit by customer

  • Unclear what retailers valued most

Our approach

How we got there.

Methods used

Voice of the customerCustomer profitabilitySegmentation
  1. 01

    Ran a voice-of-the-customer study comparing the client with other manufacturers

  2. 02

    Completed a customer-level profitability analysis

  3. 03

    Grouped customers into three segments by growth opportunity and cost-to-serve

  4. 04

    Identified gaps to best practice and capabilities to build

  5. 05

    Built an action plan for each customer group

Value created

$50–70MM

profit improvement

  • Gaps to best practice found in category leadership, innovative marketing and trade promotion

  • Seven sub-segments within three segments, each with a “right to win” and “right to play” plan

  • A $50–70MM profit opportunity by aligning strategy to each segment

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