CUSTOMER SEGMENTATION & EXPANSION

Gaining new customers can be difficult?

CHALLENGE
Jimmy Brings offer an online alcohol delivery solution across Sydney’s CBD, Eastern Suburbs, Inner West and Lower North Shore.
 
When looking to expand beyond their existing delivery footprint the challenge they faced was in determining which regions offered the greatest potential.

SOLUTION
To help identify the right expansion territories Jimmy Brings engaged Data Hatch.

In evaluating the expansion options, we adopted a data-led approach, based on a clear understanding of:

  1. Product demand – the products customers are most likely to order
  2. Fulfilment capacity – the number of hourly deliveries able to be made

Utilising Jimmy Bring’s first party data we created actionable audience segments.
 
Data Hatch’s solution to the client’s challenge was to focus on their known first party customer data. Using customer data as the foundation we created look-a-like audiences across Australia. Our segmentation identified where to engage with both existing & potential customers, whilst the look-a-like modelling provided a view on the size and potential opportunities for expanding the business footprint nationally.

HOW WE DID IT
Using K-means clustering we identified different customer needs based on their past behaviours.

Our solution was broken out into two parts; firstly, cleaning and reviewing existing customer behaviour to build segments, and secondly building segment expansions across Australia to meet the challenges outlined above.
 
Jimmy Brings has been delivering alcohol in Sydney’s CBD, Eastern Suburbs and Inner West since 2012 meaning that without knowing it, they already had a significant view on their customer profiles. Data Hatch used first party data such as delivery postcodes, times and products and washed this against known demographic variables from Census data, such as family blending, ages and income levels, to create the base data for the project.
 

This data was segmented using K-means clustering to produce customer profile groups such as ‘Wine Lovers’, ‘Social Drinkers’ and ‘Adult Families’ whose purchasing habits and needs all differ. To validate the segments the clustering algorithm re-queried the data over 2.5 million times. This allowed us to generate the most accurate group of customers.
 
The second part of the project involved expanding out the profiles of each segment to include a more detailed set of Census variables. We then compared each segment with every suburb in Australia to find their closest match. These look-a-like postcodes provided Jimmy Brings with a view on the most desirable areas for expansion based on their likely purchase behaviours.
 
To answer the question of maximising delivery vehicle efficiency, Data Hatch combined the potential audience figures (for the target audience demographics of 18 to 54-year olds) and the territory size. This produced an Australia-wide view of population density.
By combining these with potential audience catchment sizes and isolating them at 10km radius intervals we were able to determine:
 

  • Optimal regions to review for expansion
  • Specific zones within region for delivery fleet, ensuring maximum delivery efficiency
  • Optimal product mix based on likely customer preference
  • Optimal marketing messaging to lead with in expansion areas

RESULTS
On the basis of Data Hatch findings Jimmy Brings is currently exploring expansion opportunities in 2 additional states across Australia. Data Hatch made recommendations for two core segments to focus on which were identified as key growth-driving segments for Jimmy Brings.

2key segments

Projects

Let's use data to make confident decisions