Leveraging Segmentation to Enhance Sales and Customer Retention
Client Snapshot:
A global manufacturer of premium kitchen appliances, widely recognized for its water-dispensing refrigerator models, sought to improve customer retention through smarter engagement. While the brand generated $15 billion annually in global sales, its U.S. division was struggling to maintain consistent filter repurchase behavior among customers.
Challenge:
The replacement filter business lacked strategy. Reminder emails were infrequent and generic, marketing efforts were inconsistent, and many customers simply forgot to reorder. The result: low engagement, missed revenue, and untapped customer lifetime value.
Our Approach:
We reframed filter repurchase as a recurring relationship opportunity. Through exploratory analysis and customer segmentation, we examined purchase behavior at the model level—tracking refill timing, frequency, and product mix, and integrating retailer and serial number data to identify purchase location patterns.
This analysis informed a new, behavior-driven communication strategy. We created predictive models to trigger personalized outreach at key moments in the customer lifecycle and launched three core initiatives:
An automatic home delivery program targeting customers with regular refill patterns
A retail-specific onboarding and reminder series with promotional offers
Personalized email reminders sent 30 days before predicted filter expiration, customized by product model and offering an auto-renewal option
Results:
Within 10 months, monthly filter sales nearly tripled—driving a 236% year-over-year lift.
The auto-renewal program achieved a 95% customer retention rate and significantly reduced the need for traditional direct mail outreach.
The campaign earned recognition in an international marketing competition and was spotlighted internally for its measurable business impact.
Future Directions:
The client is expanding retailer data partnerships and exploring how to apply the auto-renewal model to other consumable product categories, extending the strategy across their portfolio.
The Takeaway:
This case illustrates how targeted segmentation and lifecycle modeling can turn an overlooked replenishment opportunity into a high-value customer experience. By designing engagement around real behavior and preferences, the brand drove retention, sales, and loyalty—all while reducing cost and complexity.