Predicting customer potential to optimize personalized marketing


A Danish market leader within beauty and cosmetics retail has strategic focus on developing a highly personalized way of marketing and communication in their customer club. To be able to target personalized communication towards club members with high potential, our client needed to gain insight into their share of each customer’s total spend within specific product categories.


Applying our share-of-wallet segmentation, Epinion integrated 3rd party data from a sophisticated member survey with available data from the loyalty club and developed a set of prediction models estimating the share-of-wallet for 10 product categories for each and every customer in the loyalty club.


Having tags on each loyalty club member showing share-of-wallet became a highly actionable indicator of growth potential in our client’s marketing. It made it possible to personalize communication and offers based on each club member’s personal potential by product category across own channels – and target lookalike potentials across paid digital media.