RFMC based targeted marketing reduces churn and delivers 5% increase in revenue

Driving actionable marketing through unsupervised maching learning and optimization to make the segments future looking

About the Client

VITA is Norway’s largest chain of beauty and wellness and currently has 215 stores throughout Norway. VITA’s mission is to be a destination for women seeking advice, inspiration, and good products in beauty, health, and wellness. We will satisfy this by focusing on good service, high professional expertise and well-known brands at low prices.


  • Flattening sales and high churn among loyalty customers

  • Integrate off-line and on-line sales and customer IDs

  • Marketing actions based on static personas

Solution Delivered

  • Set of extensive transaction driven segments including product and brand affinity

  • A novel segmentation approach that uses an optimization approach to ensure that the segments or pools are not only homogeneous within and heterogenous across but are also significantly different across a set of chosen future customer behavior

  • This makes the segmentation future looking and more useful for the marketeers

  • Uses optimization and iterative unsupervised learning

Business Impact

  • Strong correlation of segments with future value and future churn

  • Target driven marketing delivered 5% increase in annual sales