17% like-for-like sales growth with customer strategy and segmentation at LuxuryRetailCo
Luxury / Fashion / Retail
Growth Strategy
Client Context And Challenges
Global LuxuryRetailCo. was facing a declining customer base as its consumers aged. Global LuxuryCo needed to both push short-term sales and build long-term loyalty among younger clients to sustain growth.
Challenges:
Nearly 70% of clients were lost or improperly managed due to antiquated systems
The company’s existing process prioritized proven high-spending clients with excessive in-store attention and VIP events, while newer, younger clients were largely overlooked.
Sales associates were protective of clients due to commission-based incentives
Our Approach
Designed a segmentation model based on current and future spending propensity using machine learning
Implemented a clienteling strategy balancing engagement, personalization, ROI, and manageable sales associate workloads.
Provided tools, i.e. virtual assistants, engagement menus, clienteling budgets
Established clear KPIs and reporting frameworks to improve transparency and accountability.
Collaborated with HR and leadership to align strategy with employee contracts and secure adoption
Addressed system limitations with alternative processes and defined accountability
Impact We Achieved
Reversal in client retention trends and laid the groundwork for sustainable growth with younger, high-potential customers:
17% year-over-year organic sales growth in a stagnant retail market
21% increase in retention among younger clients, with a particular focus on those predicted to become high spenders