Data Nectar implemented a prescription-based predictive model to boost customer retention for a pharmaceutical retail chain.
The client was facing the challenge of keeping track of the high-value customers and defining the right approach towards connecting them proactively to deliver an enhanced customer experience to improve loyalty and brand’s perception.
Predicting a customer’s purchase pattern based on the prescription was important for the retail chain to enable the right actions at the right time for engaging the customers. Prescription-based predictive modelling on top of a modern data warehouse enabled the retail chain to improve customer retention by 70%
70%
Improved customer retention
11%
Increased sales of critical and high value drugs
68%
faster availability of sales performance reports for stakeholders
Client based in India owns one of the fastest-growing pharmacy chain. With more than 35 retail stores across India and a team of 500+ employees, the client is fast emerging as a leader in offering healthcare and wellness products.
The client operates in a competitive pharmaceutical retail domain and with more than 5000 products ranging from common OTC drugs to advanced medications for chronic ailments to the life-saving drug as well. Thereby, retention of customers with high lifetime value was one of their key strategies to stay competitive and fuel the growth.
INDUSTRY:
Pharmacy, Health & Wellness Store chains
LOCATION:
India
About:
15000+ branded, generic, life-saving and wellness products.
Emplementations
- Enterprise-grade ETL
- EDW(Enterprise Data Warehouse)
- Dashboard & Report Development
- Managed BI
- Data Security
Business requirement
The client’s pharmaceutical retail business caters high-value prescription drugs that are highly in demand from customers with chronic medical conditions. These medications are prescribed as dosage for a significant length of time, typically years to lifetime.
- Aggregate ‘high-value’ patient’s data and reach them out at the right time, and with the right call-to-action to improve customer retention.
- The high volume of Odoo-based POS transactional data didn’t provide a mapping of categories of high-value drugs, standard dosage, customer’s buying behavior, etc., important to execute an effective marketing strategy.
- Building Business Intelligence solution was inevitable to address business challenges by enabling the organisation to make appropriate customer engagement plans based upon the data driven insights.
TRACKING THE PATTERN
- Analyse customer transactional history.
- Aggregate Odoo-based POS to data warehouse.
- Aggregators map patient’s drug requirement patterns to inform the retail stores about possible sales.
The solution
Data analytics and observations helped to :
- Identify missing visits/ irregular purchase of specific medications
- Make frequency-based demand predictions of life-saving drugs for store’s stock management
- Fine-tune marketing campaigns & content creation
- Initiate doorstep delivery with value-added services to boost retention for high worth customers
- Predictive inventory replenishment alerts ensured the availability of drugs
KPIs
- Customer footfall vs Sales
- Patient demographics
- Order volume & frequency
- Buying pattern
- Drug availability
Solution benefits
70%
Improved customer retention where, consumer data analytics-enabled identification of right time and content for customer follow-ups, resulting in more loyal and connected customers
11%
Increased sales of critical drug sales by improved customer service practices based on data-driven insights on high-value customer
5x
faster availability of sales performance reports for stakeholders.The reporting solution enabled availability of storewise reports to stakeholders on daily basis instead of once or twice earlier a week earlier
Retained customer is a committed business asset and has the potential for up-sale & cross sale. Want to know how to leverage your data assets through strategic customer retention?
