Conversion Growth Through RFM Segmentation – P&G
Procter & Gamble (P&G) manages a wide portfolio of leading FMCG brands including Gillette, Old Spice, and Orkid.
In a competitive personal care market, precise audience targeting and quick delivery are essential to winning customer loyalty. This case study outlines how RFM (Recency, Frequency, Monetary) segmentation and last-mile delivery integration significantly boosted conversions and customer satisfaction.
By combining advanced customer segmentation with personalized campaigns and rapid delivery, P&G achieved substantial improvements in both conversions and customer loyalty. This approach demonstrates that in the FMCG space, precision targeting and operational speed can be a decisive competitive advantage.
Background & Challenge
With an extensive range of products and a diverse customer base, P&G faced three main challenges:
- Accurate Audience Segmentation: Identifying high-value consumer groups within a broad target market.
- Improving Conversions in Low-Performing Segments: Lifting engagement rates in segments with historically low response.
- Delivery Speed as a Loyalty Factor: Meeting customer expectations for fast delivery to enhance brand trust.
Objectives
- Maximize conversions by focusing on high-potential customer segments.
- Personalize messaging for better engagement.
- Leverage faster delivery to increase satisfaction and repeat purchase rates.
Strategy & Implementation
RFM Segmentation
- Used transaction history to group customers by purchase recency, frequency, and monetary value.
- Identified top-tier segments with the highest likelihood of purchase.
Personalized Messaging & Exclusive Offers
Designed campaigns tailored to each RFM segment’s behavior and needs, with special discounts for top buyers and reactivation offers for lapsed customers.
Last-Mile Delivery Integration
Partnered with rapid delivery services to ensure products reached customers in the shortest time possible.
Result
40
higher conversion rate in segment-based campaigns compared to non-segmented campaigns.
20
increase in delivery satisfaction scores.
35
improvement in campaign ROI.
