AI Segmentation of Points of Sales. Discover your clients’ purchasing patterns and sell more effectively
Clustersense is an AI-based solution for segmenting retail outlets according to purchasing behavior. Designed for manufacturers, distributors, and retail networks.
It allows you to adjust your offers and promotional activities to a specific client segment and its profile to achieve sales or distribution goals faster and more effectively.
Knowing what products are preferred and in what relations by each segment, you can prepare personalised offers tailored to the specific profiles of points of sales and conduct promotional activities adjusted to each segment separately.
What is behavioral segmentation?
Behavioral segmentation is a way of grouping clients based on their purchasing behavior within brands, categories, subcategories, any other feature or chosen SKUs. ClusterSense automatically creates these groups, based on a detailed analysis of purchasing behavior conducted with the involvement of machine learning (unsupervised learning). Each cluster is represented by characteristics on a normalized chart which we call “spectrum” or “DNA” of given segment. Additionally, for each segment behaviour patterns are generated as SKUs lists with indication of their meaning within the given pattern (percentage share).
How does it work?
AI algorithms analyze historical data from each point of sale and automatically create segments according to parameters set for the segmentation experiment. The analysis is based on purchasing data from source file with sales / purchasing data records. Data sources can be internal – from corporate systems where initial import of records is needed, or external – where data is received from distributors and their systems (this is the most advanced model of using ClusterSense by manufacturer in fully integrated service, where external data is received continuously and daily).
Results are delivered in Power BI report generated automatically with integrated application for adding descriptions and tags for each segment. Final results of ClusterSense can be exported in open format (XLS, CSV) and consumed in your internal systems.
Clients using Emigo SFA, benefit from integration with ClusterSense where they receive Point-of-Sale’s 360 View and order recommendations in Emigo mobile app as well as segments published to Emigo Portal for easy offer and promotion creation.
Why ClusterSense?
The artificial intelligence used in ClusterSense means that what previously took many hours, now happens in the blink of an eye. Moreover, the algorithms see what might be missed by humans. With ClusterSense, you can be sure that the analysis of your clients’ behavior is effective, and the segmentation is in line with reality. Automating the entire process streamlines operational activities and helps increase competitive advantage.
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Who is ClusterSense for?
The artificial intelligence used in ClusterSense automate all actions that previously took many hours, now happens in the blink of an eye. Moreover, the algorithms see what might be missed by humans. With ClusterSense, you can increase the efficiency of trade-marketing activities and introduce new products to the market more effectively. Automating the entire process streamlines operational activities, improves relationship with clients, deliveer better service quality and finally get real competitive advantage.
Marketing and trade-marketing
can better understand the needs and preferences of clients, and thus – plan and implement more effective promotional, marketing campaigns, or develop better merchandising standards.
Sales teams
sales managers get information about products preffered within segments and can better adjust their targets and optimize trade activities.
Product managers
having information about client preferences and best-rotating products, can create offers tailored to the needs of specific segments and stores.
Marketing and trade-marketing teams
can better understand the needs and preferences of clients, and thus – plan and implement more effective promotional, marketing campaigns, or develop better merchandising standards.
Sales teams
and sales managers
gain information about the best-selling products in individual segments and can better adjust their sales process.
Product managers
having information about client preferences and best-rotating products, can create offers tailored to the needs of specific segments and stores.
What do you gain from ClusterSense?
By knowing your clients better and understanding their preferences and needs, you will:
Adjust your offer and SKU distribution strategy more accurately
Increase the efficiency of trade-marketing activities
More effectively introduce new products to the market
Quickly reach right clients with the right products
Benefit from similarity to other Points of Sale within the same segment to improve sales
Increase your market share
Use recommendations to deliver personalized offering and improve client’s experience
Spectrum: purchasing characteristics
Each segment includes outlets selected by AI/ML algorithms with similar purchasing behavior. The purchasing behavior characteristic for each segment is represented by a spectrum, which is a visual representation of the segment’s preferences, also for each individual store, pharmacy, or point of sale. The spectrum can be based on product features (categories, subcategories, brands or even list of SKUs) indicates preferences within given segment. You can also see how the profile of an individual sales point looks like against the segment (even on SKU level) – this helps you assess its potential for development of cooperation.
Try ClusterSense in your daily work!
Simply visit the app link on Microsoft AppSource, choose the right plan, and start your subscription.
ClusterSense core features
No matter which SFA system and BI tools you have, you can benefit from the core functionality of ClusterSense:
You can view results of the segmentation created by ClusterSense within convenient business intelligence reports (based on Power BI).
With clear visualizations, at various levels of detail, you will analyze the characteristics of individual segments. You will understand behavior patterns in the segments, also on SKU Level (purchasing patterns page of the report).
You can analyze generated segmentation in detail in many contextsand according to different features of the points of sales, for example: location, size, assortment, level of service, or type – just import them into ClusterSense as features describing the point of sales.
Segments can be freely described so that every employee can immediately identify the type of client they are dealing with. Descriptive fields and tags are used for this purpose. For example, by giving a segment the tag #premium, you specify that it includes points of sales for which quality and brand of products matter. You can use as many tags as you want (eg. #partners, #pricesensitive, #likenewarrivals etc).
You can use the segmentation regardless of the ERP or CRM system you use. You can export generated segments with descriptions and tags to XLS/CSV file, and then importthem into your systems for further use there.
ClusterSense features for Emigo SFA users
If you use Emigo SFA and Biqsens systems, you can analyze the effectiveness of the actions you have taken based on the segmentation in any report on Biqsens platform. Just filter the data using the published segments. The results of segmenation are also available for sales representatives in the form of client’s 360 View during the visit as well as SKUs recommendations within the order.
360 Point-of-Sale View for the Representative
Segments created in ClusterSense can be shared with your sales representatives in the Emigo SFA system with a few clicks. Added, a step before, descriptions and tags to segments help your people to easily find out to which segment the client belongs. While preparing to the visit, sales rep can go through 360 Point-of-Sale View to see profile, preferences and order history of a given client. This is especially useful for new employees and the way to preserve this knowledge within the company.
Moreover 360 View card shows also graphical presentation of the client’s segment, its profile, description and tags, as well as information about potential based on difference between behaviour of segment and this single client (point of sale).
Order Recommendations
Based on segmentation results, the Emigo SFA system can automatically suggest what products sales representative should order on behalf of a given client.
Recommendations are based on purchasing behavior of clients in a given segment and include not only products but also their quantities, adjusted to the potential of the store. Recommendations are dynamic SKU lists, indicating:
- New products for the client (that he didn’t buy yet),
- SKUs that the client should have (but still he doesn’t),
- currently popular SKUs within the segment,
- SKUs that will sell in the near future (this applies especially to seasonal products).
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European Funds
SAGRA TECHNOLOGY LIMITED LIABILITY COMPANY is implementing a project co-financed by European Funds entitled “Research and development work on the creation of a platform with built-in AI/ML engine, aimed at participants in the FMCG and Consumer Health distribution market chain.”
Project goal: Building a comprehensive service for the automatic segmentation of retail points of sale.
EU project co-financing: 3 178 807,51 PLN
FAQ - find the answer to your question
What is client segmentation and why is it important?
To effectively develop product sales, it is necessary to match the offer to the preferences of individual sales points. The best solution is to define client segments, i.e., those points that show similar patterns of behavior. Knowing the preferences of individual groups, one can prepare appropriate types of offers. In this way, manufacturers, distributors, and retail chains can plan effective sales development strategies and invest resources in locations where they have the chance to sell the most products.
How does ClusterSense help conduct client segmentation?
ClusterSense helps carry out client segmentation by grouping retail sales points according to their purchasing behavior patterns. Thanks to the analysis of purchase data from invoices, both from external distributors and from own systems, ClusterSense allows analyzing which products are most often ordered at a given sales point. Artificial intelligence and machine learning algorithms automatically analyze the sales history at each point and create segmentation based on similarities in purchasing patterns. This process is fast and precise and includes dependencies that may be overlooked by humans. ClusterSense also suggests recommendations for offers and promotions tailored to the preferences of individual segments.
What data is used in the client segmentation process with ClusterSense?
AI analyzes the sales history at each point based on purchase data from invoices. They can be supplied by external distributors or come from own systems (ClusterSense in the version for distributors or retail chains).
Why is proper client segmentation the basis of every effective marketing and sales strategy?
Proper client segmentation is crucial for every effective marketing and sales strategy because it allows for the precise tailoring of actions to the specific needs and expectations of individual client groups. By dividing the market into segments with different preferences (e.g., choosing premium products or cheaper ones), manufacturers can more effectively reach the right clients with the right products.
Each client segment is characterized by unique preferences, purchasing behaviors, and expectations. Properly conducted segmentation allows for choosing the right marketing strategy for the needs of a given client. For example, communication strategies, promotions, and even product features can be tailored to specific groups, which helps increase sales.
As a result, properly conducted client segmentation leads to an increase in the effectiveness of marketing and sales activities, and an improvement in client satisfaction.
