1. © AbsolutData 2014 Proprietary and Confidential 1 Behavioral segmentation for A leading U.S. Sports goods' retailer 1 A leading U.S. sports goods' retailer captures various customer related Transactional data gathered through Point of Sale The client had Transactional data for 12 M customers containing variables like:  Purchase Characteristics (recency, frequency & monetary value of purchase)  Store Level Data  Type of Goods/Category Purchased etc Objectives:  Identify a set of distinct & actionable value based customer segments  In-depth profiling of these customer segments to understand their needs, attitudes & psychographics  Provide actionable insights to customize marketing programs & messaging Project Background (Situation before we went in) Initial Diagnosis

2. © AbsolutData 2014 Proprietary and Confidential 2 A detailed PowerPoint report highlighting the following was delivered to the client:  Detailed Profiling of Identified Segments  Marketing Strategies for each identified profitable segment Output Collection of Psychographic Data of Customers through Quantitative Research Behavioral Segmentation using Customer transaction data provided by the client Detailed Profiling of Customers using Transactional data & Quantitative Research Data Build Identification Model using the segmentation variables and Customer transaction data provided by the client Methodology

3. © AbsolutData 2014 Proprietary and Confidential 3 How do we migrate customers into the best customer loyalists segments? Cross sell in off season Capture share from other retailers Cross sell in other categories Which customer segments have the highest opportunity for conversion? For each segment, what is the nature of the opportunity? Why is that the opportunity? Increase loyalty Increase GM % How do we retain or increase share with our best customer segments? Summer Sports 2 2 Winter Sports 3 3 Back to School and Team 4 4 Fitness Equip Purchasers 5 5 Golf Purchasers 8 8 Outdoor Purchasers 9 9 Cherry Pickers Sports Enthusiasts Spring Training 1* Workout Apparel Purchasers 6 6 Increase dollar spend Increase visits Action Sports Purchaser 7 7 Impact: Case identifying opportunities across key segments – Sample output (a)*Numbers represent priority order  For each of the seasonal segments, there is an opportunity to increase frequency of visits in the off-season.  Also, they spend less % of their purchases on Workout apparel and Fitness Equipment then Best Customer/Loyalists  Fitness seg. purchases a significant amount from other retailers  Workout seg. are a casual shopper that does not purchase heavily across categories  A leading U.S. sports goods' retailer enjoys healthy share with Action seg. but they don’t visit frequently  Golf seg. makes the majority of their golf purchases at other retailers  Outdoor seg. doesn’t purchase much outside of Outdoor equipment  Cherry pickers carry lower margin than other segments  Need to keep A leading U.S. sports goods' retailer best customer base strong