Blue Monarch Group

Case Study: Ecommerce Business Retains Customers after years of discount sales conditioning


An ecommerce brand was facing challenges with customer retention. The company had previously offered frequent and significant discounts to attract and retain customers. However, over time, this approach had led to a decrease in the brand’s perceived value and resulted in customers only purchasing when discounts were available. To address these issues, the company partnered with Blue Monarch Group, a consulting firm that specializes in data science, psychology marketing, and scientific storytelling.


Blue Monarch Group began by conducting a thorough analysis of the company’s customer data. They used data science techniques to identify patterns and behaviors among the customer base, including who was most likely to churn and what factors influenced customer loyalty. Based on this analysis, Blue Monarch Group developed a communication program that focused on the following:

  1. Psychology marketing – The program included a shift in the company’s marketing strategy, from relying on habitual discounting to emphasizing the value of the brand and the benefits of being a loyal customer. The program used psychological principles to create an emotional connection with customers, emphasizing the positive emotions associated with the brand rather than the discounts.
  2. Scientific storytelling – The program included scientific storytelling to communicate the company’s brand values and unique selling proposition to customers. By sharing stories of the company’s mission and values, the program aimed to create a sense of community and shared values with the customer base.
  3. Data-driven incentives – The program included data-driven incentives to retain customers. Using data science techniques, Blue Monarch Group identified the customers who were most likely to churn and offered personalized incentives to retain them. These incentives were based on the customer’s individual preferences and purchasing history, increasing the likelihood that they would remain loyal to the brand.


The implementation of the psychology-based communication program was found to be effective in retaining customers and increasing brand value. The program led to a significant decrease in customer churn and an increase in the number of loyal customers who made purchases without discounts. The data-driven incentives proved to be especially effective in retaining customers who were at high risk of churning. Overall, the partnership with Blue Monarch Group proved to be successful in helping the ecommerce brand achieve its goals and make a positive impact on its customer base.

Butterfly Effect

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