Retail

Retail

Combining location, product and customer data to deliver a competitive edge for any marketer in the retail sector.

New Datamart link to

THE CHALLENGE

Although a large retailer had an extensive customer base, it was unable to effectively utilise its value as customer records were housed in disparate systems — preventing easy access or leverage.

THE SOLUTION

Although the retailer had a large amount of customer data, it was not centrally located or configured for marketing analysis. To address this issue, Datamine created an analytical ‘data mart’ (essentially a subset of an overall data warehouse), comprised of multiple source systems which tied the customer information together — providing a strong platform from which to drive communications.

THE RESULT

The $150k investment was recouped easily by the uplift in sales on the very first day the Datamart was used for targeting. In conjunction with additional analytics and capability supplied by Datamine to bolster the internal team, this retailer’s data mart has subsequently delivered well beyond expectations — generating tens of millions of dollars of extra sales.

Catalogue Optimisation link to

THE CHALLENGE

Catalogue deliveries are a significant sales driver for many retailers – particularly around holiday weekends and seasonal changes. Although in a very general sense catalogue drops are considered ‘direct’ advertising, they have not be accurately targeted in the past and are not personally addressed. In this case a large retailer was preparing to launch its new season stock and wanted to know the optimum areas for catalogue distribution to ensure it achieved highest possible return on investment.

THE SOLUTION

Datamine analysed the retailer’s transactions and Business Insight data and discover that 80% of the households that catalogues were delivered to generated 93% of the instore spend. The correlation of this statistic being that 20% of the households that catalogues were delivered to were only generating 7% of the spend. As a result of this analysis, catalogue delivery walks were ranked. ‘Hot spots’ and ‘not spots’ were identified and a new master list for catalogue delivery was created for future distributions.

THE RESULT

The solution was rolled out nationally and delivered a direct cost saving to the retailer, without adversely impacting its sales. More specifically, the new season period saw a 31% lift in sales over the same period the previous year — an excellent result considering wider retail spend during the period was down across the board.

Out of Stocks link to

THE CHALLENGE

Anecdotal evidence at a large retailer indicated that out-of-stock issues were potentially having an effect on sales, but justifying additional investment into distribution was difficult because the lost revenue from out-of-stocks could not be quantified. The retailer had tried and failed to perform these analytics using supply-side information.

THE SOLUTION

Datamine was asked to examine the problem and by using demand-side analytics was able to provide a good estimation of the cost of out-of-stocks at a product and store level. This not only helped with the investment decision, but also had the added benefit of highlighting the significant disparities in operational effectiveness between different stores.

THE RESULT

The results of the double benefit were seen quickly as the $80k analytics job rapidly delivered a net benefit of several hundred thousand dollars per week by improving stock availability and out-of-stock processes.

Cannibal link to

“Not only were Datamine easy to work with and providers of an excellent quality of service, they also helped us to avoid launching a store which would have, at best, been marginal.”

Chief Operating Officer

THE CHALLENGE

A large homeware chain was presented with an opportunity to open a new store in a small regional city. Of concern, however, was the potential impact the new store would have on the chain's existing locations in the surrounding area. The group approached Datamine in order to gain a better understanding of what impact a new store would have on its sales in other locations nearby.

THE SOLUTION

Datamine used its exclusive Business Insight data source to understand more about the homeware spend in the region - and assess potential spend should the new store go ahead. By looking at a catchment area including five of the retailer's other stores within a 75-kilometre radius, Datamine was able to estimate the potential cannibalisation factor.

 

THE RESULT

Datamine was able to present an accurate gauge of the market size and potential (in actual projected sales dollars) for a future store given the competitors already in the area and typical market share patterns.

Cannibalisation was quantified and this assessment ranked the potential new store at the lower end of the total group in terms of likely sales. Based on this assessment, the new location was deemed unlikely to reach the group’s internal requirements. Following the delivery of the Datamine analysis, the group decided not to proceed with its expansion plans in this location.

Mitre 10 link to

THE CHALLENGE

Mitre 10’s ongoing goal is to improve the shopping experience of its customers. To support this initiative Mitre 10 measured a range of customer experience indicators across all channels of its business. What was missing, however, was an over-all customer experience picture – an issue Mitre 10 asked Datamine to resolve by collating and analysing this data and presenting it in such a way that Mitre 10 could take immediate action to address any customer experience issues.

THE SOLUTION

Of the many customer variables available, Datamine selected a core range that would best represent the over-all Mitre 10 customer experience. Included amongst these were transaction data, net promoter score survey results, customer memberships and loyalty swipe rates. Appropriately weighted, these indicators formed the basis of a Customer Experience (CX) score for each Mitre 10 store. The reports were also interactive, allowing adjustments to targets and new indicators to be added as required. Every store received an over-all CX score, a summary of the core indicators used to calculate the score - and a 4-week comparison on performance measure.

THE RESULT

Using the Datamine CX reports, individual stores can now track how they’re performing against CX targets (and in relation to other Mitre 10 outlets). Armed with an up-to-the-minute customer experience score, Mitre 10 stores can take specific and immediate action to improve their individual CX indicators. Since receiving the reports, individual Mitre 10 stores have been empowered to take greater ownership of their customer experience, resulting in improved CX scores across the entire chain.