Our clients are in our solution continuously throughout the day, drilling down on issues and uncovering valuable insights to grow their business or improve their margins. It is used by planners, finance teams, merchandising, retail operations and stores. We have worked together with our clients summarise some simple yet effective ways it is delivering tangible results. We like to call these our “value stories”.
Lapsed customers and declining new customer
The retailer wanted to re-engage with its customers through a digitial marketing campaign but identified falling new customer counts and incomplete details. They were able to use the Retail Score solution to set targets for stores and identify locations falling behind.
Not only did they lift their complete new customer counts, they were able to pin point by location, lapsed customers and what those customers bought. In addition, they identified the products that their frequent shoppers could be purchasing but were not buying.
Their digital campaign became targeted and relevant, stores became aware, accountable and motivated to collect complete customer details for future digital campaigns.
High customer returns
After consultation with the Retail Score, the retailers return rates were flagged as being higher than benchmark for that group. They were able to user the Retail Score solution to identify patterns in the data across product categories, store locations and customers driving the high return rates.
Customers purchase patterns were analysed by location showing which customers and which store locations had unusual purchase, return and purchase behavior.
The retailer modified their returns policy, communicated that to customers, published returns to area and store managers and alerted stores to potentially high impact customers to minimize the problem.
Reciepting goods in transit
High levels of goods in transit
The retailer was frustrated with the amount of goods in transit. After diving into the Retail Score solution, it was clear that stores were slow or not receipting the stock correctly. This lead to upstream problems in their supply chain including false stock.
A simple report was quickly built and published to the Retail Score store portal showing; the shipped from location, ship date, barcode, description, in transit quantity and receipted quantity. The report was automatically filtered to show goods not receipted within 7 days and within 4 weeks.
Area managers followed up with store managers who in turn made this an operational priority with staff. It also provided a good opportunity for staff to be reminded of the importance of basic inventory management and retail fundamentals.
Within a week, outstanding receipted stock halved and within 3 weeks, all stores reduced their outstanding goods in stock levels to well within tolerance.
Would you like fries with that?
We joke about the classic McDonalds quote at the service counter but the reality is, some sales staff are not identifying “up sell” opportunities. We have several examples where we have worked with our retail clients to determine the sales mix of their sales people.
A food court retailer needed to increase their margins and identified the outlets and team members with relatively low transactions with either a beverage or in-season premiums like avocado.
An apparel retailer wanted to focus on higher average transaction values and the Retail Score developed a simple measure to track the % of transactions with a high impact item. This enabled staff scoring which in turn lead to training, rotation and a staff reward programs.
Because our solution is at the transaction and barcode level, we can work with you to determine thresholds and transaction groupings that makes sense for your business by channel to improve results in store.
Season review shows sliding sales
Using the Retail Score solution, the Retailersaw seasonal sales fall by 15% versus previous years. Upon closer inspection, the decline was driven by a particular important segment in the category.
The segments’sell through rates at full price were low,as was the stock turn figures with an over-reliance on markdown sales for the segment.
By running the Retail Score price bucket analysis for the segment by season for the last 3 years, a clear pattern emerged. The retailers’ portfolio or assortment had diverged from one price point into a lower and higher price point.
In summary, they had expanded their range this season but they had crept out of a specific price point that was so popular with for their customers. This quantified the CEO suspicions and provided clear direction for next seasons campaign.
Bricks vs clicks, should there be a difference
The retailer has a very healthy online business and a growing traditional retail business but was shocked to learn that some key segments performed stronger than others online.
This raised the question, is that be default or by design. Why are similar segments performing better than others, are they missing some opportunities from their online channel?
Whilst it is expected that certain categories lend themselves to physical shopping in store, this particular sub segment should have been performing much better than it was.
The retailer was able to review the way this product line was marketed, priced and sold online to their online sales back up to the right level. What was so valuable here was the speed they could pin point the opportunity.
Analysis vs Reports
Faster is better
Like many retailers, planners were spendinga lot of time preparing and updating spreadsheets, linking data from one system to the next and madly rushing to complete the report in time for the weekly trade meetings.
Working with the client, the Retail Score automated their weekly trade report. This had a significant impact.
- Accuracy – The report is connected directly to their data warehouse with one version of the truth, not linked sheets proned to human error with complex cell referencing
- Sustainable – We removed key person risk as the report is now automated and the planner can actually now take the odd Monday off
- Speed - The report is now ready 24 hours faster but not only that, it is updated daily and through out the day so the meeting can be held on Monday not Tuesday giving the business more time to act
- Published – The report is now on their portal so attendees can access the numbers prior to the meeting so time was freed up to discuss key issues rather than go through the numbers
- Analysis – Planners time was redirected from low to high value tasks including analytical deep dives into business performance leading to retention of top talent
- Dynamic – The report was no longer static as users can now drill down to detail and slice or filter the report by location or product classification