Retail Promotional Optimisation
Synopsis
Engaged by the Chairman and CEO, Trusted Data was tasked with supporting a prominent retail group catering to the value-conscious consumer market segment. With an extensive inventory comprising over 90,000 SKUs with millions of monthly transactions processed across a sizeable retail estate, the client sought to gain deeper insights into the impact of their pricing and marketing strategies on consumer behaviour. Despite past endeavours using conventional marketing tactics and media spending, revenue growth had stagnated over the preceding five quarters, prompting the need for a novel approach.
Entrusted with this challenge, Trusted Data embarked on a mission to devise a solution that would rejuvenate the client’s business trajectory and unlock untapped customer demand.
Client Overview
🔸 Top 4 national retail organisation
🔸 c. 92,000 sku’s and over 20 million transactions per month
🔸 +140 stores across the country focused on wholesale and retail operations
Client Problem
“In the face of economic headwinds and declining commercial performance, the clients’ retail sales tactics needed fresh impetus. Consumer marketing efforts were primarily driven by offline promotions and ad agency spend lacked measurable ROI. We therefore recognised the need for a transformative approach to increase loyalty and transactions. Our data-driven offer campaigns considered crucial factors such as product movement, basket mix and products with declining shelf-life. It was time to pivot, innovate, and chart a new course for success.”
Analytics Delivery
Trusted Data tackled the most pertinent issues:
🔸 Improving the understanding of sku performance/value
🔸 Improving the understanding of customer behaviour
🔸 Improving the understanding of how sku’s sold together
🔸  Refining inventory levels at each store
🔸 Creating store level performance indicators to discern future performance and commercial value of each store (location, store size, sales, wastage, staff headcount)
The Challenge
⦿  Stagnant revenue over the previous 15 months
⦿  Economic challenges in the country had affected the retail environment
⦿  Current marketing investment focused on offline channels
⦿  Poor visibility of ROI in the use of ad agencies to raise awareness of in-store promotions
⦿  Offer campaigns failed to consider product movement and association at the store level
Trusted Data Approach
Our data modelling activities focused around the following core deliverables:
⦿  Computing sku revenue, risk, profitability by store
⦿  Association analytics to define probability of items selling together
⦿  Linking product association and movement, at the store level, with customer purchase data
⦿  Model bespoke sales campaigns to customers at POS
⦿  Track model performance and offer acceptance rate
OUR IMPACT
%
Direct Marketing Spend Reduction
%
Revenue Increase
%