Recovered $20+ mm and Improved Customer Journey

Situation

A regional supercenter chain in the Northeast US wanted a scientific, analysis-driven, system that would improve Merchandising’s item selections and promotion planning. The company wanted to simultaneously integrate co-op fund allocation and management with marketing programs so that vendor fund allocation would be close tied to performance.

Approach

• Our approach was to work in a team across merchandising, advertising, and vendor fund management groups. We measured promotion ad lift by item, volume and profit. This created an analytics-based process for item selection and promotion.

• The new process went from merchandise review and item selection, to FP&A improvement, and marketing efficiency.

Result

• Our solution successfully delivered analytics-driven ad item selection for the top 1,000 items weekly. It improves promotional fund tracking, and automates versioning of marketing messages across all customer touch points.

• Quickly identified ‘cherry-pickers’ and capitalized on this to attract better shoppers and increase transaction basket size.

• Recaptured millions of dollars in ‘leaky’ vendor funds.

• Increased omni-channel vendor fund usage by $20 million.