The inside scoop on boosting sales through spot-on analytics Retailers collect a huge amount of data, but don't know what to do with it. Retail Analytics not only provides a broad understanding of retail, but also shows how to put accumulated data to optimal use. Each chapter covers a different focus of the retail environment, from retail basics and organization structures to common retail database designs. Packed with case studies and examples, this book insightfully reveals how you can begin using your business data as a strategic advantage. Helps retailers and analysts to use analytics to sell more merchandise Provides fact-based analytic strategies that can be replicated with the same success the author achieved on a global level Reveals how retailers can begin using their data as a strategic advantage Includes examples from many retail departments illustrating successful use of data and analytics Analytics is the wave of the future. Put your data to strategic use with the proven guidance found in Retail Analytics.
Retail Analytics - The Secret Weapon
Description
Table of Contents
Preface ix Acknowledgments xi Chapter 1 Retailing Analytics: An Introduction 1 Retailer Goodwill 2 The Inside Scoop: Retail Power Brokers 2 Retail Organization 3 Real Estate Marketing 5 Creative Advertising Marketing 6 Operations Marketing (Research) 6 Direct Marketing 7 Strategic Marketing 7 Communicating to the Retail Organization 8 Point of Sale versus Market Basket Data 9 Data Is Gold 10 Data as Revenue: The Price of Retail Data 12 Chapter 2 Retail and Data Analytics 15 Hard-Core Data Terms: Now We re Talking about the Fun Stuff 15 Market Basket 16 Data Storage 101 17 Data without Use Is Overhead 19 Case Studies and Practical Examples of Data-Related Retail Projects 20 Trade Area Modeling 20 Real Estate Site Selection Modeling 21 Competitor Threat Analytics 22 Merchandise Mix Modeling: Combining Multiple Data Sources 23 Celebrity Marketing: Tracking Effectiveness 26 House Brand versus Name Brand 28 E-Business: Clicks and Mortar 29 Affinity Merchandising: Merchandise Cross-Sell Case Study 33 Market Basket Analysis: Examples 35 Store Departmental Cross-Selling 40 Single Category Affi nity Analysis: Paper Towels 43 Best Checkout Register Impulse Items for Christmas Season: Case Study 45 Chapter 3 The Apparel Industry 47 Many Types of Apparel Businesses 47 Retailer Building and Location, Location, Location 48 Who Is My Customer? Size Up the Opportunity and Show Me the Money! 49 Evolution of a Brand: Not Your Father s Blue Jeans 50 Diversifi cation: Spread Risks over Multiple Businesses 51 Critical, Need-to-Know Information in Apparel Analytics 52 Seasonality: Styles Change like the Wind 52 Seasonal Counterpoint 54 Merchandise Placement and Presentation: From Racks to Riches 54 Accessories 55 Next Best Offers 55 Promotions: Lifeblood of the Apparel Business 57 Retail in General: Impulse Buying 57 Chapter 4 Importance of Geography and Demographics 59 Understanding the Tools and the Data Requirements 60 How Geographic Information Systems Work: Science behind the Tools 60 GIS Layers of Information: Building a Map, Layer by Layer 61 How Geography Fits into Retail: Location, Location, and Location! 61 Retail Geography: Data and Lots of It 61 Retail Data: Internal Data Collection 63 Retail Trade Areas: Differing Methods for Debate 63 Zip Code Data: Forecasting Application Volume by Store 66 Now That We Understand the Tool and the Data, What Do We Do? 66 Card Preference Opportunity by Zip Code: Case Study 66 Example of Sales Penetration Map 71 Market Observations: Additional Uses of the GIS Tool 72 Chapter 5 In-Store Marketing and Presentation 75 Understanding the Different Store Designs 76 Old Theories of Merchandise Placement 77 New Theories of Merchandise Placement 77 Mass Merchandisers Were Slow to Catch On: Does Convenience Translate into Sales? 78 All about Pricing 78 Everyday Low Price 79 Loyalty Discount Philosophies 82 Tiered Pricing 82 Types and Sizes: Retail Store Strategies 84 Store in a Store: Make Shopping Convenient 84 What s in a Store: Convenience Stores to Hypermart Stores 85 Hypermarts: When Is Big Too Big? 86 Warehouse Clubs: Paying for the Privilege to Shop 87 Shopping by Design: Traffi c Patterns 88 Category Management: Science behind the Merchandise Mix 91 Merchandise Placement: Strategy behind the Placement 93 Specialty Departments: Coffee, Breakfast, and Pizza 95 Other Specialty Departments 95 Receiving Dock 97 Stocking the Counters 98 In-Store Media: Advertising or Just Displays? 99 Receipt Messages 103 In-Store Events 104 Holidays 104 Analytics: Tracking a Moving Target 104 Marketing Outside of the Store 105 Chapter 6 Store Operations and Retail Data 107 Setting Up the Store for Success: Strategic Uses of Data 107 Labor Forecasting 108 Importance of Accurate Labor Forecasting: The Cost of Doing Business 109 Consumer Differentiation at the Point of Sale Register 111 Heating and Cooling: Centralized Thermostats 112 Intrastore Communication 112 Replenishment and POS Sales: Cause and Effect 114 In-Store Career Path: Stockperson to Store Manager 115 Chapter 7 Loyalty Marketing 117 Loyalty Programs 117 Who Is the Sponsor for the Program? 122 Questions to Answer before You Begin 123 Total Program Incentive: Are You Loyal? 125 From the Consumer Finance Credit Card Retail Perspective 127 Loyalty Segments: Develop Them Early 128 Loyalty at POS: Different Stages and Levels of Loyalty 130 Kmart s School Spirit Loyalty Program 133 Australian Loyalty 135 FlyBuys Rewards and Loyalty: Australia 136 Additional Loyalty Programs 137 The Retail World Is Changing 138 Social Media 139 Glossary 143 About the Author 157 Index 159
Author Description
About E Cox
Emmett Cox is Senior Vice President of Consumer and Business Intelligence at BBVA Compass Bank, where he uses his retail experience in the development of strategic-based consumer programs. He has also worked for Walmart Financial Services, GE Money Global, and Kmart. He has lectured in many CRM and marketing conferences and seminars, including the Paris Loyalty Forum, Czech Republic Loyalty Management, ACNielsen Category Management, Spectra Marketing and Intelligent Targeting, Teradata NCR Partners, and others in the United States; Coolum, Australia; and Vienna, Austria.