Impact Analytics enables a top US retailer to generate $2.5 million in EBIDTA with its data-driven product affinity solution.
Personalized product recommendations help drive increased store visits and higher customer basket size
- Collated, cleaned and analysed the POS/ transaction data for the previous 3 years.
- Studied this data to identify affiliated trends and the associated net margin impact.
- Employed a statistical model to find relationships between purchases and then delineated interactions between product categories.
- Simulated future sales using advanced data models including but not limited to the effect of product association.
Impact Analytics’ data-driven solutions generated the following business-critical insights:
- Product categories that don’t sell well by themselves sell better when they are a part of a product basket.
- Associated product placements increased the customers’ basket size by more than 15%.
- Personalized product recommendations based on customer’s purchase history increased the average number of visits by 25%.
- Product affinity analysis revealed categories that do not have any significant impact on store sales. Optimizing them freed up retail space and reduced inventory costs.
- Associated products/categories were re-organized and placed close to each other/in nearby aisles through the revision of in-store planograms to drive sales.
- A product recommendation engine was created for in-store associates.
- The client’s e-commerce site was revamped to include a section on “Recommended Products”.
- Combined offers and product coupons were developed to drive sales of low-selling products by combining them with high-selling products.
Impact Analytics’ product affinity solution enabled the client to streamline its product offering by identifying categories that drive sales, provide customized product recommendations and insights for designing the most profitable store planogram. Together, these initiatives generated an incremental $3 million in FY 2017.