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Achieving Your Promo5onal Objec5ves with Science, Forecas5ng, and Analy5cs
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@REVIONICS
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About Retail TouchPoints ü Launched in 2007
ü Over 30,000 subscribers
ü To provide executives with
relevant, insightful content across
a variety of digital medium
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Panelists Debbie Hauss Editor-In-Chief
Retail TouchPoints
Aditya Rastogi Senior Manager Of Global Services
Revionics
Diana Mitten Product Director
Revionics
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Organiza5onal Silos Are Coming Down
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The Need For Enterprise-‐Wide Visibility
61% of retailers are banking on both enterprise-‐wide customer and inventory visibility to improve overall business processes. And while 59% believe they should have a single customer interacDon plaEorm that crosses channels, as many as 27% had no plans to implement this soluDon within the next year. -‐Retail Systems Research, August 2014
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Improving Analy5cs To Improve Decision-‐Making
“What's different now is that retailers are tooling up to have visibility of prices their compeDtors are charging, and with beNer analyDcs they're geOng smarter about which prices to match, go below or stay above.” -‐Greg Girard, IDC Retail Insights
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Analy5cs At Work What types of analy5cs do you currently use?
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Importance Of
Promo5onal Effec5veness
The majority (74%) of online retailers sDll promote irrelevant items to shoppers via email. -‐2014 Report: Customer RelaBonships: The DaBng Game
Confidential ©2015 Revionics, Inc.
Achieving Your Promotional Objectives with Science, Forecasting, and Analytics Diana Mitten, Product Director
Aditya Rastogi, Senior Manager Global Science Services
Confidential ©2015 Revionics, Inc.
Organiza5on Silos Coming Down
Increasing Marke5ng Spend
Promo ROI Increasing Technology Investment
New Trends are Emerging
$
Confidential ©2015 Revionics, Inc. 13
Challenges Facing Retailers
Disjointed Promo5onal Planning
Unproduc5ve use of
Resources
Mix of Vehicles, Products & Offer
Investment Visibility
Confidential ©2015 Revionics, Inc.
Organiza5on Silos Coming Down
Increasing Marke5ng Spend
Promo ROI Increasing Technology Investment
Op5mized Solu5on Drives Streamlined
Promo5onal Planning
Using Technology to Guide Op5mal Mix of Marke5ng Vehicles
Analyzing Promo5onal Effec5veness & Con5nuously Increasing ROI
Selec5ng the Right Technology to Meet
All Your Needs
$ 1 2 3 4
Overcoming Those Challenges
Confidential ©2015 Revionics, Inc. 15
Challenge - Collaboration Easier Said Than Done
Marke5ng
Merchants
Execu5ves
Crea5ve
Financial
Supply Chain
• Multiple departments involved
• Individual strategies
• Disjointed workflows
• Repetitive data entry
• Unshared decision points
Confidential ©2015 Revionics, Inc. 16
Promotional Processes are Complex
Confidential ©2015 Revionics, Inc.
Process
17
People System
Technology
Shape the Future State Process Op5mal Promo5on Planning & Execu5on
Confidential ©2015 Revionics, Inc.
8-‐13 Weeks Before Promo Go Live
Decision Making in Each Silo • Unshared decision Data • MulFple Revisions and Rework • EmoFons and Opinions
Data Entry in Different Systems
6-‐8 Weeks Before Promo Go Live
CollaboraFve PlaOorm • Decision support tools • InformaFon sharing • Approval Workflows • Science meets Art: supported by facts
Data IntegraFon across systems
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Process Transformation Drives Results
Confidential ©2015 Revionics, Inc.
Op5mized Solu5on Drives Streamlined
Promo5onal Planning
Using Technology to Guide Op5mal Mix of Marke5ng Vehicles
Analyzing Promo5onal Effec5veness & Con5nuously Increasing ROI
Selec5ng the Right Technology to Meet
All Your Needs
1 2 3 4
Key Factors to Success
Confidential ©2015 Revionics, Inc.
• Circular? • End Cap? • Email? • Store Displays? • Broadcasts? • Social?
Challenge – Optimizing the Marketing Mix
Confidential ©2015 Revionics, Inc.
• Advancements in technology • Capabilities way beyond spreadsheets
21
Step Away From the Spreadsheet
Confidential ©2015 Revionics, Inc. 22
Vehicle/Tactic Lift Projections
17.2%
26.2%
15.9%
18.6%
21.0%
29.7%
17.7%
17.4%
14.1%
• Lift Insights – Compare
options in a new light
• Reduce email circulation
– Twice a week to targeted promotions
Insights Into the Right Mix
Confidential ©2015 Revionics, Inc.
Right Products for Right Promotions
Promo/ TPR Promo/ Ad Profit EDLP
Elas5ci5es Reg ElasFcity Promo ElasFcity
• Variations in product behavior – Regular vs. Promo Elasticity
• Select effective promotional strategy – More bang for the buck
• Breakdown of items by promotion types
Increm
ental
Prom
oFon
al Respo
nse
Confidential ©2015 Revionics, Inc.
Op5mized Solu5on Drives Streamlined
Promo5onal Planning
Using Technology to Guide Op5mal Mix of Marke5ng Vehicles
Analyzing Promo5onal Effec5veness & Con5nuously Increasing ROI
Selec5ng the Right Technology to Meet
All Your Needs
1 2 3 4
Key Factors to Success
Confidential ©2015 Revionics, Inc.
• Am I promoting the right products? • Am I using the right vehicles? • Am I selecting the right offer? • Am I negotiating optimal vendor deals? • Am I promoting to the right audience?
25
Am I Building the Right Promotions?
Confidential ©2015 Revionics, Inc.
In-‐flight promo5on
Forecast to actual
Affinity & cannibaliza5on
Pre & post Analysis
26
• Adjust to the Market Changes
• Understand Cross-Item Impacts
• Forecast Accuracy
• Analyze Promotional Lifts
Analytics for Measuring Effectiveness
Confidential ©2015 Revionics, Inc. 27
Forecast vs. Actuals Accuracy Metrics • Forecast Analysis
– Understand Cause for change
• Continuous Learning – Rectify execution
issues
Analysis Provides Actionable Insights
Confidential ©2015 Revionics, Inc.
Op5mized Solu5on Drives Streamlined
Promo5onal Planning
Using Technology to Guide Op5mal Mix of Marke5ng Vehicles
Analyzing Promo5onal Effec5veness & Con5nuously Increasing ROI
Selec5ng the Right Technology to Meet
All Your Needs
1 2 3 4
Key Factors to Success
Confidential ©2015 Revionics, Inc.
• Finding the right solution – Support end-to-end planning? – Provide transparency? – Easy to use?
29
Will the Right Optimization Solution Please Step Forward?
Confidential ©2015 Revionics, Inc. 30
What to Look For
• What to look for – Workflow – Flexibility – Strategy – Vehicle mix – Vendor deals – Offers
Confidential ©2015 Revionics, Inc. 31
Identifying Promotional Objectives
Market Share Profit Traffic Halo/Affinity
Confidential ©2015 Revionics, Inc.
Making Informed Decisions Choosing Direction
• Simulation of alternatives
• Determine the direction for optimization
• Resulted increase in
• Revenue and Profit
32
Confidential ©2015 Revionics, Inc. 33
Where to Start
Confidential ©2015 Revionics, Inc. 34
What’s the Problem & What’s the Goal
• Inefficient PromoFon Planning • Manual PracFces • Rerunning LY PromoFons • ExisFng Value Measurement
• Increasing: • Market Share • Profit • Traffic • Halo/Affinity
Confidential ©2015 Revionics, Inc.
• 6% margin$ increase • 3% in Revenue & Units
(Market Share)
• Factors for Success – Collaborations across
teams – Setting direction and
driving towards objectives
35
Benefits of an Optimized Solution
3.7%
3.1%
6.0%
Unit Lic
Revenue Lic
Profit Lic
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Q &A // Panelists Debbie Hauss Editor-In-Chief
Retail TouchPoints
Aditya Rastogi Senior Manager Of Global Services
Revionics
Diana Mitten Product Director
Revionics
#CCS15
Next Session
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