Achieving Your Promotional Objectives with Science, Forecasting, and Analytics

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  • #CCS15

    Achieving Your Promo5onal Objec5ves with Science, Forecas5ng, and Analy5cs

  • Welcome Webinar ACendees

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    Follow this Webinar on TwiCer!

    #CCS15@ConnectConsumer

    @RTouchPoints

    @REVIONICS

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    About Retail TouchPoints Launched in 2007

    Over 30,000 subscribers

    To provide executives with relevant, insightful content across

    a variety of digital medium

  • #CCS15

    Panelists Debbie Hauss Editor-In-Chief

    Retail TouchPoints

    Aditya Rastogi Senior Manager Of Global Services

    Revionics

    Diana Mitten Product Director

    Revionics

  • #CCS15

    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 dierent 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 Eec5veness

    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 & Oer

    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 Eec5veness & 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 Dierent Systems

    6-8 Weeks Before Promo Go Live

    CollaboraFve PlaOorm Decision support tools InformaFon sharing Approval Workows Science meets Art: supported by facts

    Data IntegraFon across systems

    18

    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 Eec5veness & 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 Prot 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 Eec5veness & 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-ight promo5on

    Forecast to actual

    Anity & 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 Eec5veness & 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 Prot Trac Halo/Anity

  • 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

    Whats the Problem & Whats the Goal

    Inecient PromoFon Planning Manual PracFces Rerunning LY PromoFons ExisFng Value Measurement

    Increasing: Market Share Prot Trac Halo/Anity

  • 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

    Prot 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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