Achieving Your Promotional Objectives with Science, Forecasting, and Analytics

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Achieving Your Promo5onal Objec5ves with Science, Forecas5ng, and Analy5cs

Welcome Webinar ACendees

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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


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


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


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


Promotional Processes are Complex


Process

17

People System

Technology

Shape the Future State Process Op5mal Promo5on Planning & Execu5on


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



Promo5onal Planning




All Your Needs

1 2 3 4

Key Factors to Success


• Circular? • End Cap? • Email? • Store Displays? • Broadcasts? • Social?

Challenge – Optimizing the Marketing Mix


• Advancements in technology • Capabilities way beyond spreadsheets

21

Step Away From the Spreadsheet


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


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



Promo5onal Planning




All Your Needs

1 2 3 4



• 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?


In-‐flight promo5on

Forecast to actual

Affinity & cannibaliza5on

Pre & post Analysis

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•  Adjust to the Market Changes

•  Understand Cross-Item Impacts

•  Forecast Accuracy

•  Analyze Promotional Lifts

Analytics for Measuring Effectiveness


Forecast vs. Actuals Accuracy Metrics •  Forecast Analysis

– Understand Cause for change

• Continuous Learning – Rectify execution

issues

Analysis Provides Actionable Insights



Promo5onal Planning




All Your Needs

1 2 3 4



• Finding the right solution – Support end-to-end planning? – Provide transparency? – Easy to use?

29

Will the Right Optimization Solution Please Step Forward?


What to Look For

• What to look for – Workflow – Flexibility – Strategy – Vehicle mix – Vendor deals – Offers


Identifying Promotional Objectives

Market Share Profit Traffic Halo/Affinity


Making Informed Decisions Choosing Direction

•  Simulation of alternatives

•  Determine the direction for optimization

•  Resulted increase in

•  Revenue and Profit

32


Where to Start


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


• 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

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