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Case Study

Turning data into business intelligence

Problem:
Rapidly approaching retail maturation; needed a new strategy for reaching customers
Location decisions based on favored real estate criteria vs. customer data and store performance
Needed better insight and intelligence to identify the right locations
 
Business Intelligence:
Aggregated and analyzed customer profile data with real estate data
Created best customer profile
Determined store success and failure drivers through analysis of store performance against demographics, psychographics and competitive site attributes
Developed opportunity map which outlined population with propensity to purchase, by neighborhood across US
Created predictive tools to estimate opportunity for proposed locations
 
Solution:
Turning data into business intelligence
Customer profile analysis revealed that location strategy was not aligned to existing customer profile
Misalignment was actually creating a decrease in store performance
 
Impact:
Increased speed-to-market by focusing transaction teams on areas with the greatest likelihood for access to the right customers and success
Mitigated risk by quickly identifying locations with limited opportunity for success
Revised site selection strategy and established new market targets and approval criteria
Under the new strategy, the percentage of stores hitting performance goals increased by 55%

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