© 2014 Alteryx, Inc. | Confidential

Customer Data to Cash Register: Retail Analytics Close the Gap

© 2014 Alteryx, Inc. | Confidential 2

Speakers

Ritu JainDirector of Industry Marketing, Alteryx

Mark HeckmanPrincipal, Mark Heckman ConsultingFormer VP of Marketing, Marsh Supermarkets

Jimmy GarrettSales Engineer, Alteryx

© 2014 Alteryx, Inc. | Confidential© 2014 Alteryx, Inc. | Confidential

Agenda…

1. Current State of Advanced Analytics in Retail

2. Top Inhibitors to Wider-Spread Analytics Use

3. Steps Successful Retailers are Taking to Expand Usage

4. Real Life Case Examples

3

© 2014 Alteryx, Inc. | Confidential 4

Showrooming/ Webrooming a Norm

© 2014 Alteryx, Inc. | Confidential 5

Many Paths-to-Purchase

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Inventory Distortion: A $800B Problem!!

© 2014 Alteryx, Inc. | Confidential 7

4000+ and Counting!

© 2014 Alteryx, Inc. | Confidential

Data is the Linchpin

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Current State of Data-Driven Decision-making

Source: RSR Research Benchmark Report 2014 – Retail Analytics Moves to the Frontline

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Desired State of Data-Driven Decision-making

Source: RSR Research Benchmark Report 2014 – Retail Analytics Moves to the Frontline

© 2014 Alteryx, Inc. | Confidential

25+ Years of Retail Marketing Experience at Randalls/Tom Thumb &

Marsh Supermarkets

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Marsh Supermarkets….A History of Innovation and Industry Thought Leadership• 90 Stores, Central Indiana-Western

Ohio….• $ 1.1 Billion in Sales• First UPC Scanned in Troy, Ohio,

1974

Mark Heckman• Marketing Executive, VP of

Marketing Until 2011• Author, Industry Study and

Harvard Business Case

© 2014 Alteryx, Inc. | Confidential

Our Original Aspirations! • Weekly Targeted Programs to Select Shopper

Groups

• Desktop Targeting, Query and Reporting Tool

• Standing Program for “VIP” Shoppers

• Create Personalize Experience on website

• Expand Customer Specific Data into the Merchandising Arena

• Category Growth• Store Layout • Assortment

© 2014 Alteryx, Inc. | Confidential

Issues That I Faced Behind the Chair

• Limited Use of Customer Data in Decision Making Process

• Lots of Data, Several Data Silos, No Interaction

• No Dashboard Access to Data

• Little Co-operation or Data Sharing Between Departments

• Insufficient Budget and Human Resources to Execute Data-Driven Programs

• No Stated or Accepted Plan In Place to Enhance Data-Driven Positioning in the Enterprise

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The Resulting Customer Data-Driven Roadmap

Customer Identification/Behavior

s

Increase Engagement

Include

Merchandising/Operations

Expand to other Areas of

Enterprise

Phase 1-Discover Phase 2-

Engage Phase 3- Involve Phase 4-Expand

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Phase 1. Customer Identification

• Created a Plan to Accelerate Data Access and Eliminate Reliance on IT for Data Pulls

• Define Communication Options For Near Term and Future

• Evaluate Shopper Engagement Options• Segmentation• Clubs• Geographies• Syndicated Appends

• Determined Shopper Segmentation Approach

© 2014 Alteryx, Inc. | Confidential

Phase 1- Customer IdentificationShopper Segmentation ---Key Questions to Answer With Segments

What is the true value of each

segment to your business?

Is the segment large enough to

move the needle?

How will we communicate to each segment?

How effectively can the

segmentation scheme be

integrated into the core

elements of the business?

© 2014 Alteryx, Inc. | Confidential

Phase 1- Customer Identification- Shopper Segmentation Variables

• Net Dollars per period shopped

• Trips per period shopped

• Days Since Last Purchase

• Periods Shopped (4wk, 13 total)

• Avg. Net Dollars per Trip

• # Departments Shopped

• # Categories Shopped

• Avg. % Discount

• $ & % Spend on Front Page Items

• $ & % Spend on PL

• % Spend Weekdays

• % Spend Weeknights

• % Spend Daytime

• % Spend Evening

• % Spend Night

• $ & % Spend on Grocery• $ & % Spend on Dairy• $ & % Spend on Frozen• $ & % Spend on Produce• $ & % Spend on Deli• $ & % Spend on Bakery• $ & % Spend on Meat• $ & % Spend on Non-food• $ & % Spend on HBC• $ & % Spend on AO• Category relevancy• Item relevancy

Many customer segmentations stop at only 3 indicators of customer worth – Recency, Frequency and Spend…

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Phase 2- Increase Engagement - Linking Shoppers to Categories

Each Shopper Segment’s Relationship with Categories and SKU’s Was Established.

Categories were Defined for Each Shopper Segment According to the Categories “Breadth of Appeal” and “Spending Index”

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Phase 3—Involve Merchandising and Operations

Retailers need to combine traditional marketing and advertising activities with merchandising, each have assets needed by the other.

As a transitional tool away from mass to a more targeted approach…..affinities to front page circular items are scored to better understand what the optimal mix of FP items to drive sales among key customer segments

© 2014 Alteryx, Inc. | Confidential

Phase 3- VIP Mailer ResultsDepartment Level Impact

We decided to focus several key offers in the Produce Department as many of the top shoppers in the segment communication indexed extremely high in Produce.

The results were encouraging. Nearly 10% lift in the entire Produce Dept. and in 9 of the stores with very large Produce Departments, 20% Departmental Lift was experienced.

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Phase 4---Solving Retail Problems with Customer Data

Out of Stock Prevention Represents HUGE Incremental Dollars to Both Retailer and Brand. Customer Data Both Household Level and Not are Key Elements to Staying In Stock

SKU Assortment Now is Frequently Driven by VIP and other Critical Shopper Segment’s Affinities to Categories and Products

Store Layout Can Now be Refined and Adjusted to Leverage Traffic Patterns of Key Shopper Segments within the Store

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Organizational Inhibitors

Source: RSR Research Benchmark Report 2014 – Retail Analytics Moves to the Frontline

Cu

ltu

reTe

ch

nolo

gy

© 2014 Alteryx, Inc. | Confidential

Large IT Project

Lots of Tools

Many Months…

The Current Approach to Insight

FAIL

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Rep

ort

The Alteryx Approach

All Relevant Data

Access, cleanse, and blend data with unique packaged data options

Rapid design of predictive analytics with unique spatial

understanding

Packaged Market & Customer Data

Consumerize the use of sophisticated analytics

Enrich

An

aly

ze

Ble

nd

Text

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Customer Success

Customers across the world

300+Strong Foundation

Renewal rate

Ranked “Visionary” by

Gartnerin

Both “Advanced Analytics” and “BI and Analytics”

magic quadrants

95%+Corporate Info.

Associates across North America & Europe

165+

Leader in Data Blending and Advanced Analytics

© 2014 Alteryx, Inc. | Confidential

Big Box and SpecialtyRestaurant

sGrocery

Consumer

Goods

Our Retail Customers….

© 2014 Alteryx, Inc. | Confidential

Marketing CorporateMerchandisin

gSupply Chain

Results Speak…

Reduced Site

Selection

Time 95%;

Franchise

Cannibalizati

on Analysis

Assortment

Optimization

>100,000

SKUs for

10,000+

Locations

Reduced

Inventory by

31% and

Freed-up

~$20M in

Working

Capital

Doubled the # of

Customers

Shopping Online

& In-Store.

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Recommendations

1. Ensure access of data, analysis and reporting to those that need the data, minimizing dependence on legacy systems and IT

2. Build cross- functional relationships and joint goals to ensure inter-departmental cooperation, tear down fiefdoms

3. Tie metrics and results of data-driven initiatives back to organizational goals -- departmental sales, # of units, shoppers, etc.

4. Take small, iterative steps with data-driven programs, gaining quick wins -- and use those wins to build executive support, promote data-based culture

© 2014 Alteryx, Inc. | Confidential 30© 2014 Alteryx, Inc. | Confidential

Questions?

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Key Terms

• Retail Analytics• Customer Analytics• Customer Loyalty• Merchandising Planning• Demographic Analysis• Customer Data• Customer Scorecards• Multichannel Analysis• Big Data Analytics• Big Data Analysis• Predictive Analytics• Data Blending• Advanced Analytics• Data Artisan• Data Analyst

• Alteryx• Mark Heckman• Marsh Supermarkets• Ritu Jain• Alteryx Analytics Gallery