For you as a retailer it is all about guiding your potential customers through all of your channels with a profitable transaction as a result. The question is, how do you maximize customer spending while ensuring the overall profitability? The answer is hidden in your data,if you could only find it and put these insights in the hands of the decision makers at the moment it matters.
What is the next step? Surely you want to know the benefits for your organization and you want to see it in action. This is where Extreme Applications for Retail comes in. If the technology you use is capable of real-time analytics, you can choose to develop such functionality from scratch. But why take the effort and the risks, if we have pre-developed it for you? This pre-packaged solution is made up of a unique set of software and Capgemini-developed data models, analytics, and predictive algorithms. Accelerating your organization to achieving business value.
Imagine you’re a food merchandising manager for a supermarket chain. With BBQ weather approaching, you discount sausages. Great, sales are up. What you don’t know is that independently, the drinks manager has had the same idea and discounted soft drinks. And in another department, another great mind had the same thought, and discounted special BBQ sauce.
Your data indicates that historically a high percentage of customers buy all three products for a BBQ. Why discount all of them, giving away so much margin? Studies show that for the average retailer, one out of every four promotions across categories and product lines is inefficient. Surely, there’s a smarter way.
The answer is hidden in your data, if you could only find it. Extreme Applications – Market Basket Analysis prevents margin-busting discounting and determines which product should be discounted to draw traffic. It puts valuable information in the hands of the decision makers at the moment it matters and helps you to eliminate inefficient promotions across categories. So when BBQ weather hits, the sun shines on everyone.
So, let’s do the math; how much of your revenue is sold using promotions? Assuming one out of four promotions is inefficient, and taking into account the average margin you give away with a discount, we probably are talking about quite an amount of margin. And then imagine if you could use these insights to create other, optimized, promotions.
Interested? The time to act is now! Watch the Extreme Applications movie on YouTube:https://www.youtube.com/watch?v=qDDf12DRxtI or contact us atwww.capgemini.com/extremeapps.
Note: This is the personal view of the author and does not reflect the views of Capgemini or its affiliates. Check out the original post here.