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Pick Me a Winner: Crocs uses data to improve product innovation
Technology Category
- Analytics & Modeling - Machine Learning
- Analytics & Modeling - Predictive Analytics
Applicable Industries
- Consumer Goods
- Retail
Applicable Functions
- Product Research & Development
- Sales & Marketing
Use Cases
- Demand Planning & Forecasting
- Predictive Quality Analytics
Services
- Data Science Services
- System Integration
The Challenge
Developing new products in the fashion and footwear industry is fraught with risk, as brands may invest significant resources only to find that their products do not meet customer expectations. This challenge is exacerbated by the rapid changes and trend influences in the industry. Crocs, known for its comfort-focused clog shoes, faced a decline in relevance due to a lack of style and innovation. Despite efforts to bring new designs to market quickly, Crocs struggled to consistently identify which categories represented the best opportunities for new products or line extensions. The company needed a more effective way to validate and test designs to ensure they resonated with customers and aligned with market trends.
About The Customer
Crocs, a well-known footwear manufacturer, gained popularity with its comfortable and simple clog shoes introduced in 2002. Over the years, the company developed a large following but faced challenges in maintaining relevance due to its unchanged design. To revitalize the brand, Crocs collaborated with designers and celebrities, releasing limited-edition and innovative versions of its clogs. The company's motto, 'Come As You Are,' emphasizes individuality and comfort. Crocs has diversified its product offerings to include sandals, sneakers, and boots, aiming to attract new fans while retaining loyal customers. The brand has also adopted a digital-focused framework to resonate with younger consumers, emphasizing personalization and trend-right updates.
The Solution
To address its challenges, Crocs partnered with First Insight in 2017 to integrate customer feedback more effectively into its product development process. First Insight's platform leverages years of data and machine learning to help brands identify winning designs and make informed decisions quickly. During the onboarding process, Crocs established a cross-functional team to align the platform's objectives with its strategic priorities. The platform integrates proposed designs and data, comparing them against past season items to gauge customer preferences. By presenting future products to customers and analyzing their responses, the platform generates product rankings, buy depth forecasts, and price elasticity curves. This data-driven approach enables Crocs to identify hot designs, avoid potential failures, and optimize pricing strategies.
Operational Impact
Quantitative Benefit
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