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Case Studies > rue21 Uses University of Liverpool’s Action Learning Methodology To Drive Growth and Usage of First Insight

rue21 Uses University of Liverpool’s Action Learning Methodology To Drive Growth and Usage of First Insight

Technology Category
  • Analytics & Modeling - Predictive Analytics
  • Functional Applications - Inventory Management Systems
Applicable Industries
  • Retail
Applicable Functions
  • Product Research & Development
  • Sales & Marketing
  • Warehouse & Inventory Management
Use Cases
  • Inventory Management
Services
  • Software Design & Engineering Services
  • System Integration
  • Training
The Challenge
rue21 was in the middle of a turnaround after emerging from bankruptcy and needed to improve business performance quickly. Traditional product testing took six to nine months and was very expensive, with a high percentage of new products failing to meet success criteria. This led to significant delays and gaps in understanding customer preferences. The merchant team was hesitant to integrate new technology into their processes, adding to the challenge.
About The Customer
rue21 is a fashion retailer that targets young adults with affordable, trendy clothing and accessories. The company had recently emerged from bankruptcy and was in the midst of a turnaround. rue21 needed to quickly improve its business performance and better understand its customer base. The company faced challenges with traditional product testing methods, which were time-consuming and costly, often resulting in failed products. The merchant team was also resistant to adopting new technologies, making it difficult to implement changes.
The Solution
In March 2018, rue21 started working with First Insight to implement consumer-driven predictive analytics into their design, buying, planning, and pricing decisions. Mark Chrystal, Chief Analytics Officer at rue21, introduced the technology through Action Learning, a methodology he learned at the University of Liverpool. Action Learning is an experience-based and action-oriented approach to adult learning, often used to enhance collaborative capacity in organizations. Chrystal engaged a volunteer to run the initial test on First Insight’s InsightSuite platform, which uses online social engagement tools to gather real-time preference, pricing, and sentiment data on potential product offerings. The data is filtered through predictive analytic models to determine which products present the greatest opportunity. The results are available within 24 to 72 hours, allowing the team to make informed decisions quickly.
Operational Impact
  • The implementation of First Insight’s technology and Action Learning methodology led to quicker adoption by the merchant team.
  • The team was able to gather real-time customer feedback within two days, significantly reducing the product testing cycle.
  • The organization gained a better understanding of its customer base, enabling more accurate product and pricing decisions.
Quantitative Benefit
  • Reduced product testing cycle from six to nine months to 24 to 72 hours.
  • Shrunk supply chain lead time from 270-300 days to 90-120 days.
  • Improved back-to-school sales and gross margins by several percent in 2018.

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