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Case Studies > Using Analytics to Create a Performance Culture and Climb to the Top

Using Analytics to Create a Performance Culture and Climb to the Top

Technology Category
  • Analytics & Modeling - Predictive Analytics
  • Application Infrastructure & Middleware - Data Visualization
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries
  • Retail
Applicable Functions
  • Business Operation
  • Sales & Marketing
Use Cases
  • Retail Store Automation
Services
  • System Integration
  • Training
The Challenge
Having experienced rapid growth of its business, Snow Peak recognized its retail operations were highly fragmented, with store managers provided a broad authority over store layouts and operations. Additionally, the organizational culture was not adequately rooted in performance and accountability as there were limited data points -POS data, the number of new customers acquired and a manual tracking of the number of shoppers per day -to measure store performance. In order to keep its attention keenly focused on providing the finest products and services to its discerning clientele, Snow Peak committed to establishing baseline retail operations metrics and creating and empowering an organizational culture based on performance, accountability and continuous improvement.
About The Customer
Founded in 1958 in Sanjo City, in the Chūetsu region of Japan’s Niigata Prefecture, Snow Peak is an innovator of outdoor apparel and gear, whose very name originates from the famous mountain Tanigawa, where Snow Peak’s founder Yukio Yamai repeatedly challenged himself, physically and mentally, throughout his early life. Those personal experiences drove Yamai to create innovative mountaineering equipment utilizing the region’s highly skilled metal technology. Over time, Snow Peak evolved by shifting its focus from the mountaineering equipment of its past to the camping equipment of its future, releasing a series of radically innovative products focused on quality, functionality, timeless-durability and considered design. Today, Snow Peak’s mission is to ‘restore humanity’ in our increasingly digitized world by connecting people with nature and other people by providing goods and services that enable an outdoor lifestyle.
The Solution
Snow Peak approached its efforts with a three-stage implementation plan: Stage one: Design and implement a fundamental baseline for store operations and performance. Stage two: Rollout baseline and identify organizational best practices. Stage three: Identify and capitalize on continuous improvement opportunities. Snow Peak utilized RetailNext in-store analytics to design its key performance indicators (KPIs) and implement its system across its company-owned stores, with critical KPIs including capture rate (percent of store passersby who enter the store), conversion (percentage of store shopper traffic who completed a purchase transaction) and the efficiency of staff scheduling. With metric-based systems in place at all retail locations, Snow Peak then conducted extensive training for managers and sales associates, including processes and systems, change management, and product and portfolio training. Furthermore, Snow Peak instituted monthly and quarterly reviews with RetailNext consultants to reinforce learning and develop data-based insights for performance feedback loops. Now in its continuous improvement stage, Snow Peak is further fostering its self-sustaining retail performance culture with KPI-based reviews, including store manager reviews, customer engagement reviews and staff coaching, utilizing analytic outputs like kinetic heat maps to judge the engagement effectiveness of store layouts and merchandising displays, and traffic reviews to identify the factors influencing shopper traffic to stores.
Operational Impact
  • Snow Peak recognized an 8.2 percent increase in overall total shopper traffic, with top improving stores realizing a 26 percent increase.
  • There was a 13 percent increase in overall conversion, with top improving stores maintaining a 32 percent increase.
  • The average transaction value (ATV) increased by 2.6, with top improving stores achieving a 27 percent increase.
Quantitative Benefit
  • 8.2 percent increase in overall total shopper traffic.
  • 26 percent increase in shopper traffic for top improving stores.
  • 13 percent increase in overall conversion.

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