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APT Illuminate – Housewares Promotion
Technology Category
- Analytics & Modeling - Data Mining
- Analytics & Modeling - Predictive Analytics
- Analytics & Modeling - Real Time Analytics
Applicable Industries
- Retail
Applicable Functions
- Business Operation
- Sales & Marketing
Use Cases
- Predictive Replenishment
Services
- Data Science Services
- System Integration
The Challenge
A leading US retailer wanted to understand the effectiveness of its promotions by department over the past year. Specifically, the retailer wanted to evaluate its housewares promotional strategy and sought to understand key questions, including: 1. Which categories were the most effective when promoted? 2. Within the highest-performing categories, which promotions were the most effective? 3. Where should they focus within the best housewares categories? 4. Where are there missed opportunities within housewares?
About The Customer
The customer is a leading US retailer with a significant presence in the market. They have a diverse range of products across various departments, including housewares, auto, toys, and electronics. The retailer is known for its extensive promotional strategies aimed at driving sales and customer engagement. With a large customer base and numerous stores nationwide, the retailer continuously seeks to optimize its promotional efforts to maximize sales and profitability. The retailer's commitment to understanding and improving its promotional strategies highlights its focus on data-driven decision-making and operational excellence.
The Solution
The retailer leveraged APT Illuminate to conduct a deep dive into promotional effectiveness for their housewares department. The software revealed that bedding and cleaning delivered the greatest sales lifts from promotions, but there was limited impact across other, lower-performing housewares categories. In evaluating subcategory performance, the software revealed that four bedding subcategories should not be promoted, as they did not have a significant impact on sales. On the other hand, there were opportunities to promote certain top performers more frequently to drive an even greater sales impact. Breaking out the results by brand showed an opportunity to feature Brand B and C promotions more consistently. The retailer used these findings to revise its housewares promotional strategy. Specifically, the retailer increased space devoted to bedding, cleaning, bath, and cookware, instantly driving incremental sales. Also, the retailer replaced some of its housewares promotions with ones for auto, toys, and electronics, increasing sales by $2.5 million. Finally, optimizing the housewares items promoted by featuring top-performing subcategories and brands created an incremental $1.5 million in sales.
Operational Impact
Quantitative Benefit
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