Data, Strategy & Consulting
incremental Average Transaction Value
This international Building Trade retailer was looking to understand the potential for incremental value from providing a loyalty reward card. However they had no pre-existing view on individual customer profiles, shopping habits and category profiles. They asked Beyond Analysis to help build an understanding of their customer base and their potential to influence sales growth.
What We Did
Beyond Analysis undertook a detailed basket and product analysis to initially identify customers by business sector and size of company. This also enabled us to isolate out a large tranche of domestic DIY purchases from the parent brand that were simply using the trade counters in store. Six significant trade segments were identified with distinctive product requirements, loyalty and shopping habits. Using these segments we were able to build a set of performance metrics and from this detailed scenarios and business plans for various reward strategies and outcomes.
With the segments as the base, we were able to implement a trial program that focused on giving the segments the right price, range and availability on the core items specific to their sector profile. This was achieved through targeted offer delivery via the program communications and at till. This immediately proved very popular, in particular with the smaller trade businesses who were previously shopping around for core project stock such as copper pipe or cement and then buying the extras at the same outlet. By flexing the price of core products, which were already low margin, the client saw increased basket volume of higher margin related products and overall profitability increases. Healthy increases in ATV of between £2.70 and £8 drove significant business growth. The programme has evolved to become one of the largest trade discount schemes.
Beyond Analysis have worked with our team to help us understand how to meet the needs of – and adapt to – changes in our customer base in the most profitable way. The work that they have delivered has helped to inform strategies across our key retail levers. We have found them responsive, supportive, flexible with a good understanding of how to land insight in an organisation.
Director of Propositions & Insights