Analytic Applications
€6m
margin increase
Situation
This retail client recognised that one of the greatest drivers of margin was the successful addition of product attachments in the customers basket. It also knew that customers getting home without the right products to complete their project was one of the greatest source of their frustrations. They wanted to solve for how to identify the right product attachments and know the biggest financial opportunities to increase product attachment rates.
What We Did
We used basket data to identify all the possible product attachments across the entire store categories. These were then sized by rate of sale, volume and potential margin gain through increasing attachment rates to create a prioritised opportunity list. This was developed into a weekly report that the commercial teams could use to support space planning and promotions. A subset of these attachments were then identified for weekly in-store tracking by individual departmental teams as party of a company wide leader-board initiative.
Outcome
The results from this engagement were realised almost immediately in terms of increased staff engagement as the focus on a limited range of attachments each week drove strong internal competition among neighbouring stores. Over time the NPS results showed increase customer satisfaction scores with in store assistance being a key driver. Financially increased margin tracking was at circa €6 million incremental per annum across all stores.