Retail Analytics E-Book

Emmett Cox

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: SAS Institute Inc
• Sprache: Englisch

Seitenzahl: 272

Veröffentlichungsjahr: 2011

Beschreibung

The inside scoop on boosting sales through spot-on analytics Retailers collect a huge amount of data, but don't know what to do with it. Retail Analytics not only provides a broad understanding of retail, but also shows how to put accumulated data to optimal use. Each chapter covers a different focus of the retail environment, from retail basics and organization structures to common retail database designs. Packed with case studies and examples, this book insightfully reveals how you can begin using your business data as a strategic advantage. * Helps retailers and analysts to use analytics to sell more merchandise * Provides fact-based analytic strategies that can be replicated with the same success the author achieved on a global level * Reveals how retailers can begin using their data as a strategic advantage * Includes examples from many retail departments illustrating successful use of data and analytics Analytics is the wave of the future. Put your data to strategic use with the proven guidance found in Retail Analytics.

Leseprobe

Table of Contents

Cover

Series page

Title page

Copyright page

Preface

Acknowledgments

Chapter 1: Retailing Analytics: An Introduction

RETAILER GOODWILL

THE INSIDE SCOOP: RETAIL POWER BROKERS

RETAIL ORGANIZATION

COMMUNICATING TO THE RETAIL ORGANIZATION

POINT OF SALE VERSUS MARKET BASKET DATA

DATA IS GOLD

DATA AS REVENUE: THE PRICE OF RETAIL DATA

Chapter 2: Retail and Data Analytics

HARD-CORE DATA TERMS: NOW WE’RE TALKING ABOUT THE FUN STUFF

MARKET BASKET

DATA STORAGE 101

DATA WITHOUT USE IS OVERHEAD

CASE STUDIES AND PRACTICAL EXAMPLES OF DATA-RELATED RETAIL PROJECTS

CELEBRITY MARKETING: TRACKING EFFECTIVENESS

HOUSE BRAND VERSUS NAME BRAND

E-BUSINESS: CLICKS AND MORTAR

AFFINITY MERCHANDISING: MERCHANDISE CROSS-SELL CASE STUDY

MARKET BASKET ANALYSIS: EXAMPLES

STORE DEPARTMENTAL CROSS-SELLING

Chapter 3: The Apparel Industry

MANY TYPES OF APPAREL BUSINESSES

RETAILER BUILDING AND LOCATION, LOCATION, LOCATION

WHO IS MY CUSTOMER? SIZE UP THE OPPORTUNITY AND SHOW ME THE MONEY!

EVOLUTION OF A BRAND: NOT YOUR FATHER’S BLUE JEANS

DIVERSIFICATION: SPREAD RISKS OVER MULTIPLE BUSINESSES

CRITICAL, NEED-TO-KNOW INFORMATION IN APPAREL ANALYTICS

RETAIL IN GENERAL: IMPULSE BUYING

Chapter 4: Importance of Geography and Demographics

UNDERSTANDING THE TOOLS AND THE DATA REQUIREMENTS

HOW GEOGRAPHY FITS INTO RETAIL: LOCATION, LOCATION, LOCATION!

NOW THAT WE UNDERSTAND THE TOOL AND THE DATA, WHAT DO WE DO?

MARKET OBSERVATIONS: ADDITIONAL USES OF THE GIS TOOL

Chapter 5: In-Store Marketing and Presentation

UNDERSTANDING THE DIFFERENT STORE DESIGNS

ALL ABOUT PRICING

TYPES AND SIZES: RETAIL STORE STRATEGIES

SHOPPING BY DESIGN: TRAFFIC PATTERNS

IN-STORE MEDIA: ADVERTISING OR JUST DISPLAYS?

ANALYTICS: TRACKING A MOVING TARGET

MARKETING OUTSIDE OF THE STORE

Chapter 6: Store Operations and Retail Data

SETTING UP THE STORE FOR SUCCESS: STRATEGIC USES OF DATA

IN-STORE CAREER PATH: STOCKPERSON TO STORE MANAGER

Chapter 7: Loyalty Marketing

LOYALTY PROGRAMS

TOTAL PROGRAM INCENTIVE: ARE YOU LOYAL?

FROM THE CONSUMER FINANCE CREDIT CARD RETAIL PERSPECTIVE

LOYALTY SEGMENTS: DEVELOP THEM EARLY

LOYALTY AT POS: DIFFERENT STAGES AND LEVELS OF LOYALTY

KMART’S SCHOOL SPIRIT LOYALTY PROGRAM

AUSTRALIAN LOYALTY

FLYBUYS REWARDS AND LOYALTY: AUSTRALIA

ADDITIONAL LOYALTY PROGRAMS

THE RETAIL WORLD IS CHANGING

SOCIAL MEDIA

Glossary

About the Author

Index

Wiley & SAS Business Series

The Wiley and SAS Business Series presents books that help senior-level managers with their critical management decisions.

Titles in the Wiley and SAS Business Series include:

Activity-Based Management for Financial Institutions: Driving Bottom-Line Results by Brent Bahnub

Branded! How Retailers Engage Consumers with Social Media and Mobility by Bernie Brennan and Lori Schafer

Business Analytics for Customer Intelligence by Gert Laursen

Business Analytics for Managers: Taking Business Intelligence beyond Reporting by Gert Laursen and Jesper Thorlund

Business Intelligence Success Factors: Tools for Aligning Your Business in the Global Economy by Olivia Parr Rud

CIO Best Practices: Enabling Strategic Value with Information Technology, Second Edition by Joe Stenzel

Credit Risk Assessment: The New Lending System for Borrowers, Lenders, and Investors by Clark Abrahams and Mingyuan Zhang

Demand-Driven Forecasting: A Structured Approach to Forecasting by Charles Chase

Enterprise Risk Management: A Methodology for Achieving Strategic Objectives by Gregory Monahan

Executive’s Guide to Solvency II by David Buckham, Jason Wahl, and Stuart Rose

Foreign Currency Financial Reporting from Euros to Yen to Yuan: A Guide to Fundamental Concepts and Practical Applications by Robert Rowan

Manufacturing Best Practices: Optimizing Productivity and Product Quality by Bobby Hull

Mastering Organizational Knowledge Flow: How to Make Knowledge Sharing Work by Frank Leistner

Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics by Gary Cokins

Social Network Analysis in Telecommunications by Carlos Andre Reis Pinheiro

The Business Forecasting Deal: Exposing Bad Practices and Providing Practical Solutions by Michael Gilliland

The Data Asset: How Smart Companies Govern Their Data for Business Success by Tony Fisher

The Executive’s Guide to Enterprise Social Media Strategy: How Social Networks Are Radically Transforming Your Business by David Thomas and Mike Barlow

The New Know: Innovation Powered by Analytics by Thornton May

The Value of Business Analytics: Identifying the Path to Profitability by Evan Stubbs

Visual Six Sigma: Making Data Analysis Lean by Ian Cox, Marie A. Gaudard, Philip J. Ramsey, Mia L. Stephens, and Leo Wright

For more information and a complete list of books in this series, please visit www.wiley.com/go/sas.

Copyright © 2012 by Emmett Cox. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Library of Congress Cataloging-in-Publication Data:

Cox, Emmett.

 Retail analytics : the secret weapon / Emmett Cox.

p. cm.—(Wiley & SAS business series)

 Includes index.

 Summary: “Retailers have collected a huge amount of data but they do not know what to do with it. This book is designed not only to provide a broad understanding of retail but show how to use the data that these companies have. Each chapter covers a different focus of the retail environment from retail basics and organization structures to common retail database designs. Numerous cases studies and examples are given throughout. In addition, within each chapter the importance of analytics and data is examined”—Provided by publisher.

 ISBN 978-1-118-09984-1 (hardback); ISBN 978-1-118-14835-8 (ebk);

 ISBN 978-1-118-14832-7; ISBN 978-1-118-14834-1 (ebk)

 1. Retail trade. 2. Retail trade–Statistics. 3. Retail trade–Case studies. I. Title.

 HF5429.C683 2012

 658.8′7–dc23

2011023738

Preface

Through my years in analytics, and particularly in retailing, I have had the great opportunity (and, to some extent, struggle) to work with analysts and businesses from many different countries. As analysts, we try to see problems in black and white, with as little gray area as possible. What may be seen as obvious in one country, however, is a new concept in another. Managing many different analytics teams and projects across these countries became somewhat of a learning and teaching exercise. I was (and happily still am) constantly learning about the different cultural nuances of each country. One such difference comes from the use of prebuilt software. One of my teams was up on all the latest software and felt that this gave them a competitive advantage in developing quick and effective analytic solutions. One specific team in another country felt that many software solutions were nothing more than black boxes, secret systems that could not be replicated, and that they would rather write the code themselves and develop the modeling required so that each solution would be tailored to the client’s needs.

While these differences can be overcome, the majority of my time dealing with global teams was spent explaining what type of analysis I need to get completed. This may sound simple, but when the basic retail terminology was missing, the management task became enormous. With so many young and intelligent MBAs with little firsthand experience in retailing, how do you explain stock-keeping units or package quantities, much less market basket analysis with trade area overlays?

With every country in a different time zone, it was difficult to have everyone on a call at the same time to explain some of the basic retail analytics fundamentals. So, I began my four-year attempt to write down all of the retail analytics information that I had gathered from my 30-year retail career. At the time, I was just hoping to get my teams on an even level with one another with basic terms and concepts, which was totally self-serving, as I wanted to cut back on my 2 A.M. and 3 A.M. conference calls. What I finally ended up with is a book filled with examples of projects and solutions, along with a complete list of terminology that I have used across my broad retail background. I had no idea that this would end up in a book, much less be sought after by acquaintances across the world. I am humbled by this, because this book was a labor of love.

This book is intended to be a reference guide, which should help in developing a better understanding of retailers’ language and analytic process. I have included a glossary of terms that are commonly used by retailers as well as a list of retail-oriented projects. No project can be a failure if you learn from the outcome. Try to be creative in your pursuits to solve business hurdles. Your creativity can be your best asset. Analytics is an art as much as a science and you need to keep balance.

I have included examples of projects and case studies that I have either developed or brought to fruition based on someone else’s request.

I have a deep retail and financial services background, and blend both perspectives in my writing. I also at times strive to keep the credit-card marketing point of view in scope. A predominant theme throughout this book is “This credit stuff is okay, but what does it do for my merchandise sales?” This is a common theme for retailers at all levels. Keep this in mind as you read through each section.

As each project is thought out, discussed, and presented, there has to be either some measurable positive impact to the client’s business, an increase in credit card usage (increased share), or some dramatic increase in the client relationship position (would the retailer recommend you to his peers?). Ideally, we would like to influence all of these factors.

For the best results, refer to the glossary of terms at the end of the book. Understanding these terms will help your ability to use each concept.

Acknowledgments

While this book was a labor of love on my part, it took many people over the years to help me gather the inquisitive analytics spirit to try so many differing retail avenues. I must thank Kmart Corporation as a whole for placing me on the leadership fast track, which meant moving me to a new division every two to three years. I never had a chance to get bored. Over a 27-year career that encompasses many different areas, I began my career pushing buggies and ended up 23 years later managing the complete database marketing for the company. This hands-on experience has been invaluable throughout my career.

I need to single out Tom Lemke, whom I met when he was the vice president of marketing for Kmart. I have had the opportunity to continue working with Tom over the years. Tom has a great mind for seeing the future, and has always pushed me to either prove or disprove his concepts with hard-core analytics. This constant challenge has pushed me to continually try new methods and concepts to validate strategic and business processes.

I wish to thank David Fogarty, the vice president of Global Decision Sciences for GE Money, for his belief that global retail analytics has a place in a large organization. His constant support was very much appreciated.

I also thank Skander Malcolm, the CEO of GE Money for Australia and New Zealand, for his belief that retail analytics could drive sales and profitability for our partners and GE alike. His constant and unwavering belief that I could make a difference in my overseas assignment gave me the confidence I needed. I still follow his advice.

Tom Davenport, although a great author himself, always takes the time to speak with aspiring authors and offer advice. Tom has spent more than his fair share of time convincing me that I should complete this project and set a deadline. I followed his advice, which is one reason this book was finally completed. Tom, thank you for being a great inspiration.

I have to thank my wife, who has had the patience to put up with my frequent trips out of the country and late nights working with my global teams. She has always been a great partner in these efforts. She is always there to remind me that “every great man has a woman telling him what to do.” Who am I to argue this point? She is my best friend and has been for 30 years.

Over my career I have met so many individuals that have helped frame my diverse perspective on business and analytics that I cannot possibly name them all. All I can say is thank you, and hope that I continue to meet more of you.

CHAPTER 1

Retailing Analytics: An Introduction

The purpose of this chapter is to help develop a basic understanding of retail terminology and concepts across a wide variety of backgrounds and experience levels. The one constant factor is that we are all using analytics in some form in the support of our organizations.