How a Leading Electronics Retailer Uncovered New Cross-Merchandising Opportunities Using Quantzig’s Merchandising Analytics Solutions – A Success Story

Jul 15, 2019

The client is a leading electronics retailer based out of Santiago and the fastest-growing company in the sector with several retail outlets spread across South America.

 The Business Challenge

In today’s digitally connected world, customers can research competitive offerings while standing in a store aisle. Moreover, while the customers are less likely to remain loyal towards a brand, the probability of them sharing their experience on social platforms is at an all-time high. In such a situation, where retailers are likely to witness a sharp decline in profit margins, it’s crucial to relook and redesigns their strategy to improve their in-store merchandising strategies to enhance customer engagement. To do so, retailers are now focusing on adopting a customer-centric approach by leveraging retail merchandising analytics to drive customer loyalty and eventually more footfall and sales.

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Having spent considerable resources and marketing dollars on online channels, the electronics retailer client was looking at improving the return on customer acquisition cost. They wanted to overcome the restraints that hamstring the traditional business models and sought to transform into a digitally focused, analytics-driven organization. However, to do so they required an analytics-based retail guidance system which could help them break data silos and gain a deeper understanding of cross-department data sets. Only then could the company profitably grow the business, with a special focus on e-commerce platforms. Moreover, the client sought to create more efficient and lucrative pathways to decisive, profit-driven actions.

Solution Offered and Value Delivered

The electronics retailer approached Quantzig to leverage its merchandising analytics expertise to implement a turnkey solution that would help them identify data-backed opportunities to redesign business processes and assortment planning in order to improve their digital visibility. Our merchandising analytics experts adopted a comprehensive two-step approach that helped the client to identify and capitalize on previously uncovered cross-merchandising opportunities to increase multichannel profitability and expand the global customer base.

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Phase 1

During the first phase of this merchandising analytics engagement, our experts worked closely with the client to better understand their business structure, their goals, and challenges. Following which we worked towards establishing their key performance drivers to ensure our recommendations helped them deliver wider conversion rate improvements.

Phase 2

The second phase of this merchandising analytics engagement revolved around root cause analysis to benchmark the performance of their retail outlets to understand strengths and weaknesses around the catchment area, store positioning, branding, competitor activity, and offerings.

The retail merchandising analytics solutions not only helped them align their merchandising decisions with customer expectations and business goals but also enabled the client to optimize merchandise performance by offering in-depth insights into sales, stock trends, and warehouse operations. Moreover, the use of a merchandising analytics model offered detailed, granular insights into customer purchase patterns, paving the way for the client to identify new opportunities and make necessary changes to increase sales.

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