“Quote or callout goes here and here. Quote or calloutgoes here and here. Quote or callout goes here and here.”- Frank Nau...
“Quote or callout goes here and here. Quote or calloutTable of Contentsgoes here and here. Quote or callout goes here and ...
“Impulse buying is not really an impulse any longer. Today’sshoppers are making better-informed buying decisions.”- Frank ...
SAS High Performance Revenue OptimizationSuite allows retailers to optimize prices at agranular level down to the store an...
Retailers have to differentiate theirbusiness using service.- Paula Rosenblum, Retail Systems Research               Merch...
We believe retailers are eager to implement the next generationof optimization systems given the strong track record ofopt...
A major U.S. retailer reported a margin basis pointimprovement of 10 to 40 points with highperformance markdown optimizati...
Merchandise planning seeks to suggest the right item,right price and right location. In the high performancearena, this ty...
By tailoring our offering by market, we are able to increase engage-ment with local customers. The enhancements that SAS i...
With the predictive capabilities we have with SAS tappinginto the historical purchasing data of almost every groceryshoppe...
There is almost always something consumers value along-side price. The challenge is to find the right thing — andcommunica...
High Performance Retailing and here. Quote or callout“Quote or callout goes here offers far more dimensions thanever here ...
Today’s retail and CPG partners are realizing the valueof using high performance resources to collaboraterather than compe...
Data is going to change your company, but it must be tiedto the merchandising and marketing teams directly.- Eric Williams...
High Performance Retailing gives individualsthe opportunity to become superstars in theorganization.               The lea...
If business units continue to operate independently,merchants will never truly understand the consumerin the marketplace. ...
The bottom line is that High Performance Retailing putsbetter and faster analytics in the hands of merchants, forbetter in...
About SAS                              SAS helps retailers and grocers spend less time crunching numbers and more         ...
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High Performance Retail SAS e-book

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Learn more about how retail leaders like Kohl’s are winning with high performance retailing

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High Performance Retail SAS e-book

  1. 1. “Quote or callout goes here and here. Quote or calloutgoes here and here. Quote or callout goes here and here.”- Frank Nauta, SAS Ratium cum est volo tem remquiscid es doluptus id quamendit quis exerrov idebiscide vendandia debitatis aperion sequia consequ ossequiaepta ipsa soluptatur accus sequam qui te voloremquo qui ratur? ►► 1
  2. 2. “Quote or callout goes here and here. Quote or calloutTable of Contentsgoes here and here. Quote or callout goes here and here.”- Frank Nauta, SAS High Performance Retail: The Art of the Possible_______________________________________________________ 3 In-Database Analytics _________________________________________________________________________ 4 In-Memory Analytics _________________________________________________________________________ 4 I. Addressing Market Opportunities with High Performance Retailing______________________________________ 6 High Performance Revenue Optimization: Price, Promotion and Markdown_ _____________________________ 6 High Performance Planning: Assortments and Merchandising_ ________________________________________ 8 _ High Performance Analytics: Developing 1:1 Interactions _____________________________________________ 10 II. The Benefits of High Performance Retailing_________________________________________________________ 11 1. Ask and Answer More Innovative Questions______________________________________________________ 12 2. Increase Speed of Analysis _ __________________________________________________________________ 12 _ 3. IT and Business Can Work More Strategically _____________________________________________________ 13 4. Give Real-Time Decision-Making to Retailers Across the Supply Chain _ ________________________________ 13 5. Start Small and Scale Up______________________________________________________________________ 13 6. Tame Big Data______________________________________________________________________________ 13 7. Encourage Better Retailer-CPG Collaboration_ ____________________________________________________ 14 8. Avoid Offer Spam_ __________________________________________________________________________ 14 III. Getting Started with High Performance Retailing____________________________________________________ 14 Eliminating Data Silos___________________________________________________________________________ 16 Conclusion_ _____________________________________________________________________________________ 17 ►► 2
  3. 3. “Impulse buying is not really an impulse any longer. Today’sshoppers are making better-informed buying decisions.”- Frank Nauta, SAS High Performance Retail: 1. Mobilized consumers are accessing up- to-the-minute information in real time. The Art of the Possible 2. Products are advancing rapidly, creating the A perfect storm of factors are need for constant merchandising changes. in constant motion, forming a tidal wave effect on the retail 3. Pricing options are multiplying at an industry. In order to stay on top of unprecedented rate. the changes, merchants need to 4. Competitive pressures are compressing implement the most advanced and product development and marketing intuitive systems. That’s where High timelines. Performance Retailing comes in. “Impulse buying is not really an impulse any longer,” noted High Performance Retailing drives Frank Nauta, Advisory Solutions Architect, SAS Retail and business performance for retailers Consumer Packaged Goods (CPG). “Today’s shoppers are because it includes the best of retail making better-informed buying decisions. They are smarter, domain expertise plus superior more diligent and tighter with money.” And because new analytics, coupled with the latest product styles, versions and models are rapidly entering the high performance computing capabilities. It is more than marketplace, merchants must be wary of the need to stock “feeds and speeds” — it is about helping retailers gain new the newer item and take a loss on the previous version. insights, empowering them to take action and drive business impact — resulting in increased margins, revenue, customer Additionally, as the need grows for more personalized and loyalty and satisfaction. localized pricing, the seemingly endless product pricing Four key events have pushed the retail industry to the edge combinations are making category and brand managers’ of its ability to keep up: heads spin. Those pressures are coupled with the push for quick sell-through — particularly in the fast-moving consumer goods, electronics and apparel segments. ►► 3
  4. 4. SAS High Performance Revenue OptimizationSuite allows retailers to optimize prices at agranular level down to the store and SKU level. SAS HPR can come to the rescue by facilitating success through the combination of three key capabilities: In-Memory Analytics allows the data and analytics to run together simultaneously. In a large department store with Domain Expertise — backed by 36 years of experience with predictive millions of SKUs, this type of analysis took hours in the past analytics and work with the majority of the leading global retailers without In-Memory Analytics. With all the data stored in Advanced Analytics — faster analysis and more detailed, granular results memory, all the technological and analytical tricks to make money and increase wallet share are calculated in real time. High Performance Computing — featuring the powers of Grid Computing, In-Memory Analytics and In-Database Analytics SAS High Performance Retailing addresses some of the hot issues and opportunities in retail: In-Database Analytics moves the decision-making ►► The radical shift in pricing strategies or approaches capabilities closer to all the data. As soon as POS infor- that drives margins, retains customers and builds brand mation is imported, the results are scored inside the identity/equity. database. For example, using past purchase behavior and This shift can be addressed with high performance lifecycle current contents of the basket, the system can better predict price optimization — spanning regular or everyday pricing, an individual shopper’s future behavior and provide more promotion optimization whether in traditional circulars appropriate, personalized offers. With real-time scoring, or new digital promotion vehicles, and optimization of results can be delivered while the shopper is still in the store. markdown of seasonal goods and clearance items. The Previously, the POS data needed to be removed, scored, then SAS High Performance Revenue Optimization Suite allows reinserted — a round-tripping task that took hours instead retailers to optimize prices at a granular level down to the of seconds. store and SKU level while taking cross-effects into account and knowing that price transparency is key. ►► 4
  5. 5. Retailers have to differentiate theirbusiness using service.- Paula Rosenblum, Retail Systems Research Merchants also are able to perform what-if analyses with ►► The goal of delivering a more personalized 1:1 SAS optimization solutions. For example, they can analyze experience with individual shoppers, and expanding and run multiple pricing scenarios on millions/billions of personalized marketing on a global scale. product/location combinations to support markdowns, Retailers who can deliver the right messages and offers to promotions and regular pricing strategies. the right consumers at the rights times increase revenue, ►► The need to execute optimized assortments at margin and customer loyalty. the store/SKU level so that localized, even personalized “Retailers have to differentiate their business using service,” assortments can be delivered to customers in stores and noted Paula Rosenblum, Analyst with Retail Systems online and via smartphone applications and kiosks. Research. "There is almost always something consumers Only retailers that can rapidly adjust to market changes, value alongside price. The challenge is to find the right thing competition and knowledgeable customers, and deliver — and communicate it to the right consumers effectively.” optimized local assortments will grow and endure. Some key questions that can be addressed with high performance assortment optimization include: How do you tailor assortments to relevant aspects of consumer preferences by season or subgroup or merchandise attribute? How do you map assortments to space constraints? How quickly can your team develop and execute new assortment plans — by stores or clusters of stores or for individuals? ►► 5
  6. 6. We believe retailers are eager to implement the next generationof optimization systems given the strong track record ofoptimization technology on their P&L.- Deborah Weinswig, Citi Investment Research & Analysis This E-book will provide detailed insights and information to help guide retailers down the road of With the introduction of high performance versions of the High Performance Retailing, covered in three sections: optimization solutions, retailers can expect results they never dreamed of before. For example, they will be able I. Addressing Market Opportunities with to limit overstocks and out-of-stocks with better pricing High Performance Retailing and markdown strategies; and they can improve results of II. The Benefits of High Performance Retailing promotional strategies by targeting the right customers with III. Getting Started with High Performance Retailing individualized promotions. Leading Wall Street financial analyst Deborah Weinswig, I. Addressing Market Opportunities Managing Director of the retailing team at Citi Investment with High Performance Retailing Research & Analysis, confirms the potential of high performance optimization. "Retailers maximize returns Each component of High Performance Retailing plays a role with optimization technologies," Weinswig noted in a in the bigger picture of overall growth and success within January 2012 report. "Retailers have been investing in a retail or CPG company. While many companies already optimization systems since the early 2000s and have realized have seen positive results from optimization, planning and significant top-line and margin benefits as a result of these analytics, the high performance features bring the meaning investments. Retailers are now looking at the next generation of success to a new level. of these technologies to build on their existing capabilities, including price, promotion, size and marketing optimization. High Performance Revenue Optimization: Technology providers like SAS are at the forefront of this Price, Promotion and Markdown trend. We believe retailers are eager to implement the next The term “optimization” speaks for itself. It obviously is in generation of optimization systems given the strong track the best interest of businesses to optimize their processes. record of optimization technology on their P&L." She called Most leading retailers have taken advantage of some form of this new trend “optimization on steroids” and ranked it as optimization in the past 10 years, realizing positive results. the number-one trend in 2011. ►► 6
  7. 7. A major U.S. retailer reported a margin basis pointimprovement of 10 to 40 points with highperformance markdown optimization. A number of retail companies already are reporting High Performance Retailing Promotion impressive results with the speed and efficiency at which Optimization Gives Stores the information is made available via high performance that ‘Mom-and-Pop’ Feeling optimization. Business users are now able to implement Today’s retailers yearn for the way that Mom-and-Pop store profitable changes using near-real-time data. They are better owners catered to individual customers. High performance able to take advantage of quickly changing trends. Lacking promotion optimization can bring the retail experience this type of decision-making speed, many merchants will risk full circle, providing the opportunity to give customers lost sales today and in the future. individualized offers and promotions when they enter the Some recent results include: Using customer insights to store. Today’s shoppers can walk into a store, swipe their develop individual offers, one leading retail organization loyalty card at a kiosk and receive coupons targeted to them, improved its offer redemption rate by 6%. A major U.S. based on their past purchase history and likelihood to buy retailer reported a margin basis point improvement of 10 to certain products. 40 points with high performance markdown optimization. Additionally, consumers carrying mobile devices can receive An international department store saw revenue jump 3% to personalized offers through opt-in mobile apps or geo- 10%, and a North American supermarket chain saw increased targeting solutions. Again, knowing shoppers’ past purchase unit sales, a margin increase of 2% to 7%, and revenue histories, aligned with their likelihood to purchase certain increases of 3%. products that day, high performance optimization is Previously merchants had to run markdown optimization a win-win for both retailers and the customers. at the regional level, but now it can be accomplished at the Retailers without high performance optimization may store level. While they can still look at weekly data, now they still be waiting until checkout to provide shoppers with also can use daily data to help with promotion optimization, coupons or offers. While that type of offer may help to bring especially during the holidays. They could even conduct shoppers back tomorrow or next week, it doesn’t provide the hourly analysis when it comes to a day like Black Friday. immediate satisfaction of a real-time relevant offer. ►► 7
  8. 8. Merchandise planning seeks to suggest the right item,right price and right location. In the high performancearena, this type of planning can be accomplished moreeffectively and at warp speed. High performance optimization also provides benefits in him an offer for a higher margin item, such as sippy cups. In the eCommerce arena. “We have solutions that watch what the end the shopper receives a more palatable offer and the you are doing online, monitor your mouse movements, retailer makes more money on the higher margin item. your time in the shopping cart, and your clicks on other High Performance Planning: products,” explained Nauta. The solution is continuously Assortments and Merchandising scoring and rescoring shoppers as they move through the site. If a shopper hesitates at any time during the process, or It is important to speak the language of individual stores. abandons the cart, the solution then rescores that shopper in Merchandise planning seeks to suggest the right item, right real time. Based on the retailer’s specifications, that shopper price, and right location. In the high performance arena, this may receive a live chat request or immediate percent-off type of planning can be accomplished more effectively and coupon in order to incent them to purchase. Literally in at warp speed. seconds the solution can decide if that shopper deserves an incentive or should be left to their own devices. Answering the Margin Call Like the movie Moneyball, High Performance Retailing invites its users to ask new questions, said Anthony Volpe, Retail Analytics Advisor, SAS. For example, at the POS, high performance promotion optimization can determine “who I am and what I have bought in the past, then make me an offer.” Before, cart analysis might have told the retailer that the customer is buying diapers and wipes, so give him an offer for baby food. But now, with high performance analysis of past purchase behavior, the system can decide to give ►► 8
  9. 9. By tailoring our offering by market, we are able to increase engage-ment with local customers. The enhancements that SAS is making to itsmerchandise planning product in 2012 will enable our merchantsand planners to develop and execute these customizedassortments more easily.- Bernie Powers, Kohl’s Retailers are now realizing the potential of this type of and combinations. They can look at stores by individual power. "Localizing our assortments is a key growth initiative customers. They can create more localized clusters for Kohls," said Bernie Powers, Kohls Senior Vice President based on SKU. for Merchandise Information. "By tailoring our offering Similarly, merchants must be able to decide which items by market, we are able to increase engagement with local to keep, which ones to drop and which new items to add. customers. The enhancements that SAS is making to its Traditionally, merchants have made these decision based merchandise planning product in 2012 will enable our on revenue, margin and units. But with high performance merchants and planners to develop and execute these planning, they can incorporate customers’ scores into that customized assortments decision, so even if it is not more easily." a best-selling item, but is One of the most highly important to one of the best sought, yet difficult customers in a store, then the to execute, aspects of retailer might want to keep assortment planning is being that item in that store. able to plan at the store level. With High Performance Retailing, retailers can move to true localization. They can review assortments in a matter of seconds in terms of attributes such as colors ►► 9
  10. 10. With the predictive capabilities we have with SAS tappinginto the historical purchasing data of almost every groceryshopper in the U.S., were able to reach the right peoplewith the right messages with more precision thananyone else in the market.- Eric Williams, Catalina Marketing (retired) High Performance Analytics: company. The speed of data did that. We are literally getting Developing 1:1 Interactions all U.S. sales information in five hours and actively using that information to market to consumers the next day.” Catalina Marketing helps its retail clients reach the right customers with the right messages and offers. With high To stay on the cutting edge, Catalina needs to build accurate performance analytics, Catalina is growing faster than ever. models quickly. "I know from experience and discussions "Weve been helping our clients reach the right people with with colleagues in the industry how long it can take to the right messages for 25 years," said Williams. "But with build a predictive model, Wachter noted. "Theyre taking the predictive capabilities we have with SAS tapping into the more than a month to build one model. Using SAS, weve historical purchasing data of almost every grocery shopper in automated the execution of our models and scoring them the U.S., were able to do it with more precision than anyone against our entire 140 million consumer database for the else in the market." implementation of marketing campaigns literally in days." “SAS solutions have allowed us to actually predict what customers are likely to buy and that has revolutionized our ability to make our clients’ coupons and messages relevant to shoppers,” according to a Catalina executive. Using SAS Scoring Accelerator for Netezza, Catalina has reduced its model-scoring times from 4.5 hours to approximately 60 seconds. The change in Catalina’s approach has been pivotal. “At the start, if you bought X you get a coupon for product Y, but that decision was based only on current purchase information,” Williams explained. Catalina actually worked with SAS to help develop the use of historical purchase data. “That whole concept changed Catalina into an unbelievably profitable ►► 10
  11. 11. There is almost always something consumers value along-side price. The challenge is to find the right thing — andcommunicate it to the right consumers effectively.- Paula Rosenblum, Retail Systems Research "Not only that, but our samples are 10 to 15 times larger than anything anyone else is doing today, Williams added. ll. The Benefits of High "Nobody could do what SAS is enabling us to do — the Performance Retailing capabilities just didnt exist beforehand." With High Performance Retailing, merchants now have the horsepower to localize assortments, better allocate High Performance Retailing analytics prevents merchants employees and merchandise, and improve in-store from having to compromise their models. They no longer marketing. need to accept the assumptions; they can be more precise by having better models. Retailers Can Count on Significant Williams used the fast-moving consumer goods industry as Benefits When Implementing an example. “About 20,000 new products hit the door of a High Performance Retailing: retail store on an annual basis,” he explained. “Well over 90% never see the light of day in year two — flavor extensions, 1. Ask and Answer More Innovative Questions and line extensions, packaging changes, for example. With Receive More Precise Answers for Actionable Results high performance analytics, we now have the information 2. Increase Speed of Analysis available to begin to predict what people will want next, 3. IT and Business Can Work More Strategically — rather than just using instinct.” Reducing Tedious, Time-Consuming One-Off Projects A large grocery chain in North America is using SAS 4. Give Real-Time Decision-Making to Retailers grocery analytics to help serve individual customers Across the Supply Chain in individual markets. 5. Start Small and Scale Up With SAS Analytics, the grocer knows key customers and 6. Tame Big Data understands the different types of customer by individual 7. Encourage Better Collaboration Between market. Getting the analytics down to the operations of the Consumer Packaged Goods (CPG) and Retail individual store level is where the real value lies. 8. Avoid Offer Spam ►► 11
  12. 12. High Performance Retailing and here. Quote or callout“Quote or callout goes here offers far more dimensions thanever here and here. Quote or callout goes cross-elasticitiesgoes before. Now companies can calculate here and here.”of demand for SAS- Frank Nauta, thousands and thousands of SKUs in thegrocery store. 1. Ask and Answer More Innovative Questions 2. Increase Speed of Analysis. and Receive More Precise Answers for Actionable Results. With High Performance Retailing, revenue optimization for a large department store, for example, can be completed in High Performance Retailing is really about the uninhibited less than two hours for the entire organization. Executives use of analytics: being able to answer questions that you can generate a daily forecast and facilitate immediate could never answer before because it took too long, and decisions, which was not feasible earlier. Price optimization using uninhibited creativity to better leverage the data can be calculated for an entire organization, in multiple you have. scenarios, in less than four hours vs. waiting days for results previously. High Performance Retailing offers far more dimensions than ever before. Now companies can calculate cross-elasticities Before High Performance Retailing, merchants were forced of demand for thousands and thousands of SKUs in the to run models overnight, put in a change in multiple demand grocery store. Previously, without a hypothesis of a cross- models for different categories, look at them the next day sell of beer and diapers, they could only use and fine-tune intuition to come up with that combination. them. That process Now the technology can calculate elasticities could take up to a and come up with combinations category and week. Now they brand managers never thought of before. can run multiple The winners will be those with the most models in a matter creative groups that ask better questions. This of minutes within completely changes how companies manage the same day. A and run their businesses. process that used to take seven days can be done in one day today. ►► 12
  13. 13. Today’s retail and CPG partners are realizing the valueof using high performance resources to collaboraterather than compete. The end goal is selling more ofthe products customers want. 3. IT and Business Can Work More 5. Start Small and Scale Up. Strategically — Reducing Tedious, Time- Consuming One-Off Projects. By working with a partner that can provide each different component of the business suite, merchants can choose to Business users don’t want to be forced to have to take every start with one component, such as markdown optimization, need to the IT. Retail IT organizations are spread thin and then add promotion optimization later, or they can ramp up face an exploding amount of new needs and technologies. with the full suite of optimization solutions from the start. High Performance Retailing can help both. IT can build a strategic retail analytics foundation. Business users can explore, visualize, hypothesize and test hypotheses and 6. Tame Big Data. put innovative ideas into action — using science to help High Performance Retailing tames big data by getting directly merchants know and engage customers. Merchants can to the nuts and bolts of the problem. “It can boil all the augment the art of retail. questions down to a "yes" or "no" answer, or a score of 1 or zero,” explained Nauta. This becomes particularly significant when examining social media communication. “High 4. Give Real-Time Decision-Making to Performance Retailing digs through all the sentimental noise Retailers Across the Supply Chain. and get likes vs. dislikes, detecting market trends — then you From inventory and assortment decisions to real-time know how to market.” High Performance Retailing allows merchants to dissect social communications in real time — in offers — retailers need rapid, fact-based ways to make the seconds vs. days for real-time insights, or months for figuring best and quickest decisions. Merchants are now competing out a trend. “Now we can detect change in demand based across segments and channels — drug stores and big-box on what people are writing on Facebook,” he explained. “It’s merchants are selling groceries, and shoppers can buy their amazing how much information is generated by the ‘like’ favorite apparel or hard-to-find foods on Amazon. Therefore, button. With that information we can track what they are store managers and associates must be empowered to going to do, their followers, what’s written on their wall.” provide the best service when customers walk into the store. High Performance Retailing enables game-changing decisions and actions. ►► 13
  14. 14. Data is going to change your company, but it must be tiedto the merchandising and marketing teams directly.- Eric Williams, Catalina Marketing (retired) has a memory of previous offers and shoppers’ responses to 7. Encourage Better Collaboration Between those offers, merchants can now send out the right messages Consumer Packaged Goods (CPG) and Retail. at the right time — reinforcing brand loyalty and preventing Today’s retail and CPG partners are realizing the value of customers from jumping to another brand. using high performance resources to collaborate rather than compete. The end goal is selling more of the products III. Getting Started with customers want. By sharing real-time data, retailers and CPG High Performance Retailing companies can stock the right product assortment and make better use of trade promotion dollars. High performance Once a company understands the value High Performance computing can provide more accurate forecasts faster. Retailing will bring to the business, the next step is deciding Globally, many of today’s CPG companies and retailers how to get started. That decision may depend upon the are sharing data and working together to better analyze level of innovation built into the culture of the company. shopping behavior. Many companies don’t have the culture of looking for new insights in place, so they may just ask for faster markdown 8. Avoid Offer Spam. optimization, for example — a cost reduction strategy or process improvement. That kind of company should get High performance computing can help companies avoid started with High Performance Retailing in a concentrated sending target shoppers too many messages, and too many way, focusing on one area like markdown, while thinking of the wrong messages. “The last thing you want to do is about how they might use an environment that gives them inundate your consumer base with multiple communications more power to gain better insights. so that they think they are receiving spam,” noted Eric Williams, Executive Vice President and Chief Information On the other hand, for an innovative company like Target, Officer (recently retired), Catalina Marketing. “You must or a large, innovative CPG company, their teams will want to have a memory of what offer you spit out to me last week have multiple high performance platforms available so they that I said ‘No’ to,” added Nauta. By using a solution that can be creative across the board from day one. ►► 14
  15. 15. High Performance Retailing gives individualsthe opportunity to become superstars in theorganization. The learning curve for High Performance Retailing should Williams shared some insights on misconceptions he believes be quick and easy. It is an exciting time for the members are rampant in the industry. “There is a belief you have of business teams. It is not the type of change that puts to go hire statisticians for this type of analysis,” he noted. people’s jobs at risk. It gives individuals the opportunity to “That’s false.” Secondly, he noted, organizations must become superstars in the organization. If they find the right eliminate the idea that the analytics team should report to insights — such as realizing a customer is highly sensitive IT or Operations. “I have cautioned everyone — don’t do to the front page of the weekly either. Data is going to change circular, and there are 1,300 other your company but it must be customers just like them — that tied to the merchandising and insight would be a big win. marketing teams directly.” Because High Performance Retailing For example, when kicking analysis can be completed so off a loyalty program, the quickly, ideas can be tested easily marketing team should work and often without the risk of with the finance team to analyze damaging the business or bringing customer credit card data. IT to its knees. For example, High Typically credit card operations Performance Retailing analysis can are completely separate from uncover cross-sell items that are marketing. “It is a great way to not necessarily intuitive. This opens understand your customer base up a whole new set of ideas and before launching a major loyalty potential for creating new ideas — it program,” said Williams. is a different way of talking about high performance. ►► 15
  16. 16. If business units continue to operate independently,merchants will never truly understand the consumerin the marketplace. Eliminating Data Silos across merchandising, supply chain and store operations, for example. This leading grocer is empowered to make Most importantly, companies need to eliminate the better decisions at store level. They engage their customers, silos where they store some data for sales, other for and grow and retain customers over the long haul. Science merchandising, and more for promotions/planning. If these powers their company goal of delighting customers. business units continue to operate independently, merchants By keeping customers at the center, at their focus, this will never truly understand the consumer in the marketplace. organization continues to succeed. A major grocery chain in North America has embraced this concept throughout the chain, which serves customers with a wide range of regional differences and brand strategies. This organization makes sure their pricing and promotion optimization engines are linked with their shopper insight foundation. Rather than looking at the science of price optimization in isolation, this leading retailer can make strategic, holistic and more informed pricing decisions for their valued customers in a wide range of markets. Additionally, this retailer uses SAS as a strategic provider for integrated retail analytics. Their customer and other data is all collected and analyzed in one location and this company has a holistic view throughout the operation — ►► 16
  17. 17. The bottom line is that High Performance Retailing putsbetter and faster analytics in the hands of merchants, forbetter insights and speed to market. Conclusion In today’s fast-changing retail environment, retail and The combination of SAS domain expertise, high performance CPG companies must react just as quickly in order to stay computing capabilities and analytics’ experience creates competitive. While optimization, planning and analytics have the new realm of High Performance Retailing. With High been important components of the retail equation, they Performance Retailing, merchants can collect, analyze become significantly more powerful when fueled by high and make decisions in warp speed, in the “retail moment performance computing. of truth” — as consumers are standing in the aisle, are at their online shopping carts checking out, or are conducting product research online. The highly advanced High Performance Retailing solutions recommend new cross- sell and upsell combinations that intuition alone could not match. And, by effectively analyzing all offers across all channels, High Performance Retailing can help companies avoid shopper offer fatigue — saving current and future sales. The bottom line is that High Performance Retailing puts better and faster analytics in the hands of merchants, for better insights and speed to market. Without it, retail companies will pay the cost of not reacting fast enough in today’s environment. ►► 17
  18. 18. About SAS SAS helps retailers and grocers spend less time crunching numbers and more time growing revenue with key technologies customized for today’s multichannelWorld Headquarters merchants. Built around a powerful core of market-leading business analytics, ourSAS Institute Inc. comprehensive suite of retail solutions tackles the industry’s greatest challenges,100 SAS Campus DriveCary, NC 27513-2414, USA including customer insight (customer intelligence and social media analytics); priceP: 919.677.8000 optimization (regular, promotion and markdown); size optimization (size profiling andF: 919.677.4444 pack optimization); assortment planning; integrated merchandise planning (allocation, space management and optimization); forecasting (across the enterprise and across market segments); and loss prevention. With more than 35 years of experience working with leading grocers and retailers, SAS helps retailers make better decisions faster. Learn more at www.sas.com/retail. About Retail TouchPoints411 State Route 17 SouthSuite 410 Retail TouchPoints is an online publishing network for retail executives, with contentHasbrouck Heights, NJ 07604 focused on optimizing the customer experience across all channels. Tapping into theP: 201.257.8528 power of the Web 2.0 environment, the Retail TouchPoints network is made up ofF: 201.426.0181 a weekly e-newsletter, category-specific blogs, twice monthly Special Reports, web seminars, benchmark research, virtual events, and a content-rich web site at www.retailtouchpoints.com. ►► 18

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