Comeos Blend360 Retail Value from Data Content v05.pdf

Confidential & Proprietary
January 2023
Data driven retail for profit
The time is now!!!

Your Speakers for today
Lucien van der Hoeven
VP Business Development EMEA
+31 6 50668010
Lucien.vanderHoeven@blend360.com
Kristof Delhez
Innovation Manager Comeos
+32 2 788 05 86
Kristof.Delhez@comeos.be
Dirk Vanderveken
CEO ShopperWare
+32 4 7010 2517
Dirk.Vanderveken@shopperware.be

Blend360 at a Glance
Some of the Clients Blend360 People Worked With

Blend360 at a Glance
Every single client will give you a positive reference
NET PROMOTER SCORES
-20 0 30 70 100
AVERAGE (0-30) GOOD (30-70) EXCELLENT (70-100)
79
34
24
Agency
Average
Mgmt Consulting
Average
Exceptional
Results
Founded
in 2002
400+
Employees
11 Offices across
USA, EMEA & India
Healthy &
Growing

This workshop objectives: you get pragmatic around…
Why data driven
retail is crucial to
survive now!
How to leverage
data to drive value,
profit and growth
Knowing the most
important success
and fail factors
How to organize,
to get going and
to get better

Agenda for today
Data Driven Retail Now!
Capture the Value
Real Life Practical Examples
Intro and Welcome
Getting Organized
Activation is Key
Success Factors - Q&A - Discussion

Data Driven
Retail Now!

Key Retail Challenges 2023 Belgium | consumer demand
Consumer purchase power is down which impacts negatively consumer
demand for fast moving and durable consumer goods.
Food and drinks in volume -4%
in value 2%
Durables in volume between - 8 to -16%
Home improvement
Kitchen
Fashion
Interior & decoration
Implication | Downtrading
and decreased consumer demand.

Key Retail Challenges 2023 Belgium | cost increase
Important increase of the cost of goods , the cost of services, energy and of salaries.

The big bang
Booming online sales for stock-up categories at
phygital retailers but also at pure online shops.
Disruption
from new retail
business models
Key Retail Challenges 2023 Belgium | new retail business
models

STAGNATING OR DECREASING
SALES + COST INFLATION =
DECREASE PROFITABILITY
How to increase or maintain retailers’ profitability :
Use smart analytics to increase the effectivity of the business
processes and the sales marketing mix. Change and optimize
the allocation of budgets and/or reduce costs without loss of
turnover.

Live Poll – Your Top 3 Challenges

Flying a Boeing787 without the instruments?
Flying a Boeing747 on experience only?

Data Driven Retail in Practice: an Art and a Science
1.
Start from
the Business
2.
Art &
Science
3.
Hypothesis
& Validate
4.
Test &
Learn
5.
Benchmark
Yourself

Sample Business Driver Analytics
Breakdown the Drivers of € 105M YoY Growth in Value Sales
1843
1948
244
119
105
97
65
50
197
168
94
71
45
1.700
1.800
1.900
2.000
2.100
2.200
2.300
2.400
2.500
2.600
FY 2020 Promotions Marketing Store
openings
Assortment On-line CRM COVID19 Price levels Store Service
levels
Economy Competitive
Pressure
FY 2021
Total
Value
Sales
Drivers of Change in total Value Sales
[client x] - FY2020 to FY2021

Capture
the value
for growth

SHORT TERM METRICS:
PENETRATION
FREQUENCY
VOLUME PER TRIP
SHARE OF
REQUIREMENT
BASE SALES
MARKET SHARE
CUSTOMER LIFETIME
VALUE
MINDSET METRICS:
DIFFERENTIATION
RELEVANCE
ESTEEM
BRAND FAMILIARITY
BRAND RELATED:
SALIENCE
AWARENESS
PRICE SENSITIVITY
WILLINGNESS TO PAY
WHAT CONSUMERS DO
WHAT CONSUMERS FEEL AND THINK
SHORT
TERM
LONG
TERM
WHAT RETAILERS DO
HOW RETAILERS MEASURE AND STEER
SHORT
TERM
LONG
TERM
ADVERTISING
Effective driver mix differs by market and brand maturity levels.
What consumers do differs from how retailers drive growth ST and LT
INNOVATION
SALES VALUE/VOLUME
MARKET SHARE
PRICE/PROMO
MARGIN
ASSORTMENT

Sample
Retailer
Sales
Fashion
sales
Food
sales
Living
sales
#Shoppers
#New Shoppers
Target Population
% Penetration
#Churned Shoppers ✖ % Churn
Avg.
Sales/Shopper
Avg. basket Size
Promo
No Promo
#Shopping Trips
Etcetera
Sales Breakdown Model – Adding consumer based KPIs

Retail Analytics Value Map
Integrated business driver analysis 5 to 10% more top-line growth
Online presence/channels analysis 20 to 30% more efficient channel budget
Store location analysis 15% more effective store openings
Marketing mix optimization Marketing effectiveness +15% to 25%
Promotion analysis and optimization Promotion effectiveness +10 to 15%
Assortment analysis and optimization 20% less assortment cost, less OOS
Customer segmentation / CLV +10 to 20% high value customer acquisition
Customer journey analysis & design 10 to 20% bigger baskets
Trade marketing optimization 5 to 10% better deals with manufacturers
Retail media analysis 1 to 2 % additional income stream from media
Demand forecasting 30% less OOS, 15% staffing efficiency
Seasonality and trends anticipation 10% to 20% more seasonality conversion
Stock and inventory optimization 15 to 20% better working capital
Markdown analysis and optimization 25% less mark down losses
Perishables waste analysis 10% - 25% less product waste / shrinkage
Warehouse optimization 10 to 20% better working capital, less OOS
Supplier terms optimization 10 to 20% better working capital
Supplier risk analysis 10 to 15% less bad deliveries
Strategic Area Value Levers Business Benefit
Strategic
Understanding
Commercial
Excellence
Operational
Excellence
Financial
Excellence
Analytics solutions
Grow long term market share
Match distribution to demand
Marketing and promotion
Balanced assortment and pricing
Omni-Channel activation
Customer loyalty
Supplier engagement
Distribution efficiency
Reduced returns (online!)
Store operations
Cash flow efficiency
Supplier risk avoidance

Simplified Business Case in Detail – Marketing Mix Example

Live Poll – I Would Love To Do That

Real life
examples

TikTok (more “responsive”)
€7.5M increase in sales from a
€0.5M increase in TikTok spend
TV (less “responsive”)
= Current spend level
= Optimal spend level
Marketing spend
Incremental
sales
€2.5M decrease in sales from a
€0.5M decrease in TV spend
TV spend - € 0.5M
TikTok spend + € 0.5M
Result:
Sales + € 5.0M
More sales with same
marketing spend
MMM helps to find the optimal incremental sales opportunity

Paid Search
38%
TV
31%
Newspaper
9%
Online Display
7%
Social Media
6%
Outdoor
4%
Radio
3%
Price Comparison
1%
Email
1%
Sample MMM deliverable - impact
Marketing Spend: € 8 mio optimized = extra € 4.4 mio in P&L
Paid Search
25%
TV
37%
Newspaper
9%
Online Display
4%
Social Media
17%
Outdoor
1%
Radio
5%
Price Comparison
1%
Email
1%
€ 8 mio marketing spend
€ 36,4 mio in P&L
ROI=355%
€ 8 mio marketing spend
€ 40,9 mio in P&L
ROI=411%

Sample MMM deliverable - impact
Same Spend: 16% better performance = extra € 4.4 mio in P&L
Marketing
channel
Base
spend P&L impact ROI
P&L
Δ 100K MROI Action
Optimized
spend
New
P&L impact
New
ROI
Spend
Change
Paid Search € 3,040 € 12,200 301% € 55 -45% down € 2,000 € 10,000 400% -34%
TV € 2,473 € 11,750 375% € 475 350% up € 3,000 € 13,800 360% 21%
Newspaper € 684 € 2,750 302% € 405 275% keep € 700 € 2,730 290% 2%
Online Display € 553 € 1,875 239% € 195 95% down € 350 € 1,400 300% -37%
Social Media € 524 € 4,211 704% € 630 530% up € 1,350 € 9,450 600% 158%
Outdoor € 305 € 900 195% € 98 -2% down € 100 € 300 200% -67%
Radio € 247 € 1,254 407% € 505 405% up € 375 € 1,838 390% 52%
Price Compare € 102 € 295 190% € 104 4% down € 50 € 150 200% -51%
Email € 73 € 1,164 1500% € - - none € 75 € 1,200 1500% 3%
Total € 8,000 € 36,399 355% € 8,000 € 40,868 411% 0%

Simplified Promo Price Optimization Example
-200
-
200
400
600
800
1.000
1.200
€ 100
€ 110
€ 120
€ 130
€ 140
€ 150
€ 160
€ 170
€ 180
€ 190
€ 200
Weekly
Units
Sold
Promo Price
Demand
€ 15.000 € 14.630 € 14.760
€ 19.040
€ 29.920
€ 41.550
€ 56.980
€ 76.960
€ 100.440
€ 108.570
€ 6.375 € 5.775 € 5.330 € 6.160
€ 8.415 € 9.695 € 10.175 € 8.880
€ 4.185
-€ 4.935
-€ 20.000
€ -
€ 20.000
€ 40.000
€ 60.000
€ 80.000
€ 100.000
€ 120.000
Sales
&
Gross
Profit
Total Sales
Gross Profit
Breakeven

CLOSE
DELETE ALL
VALUE SALES ▲ 3.1% YoY
€ 1.023 M
Previous period: € 993 M
UNIT SALES ▼ 2.4% YoY
425 M
Previous period: 435 M
Total Sleep4U – MAT H2 2021
BASELINE SALES ▲ 1.1% YoY
€ 811 M
AVG UNIT PRICE ▼ 1.4% YoY
€ 2,41
Previous period: € 2,44
PROMO INCR SALES ▲ 7.5% YoY
€ 212 M
GROSS MARGIN ▲ 1.5% YoY
23,2 %
Previous period: 22,8 %
Select Category
Boxsprings
Matrassen
Bedden
Bedbodems
Beddengoed
Accessoires
Select Market
All
Belgium
Netherlands
Promo Home
Total Sleep4U
Top performers
WeeklyReports
Promo models
Promo calendar
Competition
Category hierarchy
Customer Segments
Insights
Analytics
Help
Sleep
4U

Top Performers – MAT H2 2021
Year Week Market Category Promo Type Promo Descr
Media
support Base Sales Incr Sales Uplift
Promo
volume
# of items
on offer
# of promo
tansactions
avg item
price
avg basket
size excl
% cherry
pick
2021 49 NL Boxsprings Display only 3 halen 2 betalen TV, Flyer € 820.320 € 256.828 32% 17432 14 547 € 15,21 € 455 9%
2021 49 NL Matrassen Laagste prijs 25% korting In store € 519.082 € 1.193.889 230% 4006 11 1214 € 427,58 € 731 9%
2021 49 NL Boxsprings 15% extra Altijd de laagste prijs € 591.826 € 804.883 136% 5206 3 2206 268,28 € 601 13%
2021 49 NL Matrassen 15% extra 25% korting In store € 169.305 € 93.117 55% 679 6 438 386,54 € 1.542 4%
2021 49 NL Acessoires 50% korting Altijd de laagste prijs € 60.257 € 45.192 75% 2181 5 1246 48,36 € 454 10%
2021 49 B Boxsprings 1 + 1 gratis 50% korting TV, Flyer € 929.708 € 1.087.758 117% 4553 6 2098 443,14 € 1.965 4%
2021 49 B Beddengoed 3 = 2 3 halen 2 betalen € 293.483 € 35.218 12% 1755 3 1567 187,29 € 1.910 15%
2021 49 B Beddengoed Geen BTW Korting op korting TV, Flyer € 101.941 € 64.223 63% 1229 4 754 135,2 € 754 7%
2021 49 B Acessoires Display only 40% korting Flyer € 66.950 € 89.043 133% 657 6 282 237,41 € 811 15%
2021 49 B Bedden 1 + 1 gratis Flyer € 196.227 € 361.057 184% 5507 8 1939 101,2 € 404 6%
2021 50 NL Boxsprings Gratis bezorgd 1 + 1 gratis Flyer € 681.425 € 1.778.520 261% 4419 7 1224 556,72 € 142 14%
2021 50 NL Beddengoed Gratis bezorgd Geen bezorgkosten Flyer € 36.240 € 79.728 220% 1450 10 453 80 € 536 15%
2021 50 NL Boxsprings Gratis bezorgd 25% korting Flyer € 641.098 € 1.737.376 271% 5161 3 1391 460,89 € 792 2%
2021 50 NL Boxsprings Geen BTW Gratis dekbedden bij ni Flyer,Radi € 248.972 € 248.972 100% 636 11 318 782,93 € 1.137 15%
2021 50 NL Boxsprings Display only 25% korting € 1.383.852 € 2.297.195 166% 6355 11 2389 579,26 € 1.459 6%
2021 50 B Beddengoed 40% korting Altijd de laagste prijs € 515.317 € 365.875 71% 2090 13 1222 421,7 € 751 12%
2021 50 B Bedbodems Gratis dekbed 3 halen 2 betalen € 1.637.230 € 1.113.316 68% 3856 5 2295 713,39 € 892 2%
2021 50 B Matrassen Display only € 133.630 € 388.865 291% 7222 10 1847 72,35 € 955 9%
2021 50 B Matrassen 1 + 1 gratis 40% korting € 257.147 € 303.434 118% 3547 13 1627 158,05 € 1.159 9%
2021 51 NL Beddengoed Gratis bezorgd Altijd de laagste prijs TV, Flyer € 1.503.559 € 2.360.588 157% 6356 10 2473 607,99 € 1.528 15%
2021 51 NL Bedbodems 25% korting Geen bezorgkosten € 46.616 € 120.270 258% 2098 9 586 79,55 € 311 13%
2021 51 NL Acessoires Gratis dekbed December geen BTW TV, Flyer € 210.688 € 598.353 284% 6520 5 1698 € 124,08 € 544 14%
2021 51 NL Bedbodems 15% extra 25% korting € 1.296.006 € 129.601 10% 1783 10 1621 799,51 € 1.659 5%
2021 52 NL Acessoires 3 = 2 Korting op korting TV, Flyer € 261.776 € 204.185 78% 630 9 354 739,48 € 116 3%
2021 52 NL Matrassen 15% korting 50% korting € 701.904 € 1.031.799 147% 3688 5 1493 470,13 € 1.831 4%
2021 52 NL Acessoires 3 = 2 Korting op korting TV, Flyer € 92.836 € 226.519 244% 1342 14 390 € 238,04 € 1.167 7%
2021 52 NL Acessoires Gratis dekbed December geen BTW € 589.945 € 1.634.148 277% 7054 7 1871 315,31 € 85 4%
Select Category
Boxsprings
Matrassen
Bedden
Bedbodems
Beddengoed
Accessoires
Select Market
All
Belgium
Netherlands
Promo Home
Total Sleep4U
Top performers
WeeklyReports
Promo models
Promo calendar
Competition
Category hierarchy
Customer Segments
Insights
Analytics
Help
Sleep
4U

Add 15 seconds call to action for TV/Video
Increase GRPS on high MROI channels
Launch 3 weeks before competitive campaigns
Focus on front-load
Don’t go higher than 25% for this category
Optimal balance is at lower discount level
Online promo optimum differs from in-store
Combined Marketing & Promo Example - 1.5 mio P&L impact
Based on our marketing & promo models and learnings, there is an € 1,5 mio P&L opportunity
35
Change/Stick to 25% discount 248
Timing
Current Plan (Margin)
208
Optimal Investment Level
69
Campaign Type
Change from €200 to €150 discount
13.879
208
75
694
New Plan (Margin)
Pacing
Online only – go to 40% discount
15.416
+11%
Size of the prize Feasibility Comment
Media
optimum
Promo
optimum

Getting
Organized

The road towards competing on analytics
Business Analytics Maturity Levels
Data used for insights and
operational focus
Use analytics to improve
one or more functional activities
Use integrated data/analytics to
improve specific capabilities
Every key decision supported
by broad analytic capabilities
Use analytics to maintain
competitive advantage
Getting Started
Island Analytics
Integrated Insights
and Decision Making
Data Driven Company
Compete using Analytics
Value
Complexity

Live Poll – Your Maturity Level

Foundation for Business Analytics covering your full Value Chain
• Media Mix models
• Marketing
Attribution
• RFM modeling
• Optimal Feature Mix
• High-conversion
campaigns
• SEO and SEA
• Content Marketing
• Experimental Design
Marketing Activation
• Assortment balance
• Portfolio
rationalization
• Price Optimization
• Price Elasticities
• Promotion
Optimization
• Promo demand
Forecasting
• Shelf optimization
Category Management
• Customer journey
mapping
• Customer Lifetime
Value analysis
• CX measurement
• Churn prevention
• Predictive Next Best
Action
• Loyalty analysis
Customer Engagement
Platform Management & Data Engineering
Business Intelligence & Visualization
Solution Strategy & Road Mapping
Data Science & Analytics
• Channel analytics
• Store location
analytics
• Store staffing levels
• Demand Forecast
• Inventory
optimization
• Vendor risk analysis
and optimization
• Trade analytics
Fulfillment
Capabilities
&
Processes
Organization
&
Talent

Structured delivery process – actionable deliverables
Sample Promotion Optimization project kick-off
Phase
Promotion Assessment Data Processing Promotion Analysis
Insights
& Recommendations
Business Application
Week 1 Week 2 – 3 Week 4 – 6 Week - 7 Week 8 - xx
Objectives
• Assess current promo approach
• Hypothesis to assess
• Identify limitations and
solutions
• Refine all the data needed
• Prepare for Analysis &
Modelling
• Assess promo effectiveness
• Build promo business models
for selected categories
• Generate key insights and
lessons learned
• Proof the value of promo
optimization
• Confirm what tactics to
implement and why
• Get a “Plan/Do/Check/Act”
process going
Activity
• Kick off & program governance
• Have stakeholder workshop
• Promo practice quick scan
• Capabilities quick scan
• Detailed data assessment
• Review existing promo and
sales data
• Optionally code missing data
from leaflet history
• Clean and prepare data for the
analysis & modelling phase
• Assess data automation options
• Data preparation and cleaning
• Refine approach for promo
assessment
• Develop and refine promo
business models
• Technical promo model review
• Business promo model review
• Assess visualization needs
• Analyze selected promotions on
 Promo impact (lift, margin, …)
 Promo types
 Price distance
 Timing & Frequency
• Conduct workshops
• Develop and apply promo
business rules
• Identify most relevant promo
value drivers
• Adjust promotion plans
• In market activation and
execution
• Promotion value tracking
(monthly reviews)
• Post implementation analysis
and learnings
Deliverables
• Stakeholder workshop
• Promo strategy summary
• Key business questions to
answer
• Pilot categories selection
• Data review report
• Cleaned and updated databases
• Data automation advice
• Validated promo assessment
• Validated promo business
models
• Business model documentation
• C-level summary presentation
• Category/Media Team
workshop
• Promo business rules for
selected categories
• Basic visualization/tooling
• Proof of Value
• Value realization framework
• QM process (e.g. PDCA)
• Continuous value reporting
• Stakeholder guidance
Assessment Phase Analysis Phase Implementation Phase

Activation
is key

Define and track the value from analytics:
Value realization – 3 step framework
- 1 -
Define your Value
- 2 -
Commit to your Value
- 3 -
Track your Value
• Align with stakeholders
• Define what value is for you
• Decide how your value will be
measured (KPIs)
• Get stakeholders on board
• Quantify your value
• Develop bottom-up ambition
• Create value realization plan
• Build value realization framework
• Start tracking your value
• Provide guidance to stakeholders
• Report actuals vs. plan
Value Driver Trees
Top-down Business Case
Key Performance Indicators
Bottom-up Commitment
Value Realization Plan
Outcomes Outcomes Outcomes
Bottom-up Business Cases
Value Realization Framework
Value Reporting
QMS Process (e.g. PDCA)

VISUALIZATION & MODELLING
• Monthly tracking reports
• Hypothesis validation
• Value realization reports
• Forecast updates
• “Due to“ Driver updates
• Elasticities updates
Check
SCALE AND GROW
• Plans vs. actuals
• Analyze effects
• Learn, incl. leveraging:
 Market business knowledge
 Benchmarks & best practices
• Execute at scale
Act
SMART GOALS & PLANS
• “Ist” and “soll” situation
• Hypothesis generation
• Market simulation
• Value identification
• Activation planning
• Value commitment
Plan
IN MARKET EXECUTION
• Live activation
• Small scale tests
• Experiments
• Value tracking
• Data collection
• Measurement
Do
Business
Knowledge
+ + + +
Business
Value

Success factors,
Q & A,
Discussion

Success or Failure?
• Ownership at data science
• Start from the DATA
• One time project?
• More insights to digest…
• Trying to boil the ocean
• A tool will solve it
• Business ownership
• Start from WHAT YOU DO
• Activation is a process
• Track value
• Test and learn
• Sr. management sponsor

Key take aways for this session
Winners are already using advanced analytics to compete against you
Not using data driven retail is a competitive disadvantage
Marketing, sales, shopper and supply chain typically are most eligible areas, integrated approach is key
There is value to capture in every strategic business area
You are already sitting on valuable data. We will teach you the tips and tricks to be successful
You don’t need an army to get started
Business decisions needs data, and not the other way around…
Always start from the business opportunity
Data science is “easy”, behavioral change to drive the value is a tougher “cookie” to eat
Activation does require organization adoption

Why? How?
What?

Engage with us!
Thank You
You stand out
when we blend in

Value Driver Tree CRM example

Comeos Blend360 Retail Value from Data Content v05.pdf

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