Case Studies APT Illuminate – Housewares Promotion

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	APT Illuminate – Housewares Promotion

APT Illuminate – Housewares Promotion

Technology Category	Analytics & Modeling - Data Mining Analytics & Modeling - Predictive Analytics Analytics & Modeling - Real Time Analytics
Applicable Industries	Retail
Applicable Functions	Business Operation Sales & Marketing
Use Cases	Predictive Replenishment
Services	Data Science Services System Integration
Challenge	A leading US retailer wanted to understand the effectiveness of its promotions by department over the past year. Specifically, the retailer wanted to evaluate its housewares promotional strategy and sought to understand key questions, including: 1. Which categories were the most effective when promoted? 2. Within the highest-performing categories, which promotions were the most effective? 3. Where should they focus within the best housewares categories? 4. Where are there missed opportunities within housewares? Read More
About Customer	The customer is a leading US retailer with a significant presence in the market. They have a diverse range of products across various departments, including housewares, auto, toys, and electronics. The retailer is known for its extensive promotional strategies aimed at driving sales and customer engagement. With a large customer base and numerous stores nationwide, the retailer continuously seeks to optimize its promotional efforts to maximize sales and profitability. The retailer's commitment to understanding and improving its promotional strategies highlights its focus on data-driven decision-making and operational excellence. Read More
Solution	The retailer leveraged APT Illuminate to conduct a deep dive into promotional effectiveness for their housewares department. The software revealed that bedding and cleaning delivered the greatest sales lifts from promotions, but there was limited impact across other, lower-performing housewares categories. In evaluating subcategory performance, the software revealed that four bedding subcategories should not be promoted, as they did not have a significant impact on sales. On the other hand, there were opportunities to promote certain top performers more frequently to drive an even greater sales impact. Breaking out the results by brand showed an opportunity to feature Brand B and C promotions more consistently. The retailer used these findings to revise its housewares promotional strategy. Specifically, the retailer increased space devoted to bedding, cleaning, bath, and cookware, instantly driving incremental sales. Also, the retailer replaced some of its housewares promotions with ones for auto, toys, and electronics, increasing sales by $2.5 million. Finally, optimizing the housewares items promoted by featuring top-performing subcategories and brands created an incremental $1.5 million in sales. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Data Mining

Analytics & Modeling - Predictive Analytics

Analytics & Modeling - Real Time Analytics

Applicable Industries

Retail

Applicable Functions

Business Operation

Sales & Marketing

Use Cases

Predictive Replenishment

Services

Data Science Services

System Integration

Challenge

A leading US retailer wanted to understand the effectiveness of its promotions by department over the past year. Specifically, the retailer wanted to evaluate its housewares promotional strategy and sought to understand key questions, including: 1. Which categories were the most effective when promoted? 2. Within the highest-performing categories, which promotions were the most effective? 3. Where should they focus within the best housewares categories? 4. Where are there missed opportunities within housewares?

About Customer

The customer is a leading US retailer with a significant presence in the market. They have a diverse range of products across various departments, including housewares, auto, toys, and electronics. The retailer is known for its extensive promotional strategies aimed at driving sales and customer engagement. With a large customer base and numerous stores nationwide, the retailer continuously seeks to optimize its promotional efforts to maximize sales and profitability. The retailer's commitment to understanding and improving its promotional strategies highlights its focus on data-driven decision-making and operational excellence.

Solution

The retailer leveraged APT Illuminate to conduct a deep dive into promotional effectiveness for their housewares department. The software revealed that bedding and cleaning delivered the greatest sales lifts from promotions, but there was limited impact across other, lower-performing housewares categories. In evaluating subcategory performance, the software revealed that four bedding subcategories should not be promoted, as they did not have a significant impact on sales. On the other hand, there were opportunities to promote certain top performers more frequently to drive an even greater sales impact. Breaking out the results by brand showed an opportunity to feature Brand B and C promotions more consistently. The retailer used these findings to revise its housewares promotional strategy. Specifically, the retailer increased space devoted to bedding, cleaning, bath, and cookware, instantly driving incremental sales. Also, the retailer replaced some of its housewares promotions with ones for auto, toys, and electronics, increasing sales by $2.5 million. Finally, optimizing the housewares items promoted by featuring top-performing subcategories and brands created an incremental $1.5 million in sales.

Impact #1	The retailer increased space devoted to bedding, cleaning, bath, and cookware, instantly driving incremental sales.
Impact #2	The retailer replaced some of its housewares promotions with ones for auto, toys, and electronics, increasing sales by $2.5 million.
Impact #3	Optimizing the housewares items promoted by featuring top-performing subcategories and brands created an incremental $1.5 million in sales.

Impact #1

The retailer increased space devoted to bedding, cleaning, bath, and cookware, instantly driving incremental sales.

Impact #2

The retailer replaced some of its housewares promotions with ones for auto, toys, and electronics, increasing sales by $2.5 million.

Impact #3

Optimizing the housewares items promoted by featuring top-performing subcategories and brands created an incremental $1.5 million in sales.

Benefit #1	Increased sales by $2.5 million from replacing housewares promotions with auto, toys, and electronics.
Benefit #2	Created an incremental $1.5 million in sales by optimizing housewares items promoted.
Benefit #3	Overall, the revised promotional strategy increased additional promotional sales by over $4 million.

Benefit #1

Increased sales by $2.5 million from replacing housewares promotions with auto, toys, and electronics.

Benefit #2

Created an incremental $1.5 million in sales by optimizing housewares items promoted.

Benefit #3

Overall, the revised promotional strategy increased additional promotional sales by over $4 million.

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Overview

APT Illuminate – Housewares Promotion

Operational Impact

Quantitative Benefit