Case Studies APT Illuminate

Edit This Case Study Record

	APT Illuminate

APT Illuminate

Technology Category	Analytics & Modeling - Data Mining Analytics & Modeling - Predictive Analytics Analytics & Modeling - Real Time Analytics
Applicable Industries	Retail
Applicable Functions	Business Operation Sales & Marketing
Services	Data Science Services System Integration
Challenge	The CEO of a major US apparel retailer, with over $5 billion in annual sales, recognized that their existing promotional strategy was underperforming. The retailer had been running 45 circulars per year without holdouts but could only analyze a small subset of these circulars. Circular sales accounted for 20% of total store sales, making it crucial to optimize their performance. The CEO tasked the management team with leveraging data-driven analytics to make informed decisions on which items to promote and how to promote them. Read More
About Customer	The customer is a major US apparel retailer with over $5 billion in annual sales. The retailer had been running 45 circulars per year without holdouts but was unable to analyze more than a small subset of these circulars. Circular sales accounted for 20% of total store sales, making it crucial to optimize their performance. The CEO tasked the management team with leveraging data-driven analytics to make informed decisions on which items to promote and how to promote them. Read More
Solution	APT helped the retailer use three years of historical promotion data to establish the retailer’s non-promotional baseline. Analysts then used APT Illuminate to measure the impact of each promotion. APT’s rigorous analytical approach identified the drivers of promotional success. Specifically, the software determined which combinations of product, season, discount, media type, and placement in the circular led to different levels of performance. Further, APT Illuminate back-tested these findings to validate the accuracy of the predictions. Overall, APT Illuminate determined that 40% of the company’s promotions did not have any impact on sales, and in some cases were even profit-negative. Going forward, the retailer was able to develop a unique strategy for each circular to maximize the impact. In one month alone, APT Illuminate identified huge opportunities to shift away from poorly performing promotions, generating over $3 million in incremental margin. 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

Services

Data Science Services

System Integration

Challenge

The CEO of a major US apparel retailer, with over $5 billion in annual sales, recognized that their existing promotional strategy was underperforming. The retailer had been running 45 circulars per year without holdouts but could only analyze a small subset of these circulars. Circular sales accounted for 20% of total store sales, making it crucial to optimize their performance. The CEO tasked the management team with leveraging data-driven analytics to make informed decisions on which items to promote and how to promote them.

About Customer

The customer is a major US apparel retailer with over $5 billion in annual sales. The retailer had been running 45 circulars per year without holdouts but was unable to analyze more than a small subset of these circulars. Circular sales accounted for 20% of total store sales, making it crucial to optimize their performance. The CEO tasked the management team with leveraging data-driven analytics to make informed decisions on which items to promote and how to promote them.

Solution

APT helped the retailer use three years of historical promotion data to establish the retailer’s non-promotional baseline. Analysts then used APT Illuminate to measure the impact of each promotion. APT’s rigorous analytical approach identified the drivers of promotional success. Specifically, the software determined which combinations of product, season, discount, media type, and placement in the circular led to different levels of performance. Further, APT Illuminate back-tested these findings to validate the accuracy of the predictions. Overall, APT Illuminate determined that 40% of the company’s promotions did not have any impact on sales, and in some cases were even profit-negative. Going forward, the retailer was able to develop a unique strategy for each circular to maximize the impact. In one month alone, APT Illuminate identified huge opportunities to shift away from poorly performing promotions, generating over $3 million in incremental margin.

Impact #1	APT Illuminate identified that 40% of the company’s promotions did not have any impact on sales, and in some cases were even profit-negative.
Impact #2	The retailer was able to develop a unique strategy for each circular to maximize the impact.
Impact #3	APT Illuminate identified huge opportunities to shift away from poorly performing promotions.

Impact #1

APT Illuminate identified that 40% of the company’s promotions did not have any impact on sales, and in some cases were even profit-negative.

Impact #2

The retailer was able to develop a unique strategy for each circular to maximize the impact.

Impact #3

APT Illuminate identified huge opportunities to shift away from poorly performing promotions.

Benefit #1	APT Illuminate generated over $3 million in incremental margin in one month alone.

Benefit #1

APT Illuminate generated over $3 million in incremental margin in one month alone.

Download PDF Version

Overview

APT Illuminate

Operational Impact

Quantitative Benefit