Case Studies National Department Store Aggressively Invests in Analytics Solutions

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	National Department Store Aggressively Invests in Analytics Solutions

National Department Store Aggressively Invests in Analytics Solutions

Technology Category	Analytics & Modeling - Big Data Analytics Analytics & Modeling - Predictive Analytics Application Infrastructure & Middleware - Data Visualization
Applicable Industries	Retail
Applicable Functions	Business Operation Sales & Marketing
Services	Data Science Services System Integration
Challenge	The executive team at a national department store wanted to target a specific customer segment with a new private label, with the expectation that it would increase sales. The new label included a full line of women’s ready-to-wear, men’s sportswear, and men’s tailored apparel. But before allocating funds for a national launch, the team wanted more insight into how shoppers would interact with the label and an idea of what they could expect in sales. Read More
About Customer	The customer is a national department store chain that operates multiple locations across the United States. The store offers a wide range of products, including women's ready-to-wear, men's sportswear, and men's tailored apparel. The executive team is focused on increasing sales and targeting specific customer segments through strategic product launches and marketing initiatives. The store is known for its commitment to providing high-quality products and exceptional customer service. With a large customer base and significant market presence, the department store is continuously looking for innovative ways to enhance the shopping experience and drive revenue growth. Read More
Solution	They chose RetailNext as their analytics provider and set up a four-week pilot test to measure performance baselines and gather information. They designed a label-specific pop-up shop and placed it in a highly trafficked area with a large population of the intended customer segment. The pop-up shop also held a series of promotional events to garner interest and increase store traffic. The goals for the pilot test were to: 1) gather accurate performance metrics on overall traffic, category traffic, fitting room traffic, shopper interaction with displays, and conversions; and 2) determine the label’s ability to attract and sell items to the intended market segment. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Big Data Analytics

Analytics & Modeling - Predictive Analytics

Application Infrastructure & Middleware - Data Visualization

Applicable Industries

Retail

Applicable Functions

Business Operation

Sales & Marketing

Services

Data Science Services

System Integration

Challenge

The executive team at a national department store wanted to target a specific customer segment with a new private label, with the expectation that it would increase sales. The new label included a full line of women’s ready-to-wear, men’s sportswear, and men’s tailored apparel. But before allocating funds for a national launch, the team wanted more insight into how shoppers would interact with the label and an idea of what they could expect in sales.

About Customer

The customer is a national department store chain that operates multiple locations across the United States. The store offers a wide range of products, including women's ready-to-wear, men's sportswear, and men's tailored apparel. The executive team is focused on increasing sales and targeting specific customer segments through strategic product launches and marketing initiatives. The store is known for its commitment to providing high-quality products and exceptional customer service. With a large customer base and significant market presence, the department store is continuously looking for innovative ways to enhance the shopping experience and drive revenue growth.

Solution

They chose RetailNext as their analytics provider and set up a four-week pilot test to measure performance baselines and gather information. They designed a label-specific pop-up shop and placed it in a highly trafficked area with a large population of the intended customer segment. The pop-up shop also held a series of promotional events to garner interest and increase store traffic. The goals for the pilot test were to: 1) gather accurate performance metrics on overall traffic, category traffic, fitting room traffic, shopper interaction with displays, and conversions; and 2) determine the label’s ability to attract and sell items to the intended market segment.

Impact #1	RetailNext quickly delivered favorable conversion statistics, including several never before available, such as conversion of fitting room traffic to sales.
Impact #2	The team used the test information as an integral component of the successful product line launch.
Impact #3	Several of the retailer’s other locations now use RetailNext on an ongoing basis.

Impact #1

RetailNext quickly delivered favorable conversion statistics, including several never before available, such as conversion of fitting room traffic to sales.

Impact #2

The team used the test information as an integral component of the successful product line launch.

Impact #3

Several of the retailer’s other locations now use RetailNext on an ongoing basis.

Benefit #1	20% of those who entered the store went to the fitting room. Average fitting room conversion was 67% for the four-week period during which the pop-up shop was open.
Benefit #2	Of the women’s ready-to-wear traffic, on average, 62% stayed within the front of the shop. Only 38% traveled to the back of the shop.
Benefit #3	During the first week of the shop’s opening, which overlapped with the Valentine’s Day holiday, men’s sportswear dwell conversion exceeded 30% (average for the entire period of the shop was 18% dwell conversion).

Benefit #1

20% of those who entered the store went to the fitting room. Average fitting room conversion was 67% for the four-week period during which the pop-up shop was open.

Benefit #2

Of the women’s ready-to-wear traffic, on average, 62% stayed within the front of the shop. Only 38% traveled to the back of the shop.

Benefit #3

During the first week of the shop’s opening, which overlapped with the Valentine’s Day holiday, men’s sportswear dwell conversion exceeded 30% (average for the entire period of the shop was 18% dwell conversion).

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Overview

National Department Store Aggressively Invests in Analytics Solutions

Operational Impact

Quantitative Benefit