Case Studies Pick Me a Winner: Crocs uses data to improve product innovation

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	Pick Me a Winner: Crocs uses data to improve product innovation

Pick Me a Winner: Crocs uses data to improve product innovation

Technology Category	Analytics & Modeling - Machine Learning Analytics & Modeling - Predictive Analytics
Applicable Industries	Consumer Goods Retail
Applicable Functions	Product Research & Development Sales & Marketing
Use Cases	Demand Planning & Forecasting Predictive Quality Analytics
Services	Data Science Services System Integration
Challenge	Developing new products in the fashion and footwear industry is fraught with risk, as brands may invest significant resources only to find that their products do not meet customer expectations. This challenge is exacerbated by the rapid changes and trend influences in the industry. Crocs, known for its comfort-focused clog shoes, faced a decline in relevance due to a lack of style and innovation. Despite efforts to bring new designs to market quickly, Crocs struggled to consistently identify which categories represented the best opportunities for new products or line extensions. The company needed a more effective way to validate and test designs to ensure they resonated with customers and aligned with market trends. Read More
About Customer	Crocs, a well-known footwear manufacturer, gained popularity with its comfortable and simple clog shoes introduced in 2002. Over the years, the company developed a large following but faced challenges in maintaining relevance due to its unchanged design. To revitalize the brand, Crocs collaborated with designers and celebrities, releasing limited-edition and innovative versions of its clogs. The company's motto, 'Come As You Are,' emphasizes individuality and comfort. Crocs has diversified its product offerings to include sandals, sneakers, and boots, aiming to attract new fans while retaining loyal customers. The brand has also adopted a digital-focused framework to resonate with younger consumers, emphasizing personalization and trend-right updates. Read More
Solution	To address its challenges, Crocs partnered with First Insight in 2017 to integrate customer feedback more effectively into its product development process. First Insight's platform leverages years of data and machine learning to help brands identify winning designs and make informed decisions quickly. During the onboarding process, Crocs established a cross-functional team to align the platform's objectives with its strategic priorities. The platform integrates proposed designs and data, comparing them against past season items to gauge customer preferences. By presenting future products to customers and analyzing their responses, the platform generates product rankings, buy depth forecasts, and price elasticity curves. This data-driven approach enables Crocs to identify hot designs, avoid potential failures, and optimize pricing strategies. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Machine Learning

Analytics & Modeling - Predictive Analytics

Applicable Industries

Consumer Goods

Retail

Applicable Functions

Product Research & Development

Sales & Marketing

Use Cases

Demand Planning & Forecasting

Predictive Quality Analytics

Services

Data Science Services

System Integration

Challenge

Developing new products in the fashion and footwear industry is fraught with risk, as brands may invest significant resources only to find that their products do not meet customer expectations. This challenge is exacerbated by the rapid changes and trend influences in the industry. Crocs, known for its comfort-focused clog shoes, faced a decline in relevance due to a lack of style and innovation. Despite efforts to bring new designs to market quickly, Crocs struggled to consistently identify which categories represented the best opportunities for new products or line extensions. The company needed a more effective way to validate and test designs to ensure they resonated with customers and aligned with market trends.

About Customer

Crocs, a well-known footwear manufacturer, gained popularity with its comfortable and simple clog shoes introduced in 2002. Over the years, the company developed a large following but faced challenges in maintaining relevance due to its unchanged design. To revitalize the brand, Crocs collaborated with designers and celebrities, releasing limited-edition and innovative versions of its clogs. The company's motto, 'Come As You Are,' emphasizes individuality and comfort. Crocs has diversified its product offerings to include sandals, sneakers, and boots, aiming to attract new fans while retaining loyal customers. The brand has also adopted a digital-focused framework to resonate with younger consumers, emphasizing personalization and trend-right updates.

Solution

To address its challenges, Crocs partnered with First Insight in 2017 to integrate customer feedback more effectively into its product development process. First Insight's platform leverages years of data and machine learning to help brands identify winning designs and make informed decisions quickly. During the onboarding process, Crocs established a cross-functional team to align the platform's objectives with its strategic priorities. The platform integrates proposed designs and data, comparing them against past season items to gauge customer preferences. By presenting future products to customers and analyzing their responses, the platform generates product rankings, buy depth forecasts, and price elasticity curves. This data-driven approach enables Crocs to identify hot designs, avoid potential failures, and optimize pricing strategies.

Impact #1	Crocs has achieved higher assortment productivity by leveraging customer insights from the First Insight platform.
Impact #2	The company has seen increased success rates for new product launches, ensuring that new designs resonate with target customer segments.
Impact #3	The platform's data-driven approach has facilitated better decision-making, reducing reliance on gut instincts and improving strategic alignment across teams.

Impact #1

Crocs has achieved higher assortment productivity by leveraging customer insights from the First Insight platform.

Impact #2

The company has seen increased success rates for new product launches, ensuring that new designs resonate with target customer segments.

Impact #3

The platform's data-driven approach has facilitated better decision-making, reducing reliance on gut instincts and improving strategic alignment across teams.

Benefit #1	Product success rates have increased up to 80% for Crocs.
Benefit #2	Gross profit gains have reached up to 9% as a result of better identifying winning designs and cutting losers more quickly.

Benefit #1

Product success rates have increased up to 80% for Crocs.

Benefit #2

Gross profit gains have reached up to 9% as a result of better identifying winning designs and cutting losers more quickly.

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Overview

Pick Me a Winner: Crocs uses data to improve product innovation

Operational Impact

Quantitative Benefit