DemandTec

Market Basket Profile Analysis
Helps retailers understand which consumer purchasing behaviors drive larger, more profitable market baskets.

Customer Segmentation Analysis
Enables retailers to create a new segmentation scheme or refine an existing one to better target their customers.

Affinity Analysis
Helps retailers determine the probability of a follow-on purchase to improve their merchandising and secondary placements.

Image Item Analysis
A llows retailer to enhance their price image by analyzing item and basket-level data to determine key items by chain, store, or customer segment.

Zone Analysis / Store Clustering
Helps retailers analyze customer segments, store-level demand and geo-demographic factors to create or reconfigure ad zones that improve volume and profit potential.

Better Understand and Segment Customers

The foundation of every effective merchandising and marketing program is a fundamental understanding of a retailer’s customers. Using a resource that retailers often already possess – customer-level transaction data – combined with sophisticated segmentation and modeling techniques, retailers are able to determine the current and potential value of each customer. With this knowledge, retailers are then able to identify which customers are the most valuable and need to be retained; which are valuable, but could generate incremental value by capturing more of their expenditures; which currently aren’t valuable, but have potential; and which have little value and are unlikely to change. Retailers can then use this understanding of their customers to identify the biggest areas of opportunity by segment and design customer-centric marketing and merchandising programs that align investments with value potential.

Gain New Insights into Customer Loyalty

DemandTec’s platform for customer-centric decision making, combined with advanced customer analytics and marketing expertise from Precima, enables retailers to gain new insights into customer loyalty. For example, retailers can analyze market baskets and product affinities to understand the categories, brands, and items that are associated with the purchasing behavior of the most loyal and most profitable customers. They can also perform detailed analysis of customer loyalty data to identify behavior that is predictive of customer attrition, and then apply prediction factors to existing customers to identify customers that are at risk of defecting.

Plan, Execute, and Track One-to-One and Mass-Targeted Marketing Campaigns Aligned with In-Store Merchandising Tactics

DemandTec and Precima can help retailers consistently and effectively execute marketing and merchandising plans to retain valuable customers and increase customer value. With the knowledge and technologies of the combined team, retailers are able to identify the right value propositions for specific customer segments and the right mechanisms through which to communicate those value propositions. Depending on a retailer’s goals, this could take the form of one-to-one targeted marketing programs with highly relevant offers. These plans could include new operations strategies that allow retailers to tailor the store experience for key customer segments while maintaining supply chain efficiencies and managing other practical constraints. These plans could also include customer-centric merchandising policies that are aligned with marketing and operations. Retailers can then track the impact on customer loyalty and financial performance to ensure that retailers achieve their goals.