Beauty Company sales growth by 25 percent
Data analysis is done pre and post-launch of Beauty products, most of which is concentrated on product quality and consumer behavior. Changes are made by companies in these domains to offer better experience and garner more profitability. But surprisingly very less study is done regarding the phases related to distribution as neither manufacturing company nor the third party analytics firm has expertise in that domain and the data collection is a bit fragmented. This leaves behind a big grey area of profitability which companies can encash but neglect just due to lack of appropriate analysis channels.
One of our Beauty products clients approached us with a problem where all their so-called ‘4P’s were strong but still they were not able to do better.
Company witnessed stagnant revenue over past couple of months. They were not able to ‘diagnose’ the actual problem even after having positive results from customer surveys.
We helped to enhance sales of the company by suggesting important tweaks in packaging of the products based on Data analytics.
This case was a bit complex as we had to first spot the problem and then develop solution for it. It required an extensive survey of whole process beginning right from market research, production process to distribution, sales and post-sales customer experience. A strong analytics algorithm was needed for this backed with a well-equipped and organized data management system:
• Benchmarking, Competitor Analysis.
• Advanced Gap Analysis and R&D Optimizations.
• 360 Degree co-ordination of Sales figures across product assortments.
• Visually mapped revenues area-wise, product-wise and value, weight-wise.
• Our prediction was confirmed after on-field survey of sample Modern trades, general trade outlets across the nation.
• Despite having all 4Ps in place, company was lacking synchronization amongst these. The packaging though attractive, did not match the perception that company created about its product through promotions.
• We thus suggested introduction of slight change in logo, color and also recommended introduction of certain LPUs (Low price Units) for some of their products based on our survey and analysis.
• Revenues increased by 25% just 13 months after implementation of model.
• Profitability increased significantly.
• No. of units sold increased despite increase in price / unit Volume.
• Number of outlets as well as sales / outlet increased across nation.
Jennifer Taleon | Silk & Threads
Silk & Threads is a clothing company that is focused on urban and metro fashion ware. It is a late entrant in a saturated market, with major competitors that are entrenched within the niche category. The business idea is pre-launch and the client wanted to obtain a go-to-market strategy that would help her get the idea off the ground.
By switching to an OPEX model, Jennifer was able to reduce capital expenditure by 435%. Jennifer was also able to enhance brand equity and determine a better product-market fit through a detailed competitor analysis, and business models that minimized capital investment.
Jewelry Retail Chain
Retail Industry had comprehended this Darwin’s quote well early and thus embraced Analytics for ‘responding’ to changes, to not only survive but emerge profitably. In parallel to traditional methods of studying consumer behavior, retail analytics has now explored new realms of Predictive Analytics and Neuro-Analysis to spot the ‘Buy-Button’ inside the buyers’ brains!
We had the opportunity to develop and successfully implement such predictive model for one of our clients who approached us with the problem of Inventory and Cash Flow Management and non-growing sales.
As seen in most of the capital intensive retail businesses, the client was finding it difficult to have stock of products in demand and less / no stock of products which had minuscule demand or no demand.
We developed a product to predict potential sales and products which would contribute to it.
We broke down the process in following parts:
Revenue Framework, Profitability Framework and Risk Framework
• Revenue Framework related to Sales and Marketing of Jewellery Retail Chain. After analysis of their historical sales pattern (Customer-wise, time-wise, product-wise and region-wise), we identified certain pivot metrics and re-iterated our analysis algorithm to formulate an improved sales funnel.
• Profitability Framework majorly included production and operations of the retail chain. We studied how much cash was tied up in the form of unsold jewellery and realized that some of the resources spent in inventory were eroding profitability. We thus suggested convenient measures to predict inventory levels and improve operational efficiency.
• Risk Framework dealt with tracking and reducing potential dangers of the retail chain related to Cash Flow, Debt / equity and Interests. We also studied churn rates of customers and thus tweaked cash flow management in resonance with those rates and inventory levels of different kinds of jewellery.
• Increase in sale by 17.1%.
• Reduction of Inventory cost by 13.5%.
• Reduction in working capital requirement by 12%.
Improved operations for Hospital
Despite the increased awareness regarding blood donation and advancements in blood transfusion process, there always exists a mismatch between availability and demand of blood in India. Meager co-ordination among donors and collection channels is the prime reason for this mismatch.
One of our clients approached us with a similar problem. Mismatch between blood required and blood available with them led to lots of casualties.
We built not only a robust model in place for overcoming the mismatch problem but also a reliable algorithm for prediction of availability and demand.
Initially, we did the survey of doctors, phlebotomists, donors and blood bank staff.
• It was followed by assembling blood bank data, medication histories of patients and identifications of key drivers.
• Process analysis led us to discern bottleneck of the collection procedure
• We emphasized on analysis of historical donation patterns at the blood bank for each donor on different parameters.
• We were thus able to approach ‘right donors’ at the ‘right time’ to maintain the blood inventories.
• 70% improvement in blood collection.
• Process innovation.
• Approaching ‘right’ donors not only increased availability of rare blood groups but also led to collection of pathologically certified ‘quality’ blood.
• Prediction model matched actual donation patterns.
• Time and Cost savings for Blood bank and patients too.
• Lesser casualties thus saving lives!
Employee Attrition Rate Downfall
HR Analytics is proving its mettle in various sectors by helping companies not only save heavily on recruitment of new talent but also deal with age-long problem like attrition of employees, their training and rewarding programs. It has been proven from various examples that companies which implement HR Analytics in their HRM tend to have better work-environment than companies which don’t use it. One of our clients approached us with an issue in HRM which was related to attrition of their employees and it also affected their work-environment and revenues.
Untimely attrition of employees was causing workforce management hurdles and deteriorated customer service quality in stores. Increased HRM costs for regularly hiring new employees and reduced revenues due to customer experience issues were eating heavily into our client’s profitability.
Developed EMS (Employee Management System) and IPS (Individual Predictive Score) by integrating innovative algorithms and analysis after studying behavior, performance patterns of individuals and teams.
• Primary survey of HR Managers and Employees
• Study of compensation and reward programs in the company
• Analysis of historical turnover rates
• Sentiment analysis of employees
• 360 degrees evaluation
• Mapped ‘Willingness to work’ of employees at various locations and times in specific teams
• Structured new ‘Exit Interview’
Using studies like these helped us define independent parameters for developing our customized EPS for this company. We developed algorithms to optimize this process of recruitment and rewarding which resulted immediately in better staffing of employees.
In addition to these, we developed unique IPS (Individual predictive score). This displayed evaluation of each individual employee in quantified manner based on our analysis, which helped managers to take informative decisions beforehand. This use of data science helped predict attrition rates which were proved to be correct in the course of time to up to 90%.
• 22% Reduction in attrition of Employees in just 6 months
• Increased productivity of Managers and Employees
• 16% increase in ‘Profit per store’
• Average Customer Experience score increased from 3.6 to 3.9 (on a scale of 5)
Pamela Turner | PT2 Fitness
Pamela Turner is a personal fitness trainer and lifestyle coach who wanted to create a website to blog about her personal training journey while she prepared for competition. Through having a more professional online presence, she wanted to attract visitors to her website in order to convert them into leads that would propel her to launch her business, PT2 Fitness.
Through converting her blog into a more professional website, Pamela was able to begin sharing her personal training journey as part of her goal towards launching a business. She also learned online marketing strategies, including SEO and social media, to drive more visitors to her site.
Sam Ali | Cheap Little Cigars
Cheap Little Cigars faced erosion of its long-established leadership due to market changes that reduced employee morale and faced increased competition. They wanted to curb the high customer churn rate in its retail business and stop the contraction of market share. Quantify consultants needed to work with the CEO to improve customer loyalty through a comprehensive program, including cultural and technological change.
After being a market leader for so long, my business was facing systemic challenges. Quantify consultants helped me put together a comprehensive business strategy that stopped the bleeding and positioned my business to become a sustainable market leader.