A large direct selling company was looking for ways to improve forecasting accuracy for new, limited life products which had little or no previous sales history. New product forecasts are relatively inaccurate, and lead to large losses from over- or under-stocks.
Solution
We developed a sophisticated ‘Demand in Advance’ modeling system to predict customer demand three months in advance, based on a well-defined customer sample and incorporating a model which is sensitive to seasonal offsets as well as historical biases by product category. This has allowed the company to save $15 million in annual operating expenses.
A large direct selling company wanted to increase its distributor retention and sales productivity.
Solution
We developed target profiles of successful distributors and customers and used the attributes to develop a new distributor and customer acquisition strategy. Prospecting databases were mined and leads were generated that fit the target profile. At the same time predictive models were developed to identify attrition risk among existing distributors. This program resulted in a reduction in distributor churn of 15% and in turn led to an annual sales increase of 5%.
A $300 million consumer products company was struggling to monitor Sales and other KPIs in a real time environment.
Solution
An intelligent dashboard was designed which allowed key decision makers to view operational KPIs and understand sales trends. In addition, a sophisticated ‘what-if’ planning module was implemented to allow users to analyze impact of key business drivers on sales & profit. This project allowed the company to increase sales by $10 million annually.
A $100 million consumer products company had a significant challenge in reducing operational expenses.
Solution
We created a Lifetime Value Scoring algorithm to help the company develop customer segmentation. This enabled the company to develop targeted marketing programs and to optimize allocation of Customer Service and Sales resources. Use of Lifetime Value model resulted in annual cost reductions of $4 million.
A $500 million Catalog company wanted to improve its marketing mix analysis.
Solution
For the company’s Spring and Winter catalogs, we provided significant insights on three major questions - a) What is the elasticity of pricing b) Which product should appear on which page and c) How should promotional offers be leveraged. Both Spring and Winter catalogs generated an incremental $20 million in revenue.