Sales Analytics BI Module
Out-of-the-box Solution for Analyzing your Sales
We experience a growing interest in sales analytics in the area of affinity analysis, also referred to as market basket analysis. One of Swedens largest multinational companies within the retailing industry, who is also our customer, requested a solution for analyzing the changed design and layout of the physical store display area. The question to be answered was; did the new design and layout meet the objective to increase cross sales and add-on sales?
This project was pretty straight forward without major challenges. Sales analytics rely upon the information stored in your sales sytem, no surprise to anyone. Ticket information is pretty standardized independently of the sales system used. It includes the basic dimensions as product, date, time and unit. If you are running an e-commerce business and your system also includes invoices and delivery orders you also have access to customer information as e.g. customer address. Furthermore, if loyalty cards are used, additional customer profile attributes are available in the system. The challenge is not to collect the data but to take advantage of the information you have in a simple and efficient way.
Tickets and Affinity Analysis
In order to meet our customer´s request we needed to consolidate the ticket information, including details on the customers purchases, with the objectives and other meta data as e.g. organization and product structure. To import all relevant data we established an automatic import using GADD ETL and saving in Microsoft SQL Server, and to do the needed affinity analysis we used GADD Affinity Analysis Module. When all data was retrieved and calculations were done, it was easy to create web based dashboards to make the result available for all stakeholders.
Keep it Simple or Make it Complex?
Within a company there are different needs for follow-up, and this was the case also in this project. We therefor decided to create two versions of the GADD Sales Analytics solution. One Express and one Professional. The Express version mainly focused on being easy to use and we settled for only having the basic ticket information as input data. The Professional version supported not only the basic ticket information but also additional customer information as well as additional meta data.
Download or Upload? Windows or Cloud?
The question if the GADD Sales Analytics solution should be a Windows application or a Cloud service was a topic that was debated during the project. Was our customer ready to trust and upload their tickets to “the Cloud”? We could not determine so we decided to do both and start with the Windows version.
GADD Sales Analytics Moving Forward
We started with basic needs to enable affinity analysis and it was important to make it easy to use and to integrate and started with the tickets. During the project we thougt it made sense also to supplement with trend detection, predict and possibility to include organization, product structure and customer information. The GADD Sales Analytics solution has proven to be an excellent platform for analyzing the changed design and layout of the physical store display area in a simple and efficient way.
The next step includes also stock information to enable prognosis of OTB (Open to Buy) supporting seasonal sales. This feature provides good control in order to optimize stock and avoid overstock and shortage.
- Import the tickets and get all information via interactive dashboards including affinity analysis.
- Sales on products per unit, date, time-of-day to compare e.g. dates, units, weekdays etc.
- Analysis on tickets (orders and/or receipts) average, min, max amounts and quantities.
- Sales trends on all products. Find the products with the best trends during the last few days.
- Market Basket Analysis to analyze customer purchase patterns.
- Product used: GADD Sales Analytics.
Author: Per-Anders Angenius