Strategic Analysis & Insight Project to Understand eCommerce Impact
The Challenge
I was working with a major UK retailer to help it understand and optimise the performance of its new eCommerce operation. The channel had been launched initially with a limited range due to the need to establish a new fulfilment and distribution network. After an initial 12 month period the strategic decision needed to be made about whether to extend the product range and bring additional product categories on board.
The challenge was that there were some influential Regional Directors who were concerned that the eCommerce channel was cannibalising their store sales particularly in some highly attractive promotional categories. The evidence for this was largely anecdotal and so she brief was to do some analysis that addressed the issue and to determine whether this was the case or not.
The Approach
Data discovery & analysis plan
First step was a data discovery exercise to understand what assets were available and to identify any potential gaps. Inevitably there was a tight deadline for the analysis completed by so there was a balance to be struck between using any data assets that already might be of use and conducting fresh research or analysis where required.
Having quickly done the data discovery the next step was to create an analytics plan to determine what analytics could be done with each data source to look at the issue and what role it should play I the overall solution. In the end the plan was for a mix of analysis on existing data assets combined with some fresh research and analysis that could be completed in the time available to plug some particularly important gaps.
Analysis
The analysis plan centred around 5 main strands:
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Analysis of consumer panel shopping behaviour data to understand store/channel switching dynamics and demographic profiling
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Leveraging an existing in-store tracking survey to understand existing store shopper’s awareness of and likelihood to use the online channel
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Payments data analysis to look for store/eCommerce overlaps
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Geodemographic data analysis to profile the online shopper base against existing store locations and their catchment areas
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Digital analytics data analysis to understand online behaviours around product purchasing vs using the online store locator
Storytelling
Finally, the results of the analysis needed to be crafted into a coherent story that could be presented at the CEO & Board level. The processes and guidelines for submitting presentations were rigorously defined and so time and care was taken in generating the deliverable to ensure that the salient points were clear, reasoned and unambiguous.
The Outcome
The results from the various strands of analysis showed that the online channel was actually largely acquiring new customers to the brand and that indeed any cannibalisation was significantly offset by the incremental volume. The eCommerce channel was largely attracting a demographic group that were not typically store shoppers and were also mainly outside existing store catchment areas. This was to some extent a feature of the existing online range but demonstrated that with careful range selections, the eCommerce channel could be used to attract to customers to the brand.
This result was supported by other elements of the analysis. For example, analysis of the digital analytics showed that potential customers were as likely to look for their nearest store after viewing a product as they were to add to basket. As a result of these insights, the decision was taken to continue with the online expansion and broaden the product range.
Feedback
As part of the consulting company's annual 360 review process I received the following feedback about my work on this engagement
Delivery Lead (Stakeholder)
"Neil managed a radical mindset shift across the hub, from leadership to the teams, and made data a prime focus and concern in the hub’s operations. He achieved this with his didactic skills and I was amongst the many whom Neil has trained in the basics of data analytics. Neil could find the appropriate language to address his audience in Show & Tell sessions, leadership presentations and team workshops"
Client Account Lead (Stakeholder)
"Neil clearly has a strong understanding of data and analytics - how to set up teams, how to set up the technology, how to drive insight"
Analyst (Team Member)
"Neil was my line manager and in an informal capacity also my mentor. Under Neil's tutelage I learned a great deal about both analytics and stakeholder management. My recent promotion from analyst to consultant stands testament to the professional growth I have achieved from working under Neil."
Product Owner (Stakeholder)
"Neil has extremely powerful story telling techniques & is able to take complex data, synthesis it, digest & then clearly play back to business stakeholders with the aim of influencing key decision makers."