Grocery retailers care about pricing, promotion, communication, and profitability. Analytics matters. Fulcrum Analytics can help.
Grocery retailers face a unique set of challenges within the retail sector, as much of their inventory is perishable, and the traditional use of price promotions can make it hard to understand a product's true price elasticity. With narrowing margins and continuous competition, grocery retailers are always looking for an edge. So how does a retailer decide which items to put on sale each week given thousands of SKUs and multiple locations?
Fulcrum Analytics has been delivering solutions for the grocery industry for more than a decade, helping clients put valuable data assets to work to improve pricing, promotion, and communication decisions to increase profitability.
In addition to its grocery analytics consulting team, Fulcrum offers RetailViewer and Circular Optimizer backed by our team of industry experts to help grocery retailers make analytically informed decisions.
A web-based platform that automates previously manual ad-hoc analysis and provides a holistic view of the retailer’s performance. It allows retailers to quickly and easily compare pricing strategies, track promotion effects over time, and determine optimal everyday pricing based on a variety of customizable objectives. RetailViewer can be implemented alone with base functionality or can optionally be customized for your unique needs and data capabilities with features such as Circular Optimizer and Segment Maximizer.
RetailViewer drives decision-making:
- Ingests daily line-item level transaction feeds
- Ingests promotional history
- Aggregates product, promotion, and profit data for comprehensive analysis
- Product, store, channel, region, and customer dimensions
- Calculates profitability at every price point
- Analyzes sales and profit over historical date ranges
- Provides product analysis in visual form and tables
- Exports charts and data files from the web interface
RetailViewer can be customized with:
- Circular Optimizer which allows grocery retailers to build their weekly flyer using automated product-specific analysis and allows retailers to customize versions of a circular by market or store segment.
- Segment Maximizer which allows grocery retailers to conduct deep-dive analytics at the household or store segment level:
- Measure pricing and promotion results
- Identify target products for segment-specific marketing tactics
- Inform long-term segment-specific strategic goals
- Retailer-specific ad-hoc features for customized insights
Data Science Consulting
Our Data Science Acceleration Team (DSAT) 2.5 is great for any grocer looking to ramp up their data capabilities. A DSAT 2.5 package comes equipped with a team of interchangeable specialists fitted to your needs. To optimize your engagement outcomes, a mix of data scientists, engineers, developers and the project lead will work the equivalent of two and a half full time resources. Whether you are a small grocery chain with no data science team or a national grocery chain with more projects than the bandwidth you have to support, DSAT 2.5 can help move you forward.
Matched Control Groups
Effectively measure the impact of marketing initiatives such as mass media campaigns at the store and market level with Matched Control Groups. Fulcrum provides insights by intelligently segmenting and comparing different stores or regions while considering various factors such as market pressure and market demographics.
Recent Thoughts on Grocery Analytics
How we have helped clients
A food and beverage company was looking to measure a mass media campaign’s impact on new customer acquisition. Measurement of results was complicated since each market included in the campaign had stores with varying baseline performance levels, competitive pressures, and demographic compositions. Fulcrum successfully measured lift by building “matched control groups” at the store and market levels, matching stores in treated markets with comparable stores in untreated markets based on a number of relevant criteria. We calculated the results of the campaign’s impact at the store and market level, as well as aggregated for total campaign performance. This approach also allowed measurement by other dimensions such as store format, population density, and proximity to competitors.
A leading retailer wanted to develop a customer segmentation and various predictive modeling tools to enable relationship marketing operations. Fulcrum built and implemented a multi-dimensional segmentation solution that assigned customer households into unique segments and sub-segments based on each customer household's relationship cycle, purchase behaviors, value contribution and demographics. Fulcrum then built models to support retention, cross-sell, and customer lifetime value, and provided a Relationship Marketing Lab to support model-driven marketing tests. The combined application of the segmentation, predictive models, and marketing tests increased sales revenue and profit from direct marketing investments.