Identifying Products that Attract New Customers
"I am impressed with Bridgetree's passion for our business and quality of work" - Sr Manager Insights
The Challenge
A fortune 600 sporting goods retailer with a diverse product mix faced a deceptively simple but strategically critical question:
"What products attract new customers?"
Although the retailer had access to detailed point-of-sale data, it was difficult for them to identify the products that motivate customers to make an initial purchase. They knew that traditional indicators such as frequency and sales could be misleading. Frequency is associated with the consumable nature of the product and sales with the price point. While useful, these indicators could mask the true drivers of a customer's initial purchase especially when the product portfolio is diverse.
The Resources
Because Bridgetree managed the client's customer data portal (CDP) and identify resolution framework, its team had direct access to consumer-level insights. Combined with its deep analytical expertise and dedicated bandwidth, Bridgetree moved beyond surface-level reporting to address the core business questions.
Bridgetree's CDP, analytical expertise and dedicated bandwidth addressed the core question.
The Solution
Bridgetree used a multi-variate ranking system to identify products most likely to shape how customers perceived the retailer's overall value proposition. Once identified, these products were referred to as Key Value Items (KVIs) and dissected further to make the findings actionable. Specifically, many of the items had higher profit margins and could chance temporary price cuts to attract new customers.
To increase the usefulness of the insights, Bridgetree identified Key Value Items by customer segment, geography and season.