Resource Deployment Model generates over $6m in incremental sales

Resource Deployment Model generates over $6m in incremental sales

THE CHALLENGE

The CPG client’s merchandising store coverage strategy consisted of a legacy approach where all stores received the same visit frequency, regardless of store size or potential. They wanted to use a more data-led approach to understand the sales impact of merchandising visits.

OUR APPROACH

Use the Axis DEPLOY solution as a dynamic merchandising allocation model designed to detect growth opportunities and prioritise ROI. DEPLOY helps calculate the optimum level and allocation of field resources to store level, in which the expected sales revenue impact for each store offsets the cost of deploying that resource, at desired ROI level.

  1. 1. STRATEGY – Agree on headline ASSUMPTIONS such as target ROI, labor costs, sales lift estimates, budget constraints, etc.
  2. 2. DEPLOYMENT – Apply DEPLOY’s resource allocation model to determine the optimal amount of time per month to be spent merchandising in each store according to each store’s UPLIFT POTENTIAL, constrained to the target ROI and budget.
  3. 3. MEASURE SUCCESS – robustly MEASURE THE IMPACT of our model vs. the client’s historical merchandising model in a test vs. control environment, tracking uplift percentages and volumes.
Our Approach
RESULTS

18:1 ROI at Retail Sale Value
+1.8% sales uplift
+$6.4M incremental sales value over 12 months

RESULTS