CONNECT3 News Releases
January 14, 2008
Connect3 Releases "Shopper Analytics" to Drive Promotion Strategy
Leveraging the rich promotion history in Connect3 Promotion Manager, new "Shopper Analytics" solution identifies key opportunities to increase promotional sales and decrease costs.
Cerritos, CA / New York, NY - January 14, 2008 ---
Connect3 Systems, Inc., the leading provider of enterprise Advertising, Merchandising and Promotion (AMP) software solutions for retailers, today released a new capability called "Connect3 Shopper Analytics" in conjunction with the NRF "Big Show" in New York. This new capability is available to retailers either as a consulting engagement, as a Software as a Service offering or delivered and installed behind the retailer's firewall. Regardless of how it is deployed, Connect3 Shopper Analytics quickly identifies promotional opportunities to drive sales and margins while reducing overall promotional costs.
Connect3 Shopper Analytics Overview:
Connect3 Shopper Analytics enables retailers to perform category driver analysis on customer shopping baskets to determine the optimum products to promote to increase transactions which drive higher sales and margins. By analyzing and clustering transaction data in conjunction with key promotion activities and loyalty card information, users can identify product assortments by department, category or SKU and pass these recommendations to the merchants via Connect3 Promotion Manager. This information, delivered in-line with the merchants planning environment, provides the information they need to make smarter decisions, faster. Retailers can also eliminate unproductive SKUs that don't drive incremental basket volume from the promotional mix and help Marketing be more "Green" while cutting costs by eliminating non-productive pages from the circular/flyer.
Shopper Analytics Key Functionality:
- Segments customers based on historic purchases and groups them according to shopping patterns.
- Analyzes customer baskets and identifies which items drove sales (Drivers) and which items were sold as a result of the Driver (Draftees) for each customer segment.
- Distinguishes those categories to promote and those categories not to promote based on defining the Drivers and Draftees for the cluster, and provides a conduit by which promotion recommendations can be sent to merchants via Promotion Manager (eg. Promote Drivers, not Draftees).
- Reviews margins/revenue by 'basket' -- compare product margins 'in' the basket to product margins 'out' of the basket to determine the most profitable baskets.
- Identifies optimal potential for each shopper and shopper segment. Understand which categories your current shoppers are purchasing in your competitors stores.
Key Benefits:
- Increases sales and margin by understanding a promotion’s impact on the shopper basket before the promotion is implemented.
- Increases vendor funds when requested to promote non-driver categories (e.g. charge vendor more for items identified as "draftee" products).
- For loyalty card retailers, increases sales and shopper basket by marketing categories that customers are purchasing from your competitors.
- Reduces promotional overstock and/or under stock conditions by better understanding the demand created from future promotion activities.
- Reduces promotional costs by:
- Focusing on category drivers--key category purchases that drive the consumer to purchase other categories.
- Promoting clusters with high sales/margin rates for front/back cover advertising.
- Reducing the number of pages printed while not giving up sales/margin.
- Promoting driver categories using the channel most likely to target the right customer.
About Connect3
Connect3 Systems, Inc. is the leading provider of enterprise Advertising, Merchandising, and Promotion (AMP) software solutions for retailers. For over 14 years, Connect3 has partnered with leading retailers to develop a highly configurable AMP framework that, combined with Connect3 Professional Services, supports advanced promotion planning, analysis, optimization, collaborative calendaring, workflow and versioned advertising execution. Connect3 customers include Best Buy, The Home Depot, ShopKo Stores, Academy Sports + Outdoors, ACE Hardware, Circuit City, Do-it-Best Corp., Belk, Inc., Office Depot, Giant Eagle and others. For more information, please email
info@connect3.com or telephone (562) 741-0380.