Customer Acquisition and Product-Mix: channel dependent

Challenge

A quick-service operator with ten-plus locations had separate point-of-sale systems in every store and aggregate reporting. They wanted faster store-to-store comps including product & bundle level margins at the store level.

Leadership could see how any one store was doing, but it took too long to identify variations and if they were store, operator, or chain-wide. This was especially apparent with marketing attribution.

Approach

We created new data streams in parallel to the current accounting roll-ups, preserving the detail already in the receiving and sales transaction data sources. Then we looked at traffic, product margins, product mix and actual bundle contributions store by store.

Outcome

Chain and Operator level marketing was working better in some stores and not as well in others. Product mix and daypart differences between stores were also more apparent and timely.

Using the newly available sku-level margins and product mix data, new store specific bundles were offered. A large portion of Operator marketing spend was also allocated and tailored to each specific location.

What we learned

Rolled up sales and costs, averaged across a single Franchisee Operator, leave opportunities and money on the table. Detailed comparisons from already existing (but not yet utilized) data unlocked a wealth of opportunities.