Client: Major retail chain with

multple outlets
Industry: Retail
Business Impact:
Actonable insights
Drive loyalty
www.blueoceanmi.com
Leveraging balanced scorecard for performance analysis
to identify drivers of store-level fnancial performance
and deliver brand promise
Business Challenge
The client, a major retail chain with multple outlets, was in need of a balanced
scorecard model that would enable its senior leaders to understand the drivers
of store-level fnancial performance and empower the delivery of the companys
brand promise (excellent customer service, superior product quality and range,
and a highly enjoyable shopping experience). The clients hypothesis was that
the delivery of its brand promise would directly impact customer loyalty -
supportng client retenton, repeat purchasing and cross sales. They also believed
that efectve delivery of the promise was driven by employee satsfacton and
productvity.
To prove their hypotheses and achieve their objectve, the client needed to merge
a multtude of diferent research studies past and present - into one single
database, and then analyze that data at both the customer and store level.
Soluton
Our model was developed and validated in three phases:
Phase 1: Business & Data Understanding
The inital phase began with in-depth interviews among senior leaders and
selected store managers, along with employee focus groups. In additon, all
past research was reviewed and a number of data sources were identfed to be
included in the model. Together, this entailed:
Case
Study
Customer surveys - an overarching customer loyalty
survey, departmental surveys, a returns policy
survey, an alteraton quality survey and a frequent
shoppers program survey
Customer spending data - data on charge card
spending, loyalty program actvites and various
store-level fnancial metrics (e.g. store revenues)
Employee metrics - research on a wide range
of employee atributes including satsfacton,
commitment, motvaton, awareness of the customer
satsfacton drivers, their sense of empowerment
and views on training and incentvizaton
Phase 2: Data Preparaton
In the second phase, Blueocean Market Intelligence
warehoused all of the data using the Link manager platorm
to create a linked data set -frst, at individual customer level
(e.g. Customer Xs satsfacton and loyalty linked to Customer
Xs spending) and then at store level (e.g. Total customer
spending and revenues for Store 1 linked to total customer
satsfacton).
Phase 3: Modeling & Evaluaton
The fnal phase involved the applicaton of various
multvariate techniques with customer-level and store-level
data stored in the Link database to validate hypothesized
relatonships between fnancial data, customer loyalty and
employee metrics.
Outcome: Actonable Insights to Drive Loyalty
The metrics produced using the Link system provided
specifc, actonable insights into the relatonship between
the companys employees and its customers. Examples
include:
Customers identfed as loyal spent 65% more on
charge cards relatve to those who were identfed as
non-loyal; they were also 50% more likely to engage
in the loyalty program and were less open to sales
and discounts
The cosmetcs department acted as a great entre
to the overall shopping experience - so, customers
who were satsfed in cosmetc department surveys
also tried other departments and tended to provide
higher scores in the overall metrics
Over a 2-year period, loyalty scores had improved by
16% on the loyalty metric to 26%. There were also
clear linkages between store revenue / proftability
and employee / customer metrics
Blueocean Market Intelligence generated a separate
report using the Link BI reportng platorm for each
store that included aggregated customer spending
data and employee scores at the store level, enabling
store managers to see the direct relatonship between
employee management and store revenues.
Based on the results, workshops were held with store
managers to drive improvement, while impact-planning
tool kits were developed to facilitate workshops and
train-the-trainer programs.
2014 Copyright Blueocean Market Intelligence. All Rights Reserved.
About Blueocean Market Intelligence
Blueocean Market Intelligence is a global analytcs
and insights provider that helps corporatons realize
a 360-degree view of their customers through data
integraton and a mult-disciplinary approach that
enables sound, data-driven business decisions.
Since we live in a highly dynamic and mult-
dimensional world, we believe the most efectve
business decisions come from a synthesis of data
streams and not from one-dimensional sources.
Using our 360 Discovery approach, we ensure the
comprehensive use of all available structured and
unstructured data sources, enabling us to bring
the best to bear against each engagement. Strong
decision support is enabled through a combinaton
of analytcs, domain expertse, engineering and
visualizaton skills brought together in harmony.
Leading companies have benefted from our
partnership with fnancial growth, 360 views of their
markets and competton, and improved customer
acquisiton, satsfacton and retenton.
For more informaton or to request a consultaton,
please email info@blueoceanmi.com or visit us
online at www.blueoceanmi.com.
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