Competition Analysis, for RETAILERS

Analytics for Retailers

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does not give you any license to these patents, trademarks, copyrights, or other intellectual property. Datamine is a registered trademark. ‘use.your.data’ is a registered trademark

October 2011, datamine ltd

CAS/R

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Outline Analytics for Retailers

CAS/R main functions

CAS/R overview

Reporting & Analytics

Integration with 3rd party sites

Dynamic pricing

Recommendation Engine

In browser proposal wizard

The marketing data mart

Campaign management


Analytics for Retail

Loyalty platform Specialized platform enabling personalized

offerings, bonus & rewards depending on

behavioral data and corporate policies

Competition Analysis Tools for accessing & analyzing market data,

enabling decisioning on pricing and product

release information

Analytical models Association Rules, Market basket analysis,

trends, seasonal patterns for management &

marketing purposes

Customer Segmentation schemes Modelling towards a global segmentation

scheme for analysis and marketing actions

Online Components & mobile apps Product Recommendation engines,

integration with portal/ site

Campaign Management Tools for defining intelligent campaigns,

designing target groups, and personalized

communication for certain products

ETL components Data handling,

transformation,

cleansing &

normalization packages

Customer DB Product DB

Product info

Additional

data files

corporate data sources

Specialized database, enriched with

customer meta data, statistics,

optimized for analysis

Customer

Data mart

Infr

astr

uctu

re

Cus

tom

er In

telli

genc

e la

yer

Consumers

Tou

ch-P

oint

s

POS Network Shops

Portal/ online Online

Communication Channels

Call center Inbound/ outbound

Email Electronic communication

Personalized offers, prices

Automated recommendations

Better customer handling,

personalized offers,

loyalty scenarios


CAS/R at a glance

Online market scanner An intelligent engine able to gather online product info

Configurable set of target online stores

Hosts 10s of thousands of products, scales easily to 100s

Synchronizes products (price & status update) multiple per hour

Maintains a rich database with product info, price and availability history

Invisible to system administrators

Price comparison engine Search engine, similarity matching, price analytics

Automated product Matching using text mining, > 90% in accuracy

Enables dynamic pricing models

Rule-based price alerting engine

Sophisticated reporting & Business Intelligence infrastructure

A compact, interactive application layer

Numerous online components and add-on's

CAS/R Post-processing & aggregation

Search & comparison functions

Analytics & Business Intelligence

The web On-line retailers

Public domain info

Retailers Used for product management

Price strategies

Customer handling & Loyalty


CAS/R main functions

Organize product catalogue data into a rich, report-optimized data store

Browse and model detailed price history

Able to accept feeds with competitor data

Able to scan the market (enlisted competitors) every hour

Able to automatically match products based on fuzzy similarity measures

1

With formal specs, prices from product

catalogue

2

Fuzzy algorithm able to match products even with significantly different naming

structure and representation


CAS/R overview

1

3

Product navigation tree, search as-you-type

functionality, list management (user defined lists

of products)

Clickable stats on matching

outcome, market availability & stock

information

2

The set of products satisfying user defined

criteria against with configurable set of

columns


1

3

Product search & navigation engine Working product set, overview, key-

statistics

2

The set of competitors offering the product,

along with prices etc.

4

The actual product as offered by the selected competitor

CAS/R overview


Reporting & analytics

Standardized reporting on price history, catalogue etc.

Competition analysis reporting

Dynamic reporting and analysis through cubes

Able to integrate with standard BI Environments

1

Each product is listed and highlighted against

competitor offerings and price distance


Integration with 3rd party sites

Automated product release every hour to Skroutz.gr or similar

Ability to define rules/ select and monitor the products to be released

1

2

Specialized reporting enabling overview and analysis of the

products to be released to Skroutz.gr. CAS/R also generates

impact analysis/ filtering evaluation

Detailed listing of each of the product included in the list,

colored depending on release eligibility (according to predefined

rules)


In-Browser proposal wizard

A sophisticated toolbar add-on enabling automated (rule-based) offerings to each of your existing customers, as they browse

competition:

Customer completes the first (online) purchase with Retailer Y

Upon order confirmation, Retailer Y promotes the ‘In Browser wizard’ providing certain benefits for the customer in

order to download it

Upon installation, the add-on operates in a passive mode, until the user visits one of the predefined competitor sites

Assuming that user navigates on Competitor A, for product X then the system automatically performs the following:

1. Checks the price at which product X is offered by Retailer Y

2. If the product is cheaper in Retailer Y then a friendly notification informs the user that the product is actually

available and cheaper, promoting a ‘GO’ button (which gets back the customer to Retailer Y site)

3. If the product is more expensive in Retailer Y, the system triggers the Loyalty policy and depending on

customer’s value generates a special offer for the specific customer. Suitable notification is generated

instantly

4. If the product is not available, the system finds ‘similar’ and informs the customer

Additional business rules may be defined in order to handle special cases



Proposal generated according to (a) customer’s profile (b) timing – customer’s

web navigation (c) Retailer’s Pricing/ customer-handling policies

1

Your competitor.com

http://www.yourcompetitor.com/laptops/offers/sony/vaio

Your Brand



1

Quick information focusing on (a) product pricing / offering

and (b) customer classification/ reasoning for the offering

2

Depending on rules combining customer & segmentation

data, the message can be formal, casual, in the preferred

language and tone

3 Configurable description of the specific proposal. Under

certain rules this may inform the user that this is the best price

in the market, or that this is a special price/ deal

4

Could be online, offline (for instance, send the customer to

specific shops with a proposal ID), with a specific offer validity

period

Able to release info/ invite friends to register to Retailer Y

Loyalty program, utilizing Proposal Wizard

5

Your Brand


CAS/R extensions & apps

In-Browser Wizard Automatic personalized proposals

while browsing competition

Mobile apps* Price comparison applications for

smart phones

Loyalty extensions* Able to setup loyalty schemes for

special offerings via In-Browser wizard

Market Analytics* Specialized environment for analyzing

competitors strategies & market

dynamics

Data mining models* Ad-hoc projects analyzing/ predicting

customer behaviors & market changes

Marketing datamart Centralized database for reporting and analytical purposes able to host:

Customer data, orders, sales, online behaviour data

POS network, corporate organizational structure

Product database

Customer feedback streams

Analytical applications Several applications/ models can be developed above the ‘marketing datamart’:

Customer segmentation schemes/ clustering models

Loyalty models

Specialized KPIs denoting customer base health

Complaint handling (featuring text mining for automated classification and

handling)

On-going customer satisfaction monitoring (against time per POS/ channel,

product category, employee)

Advanced data mining models

Advanced OLAP model/ BI environment


Dynamic pricing schemes

Design pricing policies –business rules leading to specific offerings, based on any combination of:

Competitor Pricing: if competitor A offers products of category C1 below a threshold then change prices by Ffunction

(absolute or relative or any valid function)

Market State: if products of category B (or specific set of) are more than D% expensive from the lower market price,

then change prices according to Ffunction

Demand indicators: if search trends/ order trends exceed a specific threshold , then change prices according to

Ffunction

Internal policies: priorities promotional logic for certain products, categories or channels

Pricing alerts

Design pricing policies –business rules leading to specific alerts, based on any combination of:

Sudden massive changes in a competitor: significant changes from competitor A on certain product categories

Pricing strategies: patterns such as cycling price changes

Extreme price: identification of price lying outside of normal price ranges

Market trends: alerts based on grouped (competitor level) changes on certain category products


Applications

Analytical models Statistical & data mining techniques against historical customer data

Market Basket analysis, association rules, purchase behavior insight. For Cross/Up sell, marketing action design,

campaign promotions, customer analytics

Sales Analytics, such as models depicting trends, seasonal patterns. For marketing & management purposes.

Customer Segmentation Organize your customers through clustering and statistical modelling

Macro segmentation schemes, a common corporate language across all customer touch-points

Micro segmentation schemes empowering certain marketing activities or promotional campaigns

Involves advanced profiling, thus providing customer insight and better understanding of the involved typologies

Based on statistical modeling & business expertise

Can be integrated via data warehouse and suitable APIs – become available throughout the enterprise

George Krasadakis

Head of engineering & product development [email protected]

No part of this document may be reproduced. Datamine owns patents, trademarks, copyrights and other intellectual property rights in this document and the presented products. This document

does not give you any license to these patents, trademarks, copyrights, or other intellectual property. Datamine is a registered trademark. ‘use.your.data’ is a registered trademark

datamine ltd Decision Support Systems

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Athens, Greece

T: (+30) 210 6899960

F: (+30) 210 6899968

[email protected]

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Competition Analysis, for RETAILERS

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