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Doing More by Doing LessLessons Learned in Customer Insight

Tuesday, May 19, 2015

Jason Kappel, Director of CRM, GameStop

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Who is GameStop?

CANADA

UNITEDSTATES

EUROPE

AUSTRALIANEW ZEALAND

We are a family of retail brands that makes the most popular technologies affordable and simple.

• 6,600+ Video Game and Technology Brand Stores

• Dominant Leader in Global Video Game Category

• Operations in 14 Countries

• Fortune 500 & S&P 500 Company

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We’re a $9B Specialty Retailer

Video Games

#1 Market Share

Publishing

#1 Digital Magazine

Top 10 Mobile Publisher

Digital/MobileGaming

$900M Digital Business

Wireless/Technology

Fastest Growing AT&T Wireless Reseller

AT&T National Dealer

Largest Authorized Reseller

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What Makes GameStop Unique?

Loyalty

40,000+ Passionate Associates

Multichannel

Buy / Sell / Trade

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30M+ US Members

PowerUp Rewards Engaging Customers

1 in 5U.S. PENETRATION

70%+

% OF SALES

3xSALES

5xPROFIT

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My Team• Customer Analytics

• 2 Internal analysts (1 vacant)• 2 External analysts

• Direct Channel Management• 3 Managers (1 vacant)

My Team and Our Partners

• Marketing• Promotions• Loyalty and Credit Card• Strategy

• Merchants• Finance• Executive Team• Real Estate• Vendors

Our Partners and Clients

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May be Similar to Yours

Our Challenges

IT resources are constrained for reporting and

data manipulation

Analysis demand is greater than the throughput

Complexity of analysis requests

or business questions are

increasing

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Our Needs

Decrease Dependency

Increase Throughput

Photo: U.S. Army Corps of Engineers

Increase Capability

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Our Needs

Decrease Dependency

• Remove IT from basic tasks such as reporting and data loading

Increase Throughput

• Reduce need for complex coding (SQL)

• Reduce time spent on repetitive tasks

• Share analysis products and procedures across the team

Increase Capability

• Focus on the problem not manipulating data

• Provide insight versus analysis results

• Increase analysis capability and skillset

Doing Less Doing More Doing Less

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Doing Less to Do More

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Minimize Time Spent on Reporting

• Challenge• Half-day committed to reporting• Frequent changes coming from the business

• Solution – Automated using Tableau; now less than 1.5 hours• Results – Hope to decrease further with full automation and Alteryx

processing

Doing Less – Increasing Throughput

2012 2014 2015

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Contingency/Succession Planning• Alteryx Apps

• Franchise and Affinity SKU finder• Console Ownership Definition &

Export• Model Export• Audience File Export• Zip code finder

• Outgoing analyst built Alteryx apps• Automate processes• Instrumental in transition

Doing Less – Increasing ThroughputAutomate Routine Tasks and

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Automate Routine Tasks – Zip Code Finder

• Challenge: Changing store base• Identify PUR members in zip codes close to new stores

• Solution: Simplify to single input of a stores latitude and longitude• Results: 30 minute process reduced to less than 5

Doing Less – Increasing Throughput

Enter storeLatitude and

Longitude

Output file Visual Check

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Reduce Dependency on IT to Load and Join External Data

• Challenge• Large quantity of locked phones• Data from the refurbishment center

• Solution• Loaded external data without IT assistance• Matched device and member data in Alteryx

• Results• Output file used to contact customers about

unlocking their phone• Informed a larger decision on how to

proceed with locked devices

Doing Less – Reducing Dependency

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?

Reduce Dependency on IT to Load and Join External Data

• Challenge• Insight into new brand

customers• Solution

• Experian data package• Analysis of external customer

data• Results

• Size of the shared customer base

• Profile of Simply Mac customers

• Compare to PowerUp RewardsTM members

Doing Less and More – Reduce Dependency / Do More

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New Analysis Capability – Market Basket

• ChallengeEvaluate potential for new marketing program to support interactive game figures

• SolutionUtilized Market Basket function to analyze multiple combinations versus only frequency

• ResultsProposed program did not exhibit enough opportunity to support launch

Doing More – New Capabilities

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New Analysis Capability – Market Basket

BEFORE• Frequency counts

• Item A• Item B

• Limited visibility into correlation of item pairs

Doing More – New Capabilities

1 2 3 4 5 6 7 80%

25%

50%

75%

Percent of Buyers

Count of Item B

1 2 3 4 5 6 7 80%

25%

50%

75%

Percent of Buyers

Count of Item A

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New Analysis Capability – Market BasketDoing More – New Capabilities

LHS RHS SupportConfidenc

e Lift{ } Item 1 0.85 0.84 1.00

{ } Software 0.55 0.46 1.00

Software Item 1 0.40 0.71 0.80

Item 1 Software 0.35 0.39 0.80

{ } Item 2 0.35 0.29 1.00

Item 2 Item 1 0.30 0.91 1.10

Item 1 Item 2 0.30 0.32 1.10

Item 2 Software 0.20 0.65 1.30

Software Item 2 0.20 0.41 1.30

Item 2,Software Item 1 0.15 0.96 1.15

Item 1,Item 2 Software 0.15 0.68 1.50

Item 1,Software Item 2 0.15 0.55 1.90

AFTER• Frequency of purchase

• Incidence of paired purchase

• Multi-item purchase relationship with other products

• Lift of occurrence v. random chance

ExampleNEW

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Doing More – Doing it Better

30M+ US Members

Photo: James Cridland

Our Challenge – Grow the Audience

?

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Audience Selection Experiment – Title Affinity using Market Basket

Doing More – Doing it Better

Individual Title AffinityFranchise Participation

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Audience Selection Experiment – Title Affinity using Market Basket

Doing More – Doing it Better

Individual & Multi-Title AffinityFranchise Participation

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Audience Selection Experiment – Title Affinity using Market Basket

Doing More – Doing it Better

Individual & Multi-Title AffinityFranchise Participation

?TESTING

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Summary

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Doing Less

Eliminate Low-value Tasks

• Standard Reporting (~14 days)

• Apps for recurring need (~14 days)

• Waiting on IT (?? days)

• Ramp of new employees (?? days)

Doing Less to Do More – In Summary

Doing More

Provide Business Insight

• New analysis capabilities

• New insight (i.e., Demographics)

• Interpret and deliver implications

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My Internal Messages

• IT – Free my team from the challenges of data manipulation or lack of tools so they can deliver insights that will help drive the business

• Marketing – Partner with us often and early so we can help inform your planning

Doing Less to Do More

THANK YOU!

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