Category Management Insights Overview
Retailers and consumer goods companies are collecting an increasing amount of data, but are encountering significant challenges in using this data to make better merchandising decisions. APT Category Management Insights is a software that aggregates data in one central repository and provides automated, analytically robust insights for Category Managers. Instead of spending time manipulating or waiting for data, Category Management Insights leverages advanced algorithms to accurately and rapidly answer the most important business questions for each organization. Further, Category Management Insights never provides just static reports; decision-makers can always dive into each output to gain a more granular view of performance.
- Category Performance: How is my category performing overall? Are we on track to meet targets? What factors are driving my performance? What is the difference in shopping behavior between different customer segments?
- Optimizing Promotions: Was the promotion I ran last weekend profitable or did customers simply cherry-pick the promoted items? Which types of promotions drive customer loyalty and larger baskets? Should we target promotions to a subset of stores?
- Assortment Optimization:What is the impact of adding or removing SKUs? How can we take the learnings from the initial launch of a product to quickly crystallize our strategy for that item? When removing items, how can we ensure that we don’t remove items that attract key customer segments or shift loyalty? APT addresses these challenges by answering questions like:
- Does introducing a new low-priced offering cannibalize sales of higher-margin items?
- What is the repeat purchase pattern of a customer who buys a new product category?
- Which types of customers are responding to the newly launched item? Which types of stores respond best?
- Before deciding to remove an item, can we understand what the life time value of its shopper base is? How loyal to the product are they?
Unlike other analytics software that require advanced statistical knowledge, Category Management Insights is designed for business users and provides analysis that directly answers key business questions. Key benefits include:
- Basket and Customer Insights: Category Management Insights goes beyond simple sales reporting by providing category managers with basket and customer-level insights. These insights help decision-makers understand which items are associated with larger transactions, which types of shoppers are attracted by a new program, and which parts of the assortment drive customer loyalty.
- Automated: Insights are generated automatically after APT detects they’ve occurred. Compiled insights are then emailed to decision-makers at a set cadence. Analysis of category performance, promotions, and assortment changes that used to take analysts days or weeks to complete is now automated.
- Flexible: Static reports don’t let decision-makers drill into the data and answer their next business question. Category Management Insights’ flexible interface allows users to dive into any result and answer additional questions on the fly.
- Analytically Advanced: By only looking at overall performance, decision-makers risk leaving money on the table. For example, a program may work really well in some situations but not others. Category Management Insights automatically identifies differential performance so that executives can tailor and target their strategies.
- Central Repository for All Data: Category Management Insights aggregates all of your important data in one place, so no time is needed to query data or write new code. With data in one place, organizations can achieve a 360 degree view of their customers and stores and identify previously unseen performance drivers.
- Standardized Best Practices:Category Management Insights scales to fit the analytic needs of the entire organization, providing one consistent version of the truth. Senior decision-makers can set customized analysis templates for their teams. APT consultants also provide their perspective on best practices for analysis based on years of experience working with leading retailers and consumer goods companies.
Category Management Insights is ready out-of-the-box.
- Financial performance data (e.g. sales by product by day or week, or transactional data, where available)
- Known characteristics of your stores and customers (APT does not incorporate any personally identifiable information)
- Local demographic data
- Weather data
- Competitor locations
- Retail sales data for the areas immediately surrounding each store (from the APT Index)
- Other third party data sources