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Case

Axfood: Optimizing assortment and promotions utilising customer data

Avaus implemented an end to end solution for customer centric category management. The solution included advanced analytics models, as well as the tools for utilizing the insights and bring business value. The main benefits of the solution were optimizing the assortment and promotional activities, saving cost and driving profitable customer behavior with the same resources.

Challenge

How to make use of customer data to optimise store assortment and promotions.
Which promotions are profitable? Are promotions driving the desired customer behavior? What articles can be removed from the assortment? These questions couldn’t be answered by the current tools focusing on monitoring product sales – customer data was needed to track customer behavior over time.

Solution

Optimizing the category management process by building new capabilities within analytics, customer segmentations and tools for decision support. For example, advanced analytical models were developed to measure impact on customer behavior such as switching, extra store visits, basket size etc. for each promotion. In addition, new dynamic and behavioral segmentation models such as share of wallet, life style etc. to create deeper insights on the impact on specific customer groups. Insights was then packed in a user-friendly tool to support category and campaign managers in optimizing their work.