Retail Servicing: A Case Study
A leading multinational manufacturer wanted to determine the optimal deployment and utilization of retail servicing personnel.
- The manufacturer wanted to understand how to best utilize the field sales force to maximize ROI.
- Several deployment and utilization models were tested.
- APT’s Test & Learn™ software measured lift of the overall program, and through drill-down analyses, uncovered insights with implications toward a tailored implementation plan.
The Company
A category-leading multinational manufacturer
The Challenge
The client was unsure about the best allocation of field sales force resources. While many measures of the effectiveness of the field sales force existed within the company, management wanted a scientific approach to quantifying the impact of various service levels on sales at its customer’s retail stores. Of particular interest was the frequency of visits to stores. Should stores be visited weekly or bi-weekly? Which approach yields the greatest net return? And during these visits, how could reps best allocate their time? Which servicing elements generate the greatest sales lift?
The Solution
With the help of APT, the client ran multiple tests designed to assess the impact of varying the deployment and utilization of retail servicing personnel.
The overall impact of the various tests was quantified using APT’s Test & Learn™ software. POS sales lift of the overall initiative was more than eight percent. Parsing the results showed a range of benefits to correcting on-shelf, in-store display, and inventory issues. APT’s software identified the incremental value of different service levels and inventory adjustments. APT highlighted a pattern when examining stores missing the most inventory at the time of the inventory recount: generally these stores were located in areas with higher population densities.
The ROI of the servicing program could be further improved by focusing resources on a subset of stores. Specifically, APT's software determined that stores with the following characteristics generated the greatest return from store servicing:
- Higher sales volume
- Lower price points for a particular brand
- Located in areas with higher population density
- Located in areas with lower median age
- Located in areas with lower income
The Results
APT’s Test & Learn™ software identified a targeted list of stores and optimal servicing/inventory frequency for each. This drove tens of millions of dollars in incremental sales, while minimizing servicing costs.
