The interim manager was hired by one of Europe's largest shoe retailers to help with the digital realignment of the business model. The digital and technological developments and opportunities had previously been defined by a management consultancy. This resulted in a need for action with a focus on the topics of customer insights and data & analytics.
The interim manager was commissioned to set up a customer insights infrastructure and define the associated data pools. The aim was to increase the purchase rate and cross-selling by personalizing the customer approach and optimizing the product range. In addition, the frequency (online and offline) of new and existing customers was to be increased by intensifying segment-specific marketing activities.
Proof of concept for customer insights using the example of prioritized use cases
In his role as Interim Chief Digital Officer (Interim CDO), the Interim Manager managed the e-commerce, customer club and customer service areas in day-to-day business. He was also responsible for setting up the "Data & Analytics" department.
At the start of the mandate, the responsibilities for customer insights were not clearly defined. There were numerous data silos. Some of these data packages were analyzed, others were not. There was also no overarching procedure defined. In addition, technical and human resources were limited.
In order to provide a "proof of concept" in the short term, the interim manager prioritized specific use cases, such as processing customers at risk of churn. Various factors were taken into account during the prioritization process. These were primarily feasibility in terms of the interaction between different data silos, timing, investment and the business model. At the same time, the interim manager developed the target image for an internal "Customer Insights Center of Excellence" and the roadmap for implementation.
Scoring and ABC analysis enable specific targeting of existing customers
In a further step, the interim manager implemented 3 quick-win measures whose key performance indicators (KPIs) were tracked and analyzed in detail.
He divided the customers into different segments according to descending importance using a scoring method based on KPIs such as turnover and frequency (ABC analysis). By targeting customers with individual offers and special conditions via a newsletter, almost 10 percent of these customers were also activated within a short period of time. Other quick wins included the activation of customers at risk of churning and the conversion of open or "forgotten" shopping baskets in the online store.
Use cases specified and first data silos synchronized for real-time analyses
One of the challenges of this interim mandate was to communicate the benefits of customer insights and data-driven business models to the company. The successful implementation of the quick wins made a decisive contribution to this. The more far-reaching use cases were then specified in a milestone plan and agreed with the board. At the same time, the interim manager initiated steps to synchronize the first two data silos with each other and implement real-time analyses.
Interactive tool set up for uncomplicated analysis of data
In order to give the entire company more transparency about customer behaviour and thus increase internal acceptance, an interactive tool was set up for the uncomplicated analysis of data. This tool supports users in transforming data into actionable insights.
The digitalization project was a major challenge for the company and a process for the entire company. All employees supported the process and actively accompanied the change.
