Situation:
In today’s fast-changing landscape, retailers don’t have time to conduct lengthy in-store testing with questionable results. Speed to market and accurate testing make the difference between original and differentiated products.
Choosing the right retail assortment is becoming increasingly difficult. Shelf space is being reduced, supply chains are being interrupted, and customers are getting more aware. Retailers can no longer determine the success of an assortment only based on historical sales and turn figures. Predictive technologies must be used to improve an assortment before it hits retail shelves in order to outperform the competition, decrease manufacturing costs, and increase speed to market.
Action:
rue21 decided to replace in-store testing with First Insight's voice of the customer analytics to understand their product assortment, pricing strategies, and customer segments, driving speed and financial results.
Outcome:
By working with First Insight, rue21 was able to get feedback on product assortments in two days and shorten their overall testing timeline. This change in rue21's production cycle enabled a broader understanding of their targeted customer segmentation and better pricing strategies, allowing rue21 to select winning products at a price point that matches their customer's demand, through proven, actionable data. Furthermore, rue21 was able to save $2 million in markdowns on a single product, due to First Insight's price optimization tool.
