Case Studies

Significant earnings enhancement for the largest retail chain in South Africa

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PROFIT INSIGHT helped this large retail chain increase revenue by over $2.00 per active account, while increasing the perceived value with its customers.

The Business Challenge

South Africa’s largest retail chain was challenged to improve use of their store card to increase sales volume and average transaction values. The retailer did not want to increase the cardholder’s cost of using their store card and wanted to focus on optimizing customer behaviour through spend and profitability analysis. The client defined a shorter than average timeframe to complete the engagement due to the upcoming year-end holiday period.

How Profit Insight Helped

Within in two weeks of starting the engagement, Profit Insight quickly identified numbers value-add retail strategies to drive increased spend. The engagement team recommended marketing/loyalty campaigns through a detailed segmentation analysis leveraging current and past data components.

Engagement Results

Three “quick-win” ideas were implemented prior to the holiday period, increasing earnings per card by just over $2 within the first quarter with no negative impact to the customer. Five more ideas worth an average of $3 million per year were implemented shortly thereafter, enabling the client’s ability to maintain and improve spend results following seasonal periods.

Insights

  • Initial focus was on earnings leakage and the development of new campaigns to drive retail sales.
  • Profit Insight worked with the client’s store card team to ensure regulatory compliance and eliminate any market reputation risk to the bank.

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