Halverson group credentials

HALVERSON GROUP. COPYRIGHT 2010. ALL RIGHTS RESERVED.

HALVERSON GROUP

Advanced Analytics to Improve the Customer Experience


Halverson Group

•  Firm founded in 1997 in Chicago by Ron Halverson Group, Ph.D.

•  35 employees

•  Multidisciplinary team

•  Highly specialized focus on in-store retail and service research

•  Signature innovation: Video and Audio-Enabled Behavioral Analytics


Our Exper ience

Agencies

•  McCann Erickson

•  Arc Worldwide

•  DDB

•  Euro RSCG

•  Leo Burnett

•  Fitch

•  TBWA\Chiat Day

•  McMillan Doolittle

•  ShopperTrak

•  Kroll International

Retail/Service

•  McDonald’s

•  DirectBuy

•  FedEx Kinko’s

•  Toys R Us

•  Bank of America

•  Home Depot

•  Albertsons

•  Famous Footwear

•  ALDI

•  H2O+

Brands

•  Activision

•  Coca-Cola

•  Levolor

•  Bayer

•  Clorox

•  Elkay Manufacturing

•  Mead Johnson

•  Gardenburger

•  Johnson & Johnson

•  Newell Rubbermaid


Our Focus

Service/Retail: Macro Analytics •  Focus on customer engagement with associates, environment,

objects, products and services

•  Provides insights required to increase capture and conversion rates, sales and service utilization, brand loyalty and habituation

Brands: Micro Analytics •  Understand actual customer behaviors, motivations and barriers to

purchase in real retail environments

•  Pinpoint opportunities to build brand awareness, product knowledge, customer loyalty, sales and market share

Agencies and Design Firms: Design Evaluation •  Partner to establish innovation targets and baseline performance

•  Represent field retail realities to ensure solution scalability and sustainability

•  Evaluate success from multiple perspectives: customer, employee, operational and financial


Your Quest ions

Customer Insight •  What are the decision and purchase patterns of customers? What are the key

levers and triggers of increased purchases?

•  How do customers interact with employees? What employee actions translate into higher conversion or higher sales? How does employee behavior impact overall brand perception?

•  What is the impact of new designs or solutions on the customer’s experience? How do new layouts, configurations, installations, kiosks and sign systems affect our ability to operationally deliver what customers expect?

Retail and Service Operation •  What aspects of the service experience drive customer satisfaction the most?

•  Which specific customer interactions lead to attrition, advocacy, and higher conversion?

•  When should we focus on service instead of product, price, or promotion?

•  Will our service improvement solutions have the impact we need them to?


Your Quest ions

Staffing and Positioning •  Are we currently staffing for profitable growth from hour to hour?

•  Have we defined the roles and accountabilities for employees and managers to ensure that the right people are working on the right things?

•  What are the key drivers that determine the number and type of people that should be scheduled for each hour of the day for my business?

•  Do we have effective labor planning tools and processes to ensure stores get out ahead of staffing up or down appropriately to meet seasonal changes in demand?

Site Development Analytics •  What are the key location and site factors we need to consider when building

new retail locations?

•  Which of our current branches have the greatest upward sales potential and how do we capture it?

•  How do we prioritize reinvestment capital to get the biggest bang for our buck?


Our Approach: Col lect ion

Shop Alongs

CustomerIntercepts

Video/AudioAnalytics

POSData

Capture actual behaviors and uncover motivation of customers and employees in real environments


Our Approach: Non-Disrupt ive Insta l lat ion

Midwest Supermarket Three handy cams placed on shelves and five held by researches to assess consumer motivation, store penetration, and queue dynamics.

Specialty Retailer Fifteen in-ceiling network-based cameras installed in less than 2 hours. captured, coded and analyzed 2500 customer shops per store.

Big Box Retailer Nine strategically positioned hard drive based handy cams across seven stores and four store formats. research focused on store navigation, signal optimization and queue dynamics.


•  Codify video/audio data

•  Construct survey database

•  Transcribe & codify interviews

•  Cluster observations/notes

•  Organize artifacts

•  Integrate unique client data

Our Approach: Integrat ion


•  Data mining

•  Statistical modeling

•  Forecasting

•  Themes development

•  and validation

•  Data visualizations

Our Approach: Analys i s & Synthes is


Our Approach: Ideat ion

•  Represent on-the-ground realities for brand innovation efforts

•  Frame high-reward opportunity areas

•  Evaluate success of solutions—Are they changing behavior? Are they producing unintended consequences? Are they scalable?

Situation

•  Specialty chain’s conversion rate historically flat

•  Too many missed sales opportunities

Case Study: Major Shoe Reta i ler


Engagement Objective: Find two more buyers per one hundred customers

Approach

•  In-depth study of 10 stores

•  Installed 14 IP video cameras and 5 wireless microphones, synced in video storage system

•  Applied video/audio analytics methodologies to capture and code hundreds of customer groups and employee-customer conversations

•  Conducted 600+ customer exit interviews

•  Performed 80+ customer shop alongs



Findings

•  Low and no-impact associate interactions with customers

•  Ongoing promotion underleveraged and underutilized

•  High percentage of inventory “unavailable” to customers

•  Key shopper segment left underserved

•  Associate rewards and recognition not aligned with conversion goals



Halverson Group recommendations to surmount these conversion barriers accepted at CEO level

Result

•  2010 YTD same-store sales up 15.5%

•  Conversion rate up to highest percentage in decade



Performance was driven by...a heightened emphasis on conversion activities at our stores, which resulted in high single-digit growth in this key metric.

-President, Major Shoe Retailer


Case Study: Leading QSR Restaurant Chain

Situation •  Weak sales plunges stock price to a 7-year low

•  Leadership calls for $300 million investment to reverse trend

Approach •  Mined 5 million customer feedback records to identify opportunity: order

inaccuracies a major source of company’s problems

•  Installed cameras and microphones in restaurants and analyzed 12,300 customer-employee interactions to understand inaccuracy

Result •  Found inaccuracies to be 3x higher than mystery shop data

•  Identified that inaccuracies occur at point of order, vs. when food is made or orders are delivered

•  Initiated enterprise-wide innovation: new POS, new audio, new menu and new staffing guidelines

•  Accuracy became key initiative of CEO and chain ranked “best drive-thru” by QSR Magazine in 2008, and most improved in order accuracy from previous year (+4%)


Case Study: Top Pr int ing/ Imaging Company

Situation •  Top printing and imaging company looking to energize its performance culture.

•  Executive leadership engaged Halverson Group to establish “common language” around great performance to improve the quality of decisions about talent across international organization.

Approach •  Assembled seasoned team of organizational psychologists to dig deep with

executives to understand their historical barriers to candid performance conversations and decisions and to articulate their desired performance culture.

•  Lead the development of core and leadership competencies and targeted behaviors to embed them into tools for performance discussions, talent development, and rewards and incentives.

Result •  Delivered powerful toolkit designed to enhance the performance culture and improve

the quality of talent discussions and decisions.

•  Key components of solution were core and leadership competency model, a roll out and communication plan, and a competency-based tool to enhance the talent selection and development process.


Case Study: Major Toy Reta i ler

Situation •  Global toy and baby retailer watching market share erode to Wal-Mart

•  Retailer pinning future on a new format that combines children’s toys and baby products

•  Several new formats are built, but require evaluation to determine which one works best

Approach •  Study key attributes of 2 traditional and 5 combo stores

•  Track shopping experience of 3000 guests, intercept 200+ customers, interview and shadow 50+ employees

•  Perform video and audio analytics on customers and employees

Result •  Provided executives with a rigorous comparison of formats

•  Recommended a particular format strategy for retailer to pursue that was adopted by the company

•  Implemented solutions to enable record holiday performance

“I hire Halverson Group to solve the problems that really matter”

– SVP Innovation, Global QSR Restaurant

“Halverson Group is shopper analytics on steroids”

– VP Stores, National Shoe Retailer

Typica l Engagement


•  Three to twelve stores

•  $25-35K per store

•  Includes technology, in-store researchers, video/audio coding, analytics and synthesis

193 North Marion Street

Oak Park, Illinois 60301

www.halversongroup.com

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Halverson group credentials