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Company Overview
Founded in 1966; based in Minneapolis, Minnesota
$50+ billion revenue, Fortune 100 company
World’s #1 Consumer Electronics retailer
4000 stores* in Americas, Europe and China
180,000 Employees
* 2430 Carphone Warehouse stores
Locations
STORE COUNTS
BEST BUY
U.S. 1092
Mexico 5
UK 2
Canada 66
GEEK SQUAD
Stand-Alone Stores 5
BEST BUY MOBILE
Stand-Alone Stores U.S. 98
Stand-Alone Stores Canada 4
FAMILY OF BRANDS
The Carphone Warehouse 2430
Five Star 158
Future Shop 144
Magnolia Audio Video 6
Pacific Sales 35
AudioVisions 3
The CIU Purpose and Mission
What is the value of Consumer Insight?
Consumer Insight is information about consumer behaviors, attitudes and values which is derived from research, employees, and data analysis and is directly relevant for the growth of a business
We define consumer insights as finished intelligence that drives the business.
CIU Mission Statement
To ensure locally relevant consumer insights are generated, shared, understood, and used in driving
business actions in service of the consumer and growth of the global
enterprise
CIU Vision Statement
Providing a clear, relevant, actionable, measurable, and trusted
view of the consumer to the enterprise
CIU Analytics as a capability includes…
• Customer segmentation
• Purchase path and purchase basket analysis
• Descriptive and differential statistics
• Predictive modeling
• Constrained resource optimization
• Test and measurement
• Market share measurement
• Econometrics
What it takes to provide quality analysis
Translation/
Communication
Analytic Talent
Analytic Tools
Data Accessibility
Data Architecture
Hardware
Stop Guessing:
Analytics Can Tell You Who Your Customers Are
Age + Income +
Geography Preferred Product
Categories Preferred Channel
Participation in Loyalty
Program Use of In-House
Credit Card Use of Service
Programs
Return / Exchange Behavior Breadth of
Categories Shopped
Length of Time as Customer
Recency + Frequency +
Value
Response to Media
Time until Repurchase in Key
Categories
Annual Spend Level
Annual Transactions
Econometric: Real-estate &
Unemployment
• Start with 30-40 modeled variables – “Feature Vectors”
• Each feature vector is like a gene, which describes a facet, or set of customer behavior traits
• 8-15 Feature Vectors are used to define Action Clusters, all 40 can be used to create sub-groups
Most segmentation approaches only focus
here
5-dimensional typical segmentation ≈ 16,000 views 12-dimensional Action Clusters ≈ 3,138,000,000,000 views 30 Feature Vectors ≈ 17,400,000,000,000,000,000,000,000,000,000 views
Case Study on Decision Optimization: Foresight
Foresight optimizes resource investment against the Action Cluster portfolio to maximize business objectives. It includes dimensions of customer strategies (or initiatives), media types and geography, and is constrained by budgets and policies.
Customer
Optimally Funds Across Action Clusters
Customer Strategies
Articulates and Optimally Funds Top Initiatives
Media Types
Computes Optimal Media Effectiveness
Annual Budget
Allocates Against Policy and Budget Constraints
Geography
Allocates to Stores / Regions / DMAs
Bounded By
Budget Constraints
Optimize
Across
Available Media
Optimize Across Identified
Strategies
Optimize Across Customer
Action Clusters Clu
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Optimize
Across
Geographies 80,000+ Total Decisions