8/12/2019 Leveraging A Balanced Scorecard For Performance Analysis | Blueocean MI

1/2

Client: Majorretail chain with

mulple outlets

Industry: Retail

Business Impact:

Aconable insights

Drive loyalty

www.blueoceanmi.com

Leveraging balanced scorecard for performance analysisto identify drivers of store-level financial performanceand deliver brand promise

Business Challenge

The client, a major retail chain with mulple outlets, was in need of a balan

scorecard model that would enable its senior leaders to understand the driv

of store-level nancial performance and empower the delivery of the compa

brand promise (excellent customer service, superior product quality and ran

and a highly enjoyable shopping experience). The clients hypothesis was t

the delivery of its brand promise would directly impact customer loyal

supporng client retenon, repeat purchasing and cross sales. They also belie

that eecve delivery of the promise was driven by employee sasfacon

producvity.

To prove their hypotheses and achieve their objecve, the client needed to m

a multude of dierent research studies past and present - into one sindatabase, and then analyze that data at both the customer and store level.

Soluon

Our model was developed and validated in three phases:

Phase 1: Business & Data Understanding

The inial phase began with in-depth interviews among senior leaders

selected store managers, along with employee focus groups. In addion

past research was reviewed and a number of data sources were idened to

included in the model. Together, this entailed:

CaseStudy

http://www.blueoceanmi.com/http://www.blueoceanmi.com/http://www.blueoceanmi.com/

8/12/2019 Leveraging A Balanced Scorecard For Performance Analysis | Blueocean MI

2/2

Customer surveys - an overarching customer loyalty

survey, departmental surveys, a returns policy

survey, an alteraon quality survey and a frequent

shoppers program survey

Customer spending data - data on charge card

spending, loyalty program acvies and various

store-level nancial metrics (e.g. store revenues)

Employee metrics - research on a wide range

of employee aributes including sasfacon,

commitment, movaon, awareness of the customer

sasfacon drivers, their sense of empowerment

and views on training and incenvizaon

Phase 2: Data Preparaon

In the second phase, Blueocean Market Intelligence

warehoused all of the data using the Link manager plaorm

to create a linked data set -rst, at individual customer level

(e.g. Customer Xs sasfacon and loyalty linked to Customer

Xs spending) and then at store level (e.g. Total customerspending and revenues for Store 1 linked to total customer

sasfacon).

Phase 3: Modeling & Evaluaon

The nal phase involved the applicaon of various

mulvariate techniques with customer-level and store-level

data stored in the Link database to validate hypothesized

relaonships between nancial data, customer loyalty and

employee metrics.

Outcome: Aconable Insights to Drive Loyalty

The metrics produced using the Link system provided

specic, aconable insights into the relaonship between

the companys employees and its customers. Examples

include:

Customers idened as loyal spent 65% more on

charge cards relave to those who were idened as

non-loyal; they were also 50% more likely to engage

in the loyalty program and were less open to sales

and discounts

The cosmecs department acted as a great entre

to the overall shopping experience - so, customers

who were sased in cosmec department surveys

also tried other departments and tended to provide

higher scores in the overall metrics

Over a 2-year period, loyalty scores had improved by

16% on the loyalty metric to 26%. There were also

clear linkages between store revenue / protability

and employee / customer metrics

Blueocean Market Intelligence generated a separate

report using the Link BI reporng plaorm for each

store that included aggregated customer spending

data and employee scores at the store level, enabling

store managers to see the direct relaonship between

employee management and store revenues.

Based on the results, workshops were held with store

managers to drive improvement, while impact-planning

tool kits were developed to facilitate workshops and

train-the-trainer programs.

2014 Copyright Blueocean Market Intelligence. All Rights Reserved.

About Blueocean Market Intelligence

Blueocean Market Intelligence is a global analycs

and insights provider that helps corporaons realizea 360-degree view of their customers through data

integraon and a mul-disciplinary approach that

enables sound, data-driven business decisions.

Since we live in a highly dynamic and mul-

dimensional world, we believe the most eecve

business decisions come from a synthesis of data

streams and not from one-dimensional sources.

Using our 360 Discovery approach, we ensure the

comprehensive use of all available structured and

unstructured data sources, enabling us to bring

the best to bear against each engagement. Strong

decision support is enabled through a combinaon

of analycs, domain experse, engineering and

visualizaon skills brought together in harmony.

Leading companies have beneted from our

partnership with nancial growth, 360 views of their

markets and compeon, and improved customer

acquision, sasfacon and retenon.

For more informaon or to request a consultaon,please email info@blueoceanmi.comor visit us

online at www.blueoceanmi.com.

Seale | Phoenix | Denver | Chicago

Cincinna | Bangalore | Dubai | London

http://c/Users/mansoor.rp/AppData/Local/Adobe/InDesign/Version%207.5/en_GB/Caches/InDesign%20ClipboardScrap1.pdfhttp://c/Users/mansoor.rp/AppData/Local/Adobe/InDesign/Version%207.5/en_GB/Caches/InDesign%20ClipboardScrap1.pdfhttp://c/Users/mansoor.rp/AppData/Local/Adobe/InDesign/Version%207.5/en_GB/Caches/InDesign%20ClipboardScrap1.pdfhttp://c/Users/mansoor.rp/AppData/Local/Adobe/InDesign/Version%207.5/en_GB/Caches/InDesign%20ClipboardScrap1.pdf