Know what challenges lie ahead.
When you know what challenges lie ahead for your brand, you can take action to stay ahead of your competition.
Our Toolbox has powerful techniques we use to create brand performance insights.
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Success story: Crafting marketing and merchandising strategy.
Major retailer stays ahead of the curve, anticipating changes in category sales by utilizing economic consumer confidence indicators.
One of the world’s largest retailers needed to be able to understand the drivers of consumers’ visits and sales over time so as to better predict sales trends. These drivers included consumers’ assessments of the macro economic climate as well as everyday household dynamics as all might affect behavior.
Lynx designed a comprehensive tracking approach which included a variety of measures from primary and secondary sources. The centerpiece was a monthly survey of consumers’ household financial condition, approaches to spending and specifics regarding their current and anticipated future shopping habits at the retailer and its key competitors.
A dashboard of key metrics, including a unique, proprietary consumer confidence measure was created from the ground up, forming the heart of this long-term tracking and analysis effort. This toolkit distilled the consumer mindset, tracking items such as changes in gasoline prices, assessments of their discretionary income, inflationary fears and many others, with changes in spending habits.
With this comprehensive mix of information, Lynx was able to (a) identify the key drivers of consumer confidence among the retailer’s core shopper base, and (b) provide detail as to the categories of the retailer’s product mix that were most correlated to changes in confidence. This allowed our client to anticipate changes in sales as consumer temperaments fluctuated.
The project spanned over six years, becoming a high-value trend tracking tool and gained a far-reaching audience including distribution to the highest executive levels of the organization.
Consumer insights, marketing and division managers utilized knowledge from this initiative to influence marketing and merchandising strategy. Additionally, public relations used insights generated from the program to influence public and government policy. Lynx frequently mined this database to address and consult on ad hoc issues and business questions.