Galleria Launches Behavioral Cluster Planning™ Solution - New Three Click Clustering™ solution identifies local customer demand to drive sales -
CHICAGO – (January 12, 2010) – Galleria, the leading provider of customer-centric merchandising solutions, today launched its Behavioral Cluster Planning™ solution, a new solution that enables retailers and manufacturers to cluster stores naturally based on consumer behavior. The easy-to-use solution utilizes granular product performance data such as historic sales, rest-of-market or manufacturer information, to create optimized cluster recommendations based on each category’s unique consumer buying behavior. As a result, marketing and merchandising teams will be able to quickly identify clusters of stores with similar demand patterns, enabling them to develop truly customer-centric marketing, merchandising, space and pricing strategies.
“Historically, clustering has been a manual process, requiring the mathematical expertise of scientists. The result is often miscommunication between the mathematician and the merchant,” explained Doug Erickson, Galleria’s executive vice president of global sales and marketing. “Our Behavioral Cluster Planning solution, with Three Click Clustering™ is designed to be used directly by the merchandising and marketing teams. It enables them to utilize their expertise to identify and capitalize on unique trends, based on both bottom-up performance and top-down considerations, which would otherwise remain unnoticed using traditional clustering methods.”
The highly scalable solution and intuitive user interface enables the marketing and merchandising teams to analyze performance of categories across a chain within hours vs. weeks to create a strategic cluster strategy. With one simple click, up to 25 different clustering scenarios can be created, ranked for effectiveness, and ready for review and further analysis by the merchandising team. This process enables the team to determine the ideal number of clusters for each category and ensure the benefits of localization are always balanced against the costs of implementation. Once created, the cluster information is associated to available demographic, census and geographic data to identify which attribute or attributes are most impacting consumer behaviors.
“Galleria’s Behavioral Cluster Planning solution transforms the clustering process into an intelligent analytical process. It adds science to the art of merchandising and streamlines a pure statistical approach” said Erickson. “It’s a critical component that must be in place in order to execute an efficient customer-centric marketing, merchandising and assortment strategy to boost sales and satisfy customers.”
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