Retailing, Linking Data Sources

 

BUSINESS SITUATION:

A leading retailer with hundreds of stores concentrated in a region of the US wanted to achieve the highest return on investment for planned expenditures.

 

RESEARCH OBJECTIVES:

Our client wanted to understand if there are different and similar drivers of customer satisfaction for different locations of the same retail store and determine what accounts for the variations.

 

METHOD:

Burke conducted a linkage study using store-level data about employee engagement, customer satisfaction, financial performance, shrinkage (inventory loss/reduction) and neighborhood demographics.

 

OUTCOME:

Through linkage analysis, we identified the impact of satisfaction with various store departments on overall shopper satisfaction with the retailer.  We also identified how over shopper satisfaction was affected by the performance of store associates and by store features (e.g. safe and convenient parking).  Finally, we studied the impact of neighborhood demographics such as median household income and family size on overall store profitability.  This client used the results of the linkage study to make critical decisions about new store locations, renovation of existing stores and closures of poor performing stores.