16-Matrix analysis (CCTV)
Too much data and too little data are both blessings; one in disguise and one in open day. Just be careful for what you ask and wish for. It might come through.
We were once bullish in our respond to a client, stating that ‘the more the better’ in amount of data to receive. As we got the data and merged it with our master-databases, we ended up with 102 billion data points. Suddenly we had to rethink and recreate how to systemize and utilize data with a proactive mindset. Our beloved 2x2 or 2x3 frameworks could not comprehend our thoughts; hence we stepped up and created a 4x4 system, resulting in a 16 matrix analysis. This way the model could compare a ‘static development’, benchmark change, evaluate a dynamic trend and the velocity for every category. Based on the multi-dimensional / multi-leveled ‘Rank & Spank’ approach, we nicked it CCTV. It is open, brutal and transparent. When performing assortment optimization, The 16-Matrix Model is kind of a kinder-unique solution, evaluating SKUs along multiple dimensions and at multiple levels.
16-Matrix Analysis (CCTV)
The 16-Matrix Analysis is a clear cut multi-dimensional / -leveled analysis, absorbing static comparisons, benchmark changes, sensing dynamic trends (< 0 >) and measuring the velocity. The holistic measure gives you a score between 1 and 16, where 1 is the best, and 16 the worst.
Simple to use & Easy to understand
The 16-Matrix Model has become one of our cherished frameworks, as it is simple to use and easy to understand. It also blocks the political bias and soft-smile discussions. It is brutal, but also fair. All products that are not sold throughout the period are automatically selected out and put on a ‘grey list’. Every category can either be displayed with number or by bubble size (unless an icon is included). That way the user visualize the importance of each category more easily.
A theoretical case
Say you have a gas station, and the development was looking like the matrix below; would you be happy, content or scared?
Though it is a theoretical case, it is not too far off for one of our previous projects in Asia. Hot dogs were one of their best selling items, but was performing poorly (#16). Even beverage; hot, cold or super-cold were performing below average - all putting a stressors on poor performance.
The Green - The Yellow - The Red
There are some distinctive outcomes from every number; both in isolation and as a comparative benchmark. Products in #1 (here: lemon), are developing better than overall sales in both a 12 and a 6 months perspective. The 6 month change is also better than the 12 month change, with a result larger than 0. The ‘running’ trendline is also positive. The opposite perspectives are the output for # 16 (here: hot dogs).
Regardless of how good an analysis is; it is nothing more than an ‘invitation’ for potential action for improvement. The retailer did grab the invitation, and asked us for our advice in how to improve the overall sales for products in the ‘red zone’ (which is a natural next-step post an analysis like this). The intention was to get the ‘meaningful’ categories (read: in sales and margins) back on track. We challenged the conventional transactional selling methods, to also include the other four ways of selling. This way they would secure more shoppers into those categories.
The five ways of selling
A hybrid-attack is to utilize all five ways of selling at a given market place.
Every store is an arena for selling, and the better tools you have, the better results you get. Shoppers do have different ‘agendas’ for buying a product, and in case it is not on a ‘wish-list’, you need to take an alternative route of making it desirable. You do that by creating one or more wow-factors for strengthening the incidence.
Primary & Secondary ways of selling
The primary way of selling is the transactional way - a battle from the trenches - whereas the secondary ways of selling are more disruptive. Over time these four alternatives will be seen as transactional; hence development through a modular approach is vital. Men and women react differently to the various ways of offers. The same goes for equality across industries and categories. E.g. Men do love experiential selling when it comes to cars.
The personal best result is an exponential development of +1,350% when all ‘5-Ways of Selling’ was institutionalized together with the retailer. A modular approach built on insights, trends and experience, do tend to lift sales exponentially.
Center of the ‘plate’
As numbers are dynamic and modular, so is the way you can prepare for a meal by using a simplified ‘decision making tree’ insights. People will either eat their meal now, or they will eat it later. Some scholars like to include ‘imminent’ as an occasion (which is correct), but on the other hand, it is just a different shade of grey (for eating later).
540 ways of selling a meal
Modular Business Building is like Anagrams; you just tweak the letters for volume and value, and find a different way to improve the baseline. An anagram for ‘credit card’, is ‘bad credit’, as it is two sides of the same story. A truly fascinating and simple way of working, creating a new offer to surprise the shoppers. It is a about Scrabble and Unscrabble Scrabble. All in all, there are 540 different ways of selling a meal. Our all time record by including this, is at 10-fold normal rate, compared to when the retailer only just utilizing transactional offers.
Eating & Drinking occasions
The need-states for shoppers do vary throughout the day, and across the retail landscape. Retailers that are good at it, create incentives that result in channel blurring and a shift in purchase behavior. This dynamic approach is super exiting and is often a long-hanging fruit. No need to be a rocket scientist to make it work. Common sense fused with a modular mindset, are often the best approach for creating exponential growth. This way the retailer can drive traffic and improve incidence. This results in new shopper missions, and by that optimize the spend throughout the shopping route.
Increase food traffic through occasions
The day can be divided into nine different day-parts or occasions for eating and drinking. Each part has its own uniqueness when it comes to preferences in type and flavor, as well as the willingness to pay. The parts are dynamic, just as people has different daily routines. The mid-day ‘celebration’ (read: lunch) is the peak of the day when it comes to per cap payment. Each occasion creates different opportunities for growth. By just putting this into effect, we grew foot traffic by 300% for a retailer during a particular occasion (# 7) ->> by just offering a salty snack at an acceptable rate.
NB! The taste preferences do vary between countries and continents; hence it might vary from what mentioned here.