Actionable Insights From APT's Retail Practice
Header

Consolidation Considerations: How Retailers Can Minimize Losses from Store Closures

May 12th, 2017 | Posted by APT in Retail - (Comments Off on Consolidation Considerations: How Retailers Can Minimize Losses from Store Closures)

During the 2008 recession, 6,200 brick-and-mortar stores closed. In 2017, total store closures are expected to surpass that number, climbing to over 8,600.

Retailers are undeniably facing headwinds, from the growth of e-commerce and online competitors, the decline of the shopping mall, and shifting consumer preferences, among other factors. Yet, while the process of browsing and shopping increasingly shifts to online and mobile channels, consumers still make the majority of purchases in brick-and-mortar stores. Many retailers are already re-evaluating and consolidating their physical store networks in response to these challenges. But how can they drive maximum traffic to their remaining physical stores, and minimize losses from closures?

(more…)

Financial Services Organizations Leverage Analytics to Fight Account Fraud

May 11th, 2017 | Posted by APT in Financial Services - (Comments Off on Financial Services Organizations Leverage Analytics to Fight Account Fraud)

Proactively combating account fraud is currently top of mind across the financial services industry. In addition to changing sales incentives and investing in employee education, banks are increasingly investing in advanced analytics to root out instances of fraud.

As application volume has increased substantially in recent years, one leading U.S. issuer noticed that the number of non-authorized accounts was growing proportionally. Recognizing an opportunity to strengthen its fraud detection process, the issuer used APT’s Test & Learn® software to build propensity models that determine a new account’s likelihood of being fraudulent.

(more…)

The Price is Right: Evolving Variable Pricing Strategies for Restaurants

May 11th, 2017 | Posted by APT in Restaurants - (Comments Off on The Price is Right: Evolving Variable Pricing Strategies for Restaurants)

On “The Price is Right,” sometimes all it takes to win big is a little guesswork – but in business, developing a winning pricing strategy is quite complex. For years, organizations ranging from airlines to hotels and restaurants have leveraged variable pricing strategies, adjusting prices based on historic demand during the given day of the week or time of day. For restaurants in particular, this approach is key to effectively driving traffic during off-peak hours. Since an empty table is lost revenue, a menu item that sells for fifteen dollars on Friday evenings could be profitably sold for much less on Wednesdays, for example.

Traditionally, variable pricing strategies for restaurants have included initiatives like happy hours and “Kids Eat Free” programs on slower days of the week. However, as an increasing number of restaurant chains opt for digital menu boards or tablet-based menus, the variable pricing opportunity is evolving. Research from Applied Predictive Technologies’ 2017 State of Business Experimentation Report shows that 65 percent of restaurants surveyed experimented with pricing in the past year, and 10 percent of respondents tested variable pricing-specific strategies.

The increased popularity of digital restaurant technology is enabling more cost-efficient and easy-to-implement variable pricing, allowing restaurants to move beyond shifting price just by day and time to implement real-time pricing shifts based on other factors like weather. But how can restaurant decision-makers ensure that these variable pricing programs are profit-positive?

(more…)

AI Comes to Life in the Insurance Industry

May 5th, 2017 | Posted by APT in Insurance - (Comments Off on AI Comes to Life in the Insurance Industry)

The robots are coming! According to a recent report from Accenture, 75 percent of insurance executives surveyed believe artificial intelligence (AI) will transform or bring significant change to the industry over the next three years. While insurers are already using some elements of AI, new teams and departments within these organizations are also starting to leverage the technology. As insurers strive to remain on the cutting edge and continue to evolve their use of AI, it is critical that they fully understand how it impacts existing processes before investing in widespread implementation.

(more…)