Operating hundreds of stores with thousands of employees worldwide, Sephora’s key to success is keeping a constant pulse on in-store performance and making necessary adjustments.
However, because each store tracks and analyzes up to 40 different metrics each day, gauging performance and patterns and turning data into actionable insights can be a daunting task. Rather than spending time engaging with in-store shoppers, store leaders were chained to their desks and forced to crunch numbers in the back office, sifting through disparate spread sheets and reports.
“One of the biggest hurdles we had was the sheer amount of metrics we provided to our store leadership and how we delivered them,” said Anthony Pristyak, who is the Director of Retail Analytics and Payroll at Sephora North America. “Data was delivered through different legacy systems and via email. The numbers were all over the place. Not only was it difficult to collect information, but store leaders were having trouble understanding the reports and making actionable decisions.”
Now, Sephora uses Roambi, a mobile data visualization solution designed to provide real-time insights regarding key business metrics. The retailer has exchanged manual, reactionary processes to intelligent, data-driven decision-making.
“Store leaders have a lot to think about,” Pristyak said in an interview with Retail TouchPoints. “We don’t want them to be analysts, but we want them to quickly see and understand data, and determine the next steps they need to make.”
Peeling Back The Data Onion
Through Roambi, store leaders have access to key performance indicators (KPIs) such as sales, total number of transactions, average dollar spent, units per transaction and overall store traffic. Sephora also has established a set of supporting metrics to help team members better understand the cause or reason for specific results.
“If you’re diagnosing your business, you start with KPIs and start peeling back the onion from there,” Pristyak explained. “If you know that your sales are down, you can determine whether that’s coming from a drop in traffic or conversions. Then, you investigate the supporting metrics that make an impact. It’s all about being able to diagnose what’s impacting your business and making the right decisions using that information.”
As a result of its improved access to KPIs, Sephora has saved more than 150,000 personnel hours. This has allowed the brand to allocate additional budget to new investments that will improve the customer experience.
“It took a substantial amount of time for team members to pull information from multiple sources on a day-to-day basis,” Pristyak said. “Now, store leaders have the right information at their fingertips and no longer need to go to different reports and memorize information — it’s all in one place.”
The Roambi platform also is mobile optimized, so team members can free themselves from the back office, and spend more time connecting with shoppers.
“All stores have iPads that are used specifically for Roambi,” Pristyak explained, “so store leaders can get out of their office while still accessing all of that information. They can review all the data in their downtime without having to take themselves away, physically, from the front of the store.”
Currently, Sephora is integrating sales focused data, so store leaders can easily understand their goals and overall performance. But moving forward, the retailer plans to integrate operational data, such as inventory information, according to Pristyak “Moving forward we want stores to have a simple platform to quickly check inventory levels, do cycle counts and get that information in real time.”