Periscope For Retail

Periscope for Retail:
Drive retail performance with

big data and advanced analytics
Periscope by McKinsey drives revenue growth for retailers
by addressing all core commercial levers. Our solutions
focused on insights creation, marketing, pricing, category
optimization, and customer experience improvement
generate a lift of 2-5% in sales and 1-2% in margin.
Periscope® by McKinsey 1
Periscope for Retail enables you It delivers sustainable margin and sales
improvement through actionable insights,
to integrate real-time data from marketing optimization, and better pricing,
internal and external sources into promotion, and assortment strategies.
daily decision making to optimize
and manage a nearly unlimited
number of products and prices.
Marketing Customer Category Pricing

Solutions Experience Solutions Solutions
Solutions
Get cutting-edge insights Enhance customer Become category Leverage competitive
into customers’ needs and experience by capturing captain, understand insights, optimize pricing,
make data-driven decisions feedback from all your customer behavior, and promotions and markdown
to optimize marketing spend customers, across optimize assortment in a fast-changing market
and personalize customer every channel and space allocation environment across all seasons
communication that drive accordingly
sustainable growth and
outperform competitors
Periscope® Platform
Data Management Insights Implementation Capability

& Enrichment Expertise & Client Sevice & Training
Technology Platform and Partnerships
The Periscope platform combines world-leading

intellectual property, prescriptive analytics, and
cloud-based tools with expert support and training.
It is a unique combination that drives revenue
growth, both now and into the future.
Marketing Soluitions: Helps retailers identify what customers want and
when they want it. It forms a 360 degree view of
1.5%
customers by integrating hard scientific methods,
objective facts, and cutting-edge analytics.
—— Online information monitoring platform to
Margin improvement assess competitive positioning at SKU level
per year in real time
—— Improves understanding of how shoppers
15-30%
interact with brands and also identifies
category dynamics and new market entrants
in online channels
Marketing spend reduction Helps retailers set a mix of marketing instruments
that optimizes cost and returns and personalizes
5-15%
engagement to build deeper relationships with
their customers.
—— Provides full transparency on
marketing performance
Revenue uplift with personalized
customer recommendations —— Enables companies to make better decisions
on brand positioning and marketing investment
allocation, leading to increased marketing
return on investment
—— Helps to build deeper relationships with
customers through end-to-end personalization
and digital service offering
Customer Experience Solutions: Benchmarks performance by customer journey,

prioritizes improvement initiatives, and measures
10-15%
their impact on customer satisfaction over time.
—— Prioritizes customer journeys based on current
performance and importance to customers
Revenue growth
—— Measures real-time impact of improvement
initiatives on customer satisfaction
25%
Reduction in churn
20%
Uplift in customer
conversion
Category Solutions: Helps retailers use shopper behavior data, market
insights, and store logistics to improve category
Up to assortment across stores and digital channels.
7%
—— Analyzes consumer behavior to create next
product-to-buy, consumer cross-shopping,
and promotion impact analyses
sales lift —— Generates fast and customized customer
decision trees
2-4%
—— Assesses transferable demand and walk
rates for each item in a category
—— Identifies which products contribute to
Category growth revenue goals
—— Predicts how portfolio changes will affect
overall sales
Pricing Solutions: Provides retail executives with the analytics,

automation, and expert insights they need to
2-5%
optimize pricing, promotions and markdown
based on demand, margins, and competition.
—— Provides a flexible price-setting model
Sales lift to calculate target and list prices
—— Identifies areas of under- and
1.5%
over-promotion investment
—— Adjusts markdown prices in real time for
underperforming events and analyzes the
Margin uplift patterns of successful past promotions to
improve planning and execution in the future
10-20%
—— Microtests multiple offers on digital platforms
before rolling out at scale
Increase in trade spend

effectiveness
Impact Created
Furniture retailer: Department store:

Enabled the recovery of millions of dollars in Quickly identified a 2-3% sales uplift and 1-2%
margin loss and built capabilities to plan the gross profit increase by restructuring the marketing
following year’s collections and categories by calendar to focus on highvalue promotions that drive
delivering timely and detailed market intelligence sales and margin, plus building and embedding an
on competitor pricing and assortments using integrated approach to making pricing decisions
Category Solutions. using Pricing Solutions.
Multi-billion retail company: Home improvement retailer:

Achieved 15% reduction in marketing spend Identified a 2.5% lift in sales and developed a new
and identified USD >40 million incremental pricing strategy by enabling a price-zone based
sales, freed up $15m to invest in digital vehicles approach based on store cluster analysis, creating a
through targeted reduction in legacy media and heuristic scoring method to deliver competitive price
built lasting MROI capabilities within the company recommendations, and building pricing capabilities
using Marketing Solutions. using Pricing Solutions.
Large regional grocer:

Rapidly enabled the company to negotiate
$8 million more in vendor funding from its
20+ vendors in 6 categories and a projected
4–8% combined sales lift by optimizing
assortment and promotions, enhancing vendor
negotiation, and increasing customer loyalty
using Category Solutions.
Get started
To learn more about our offering for
the manufacturing industry, contact
us at [email protected]
or visit www.mckinsey.com/periscope

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Periscope for Retail:

Drive retail performance with

Marketing Customer Category Pricing

Data Management Insights Implementation Capability

Technology Platform and Partnerships

The Periscope platform combines world-leading

Customer Experience Solutions: Benchmarks performance by customer journey,

Pricing Solutions: Provides retail executives with the analytics,

Increase in trade spend

Furniture retailer: Department store:

Multi-billion retail company: Home improvement retailer:

Large regional grocer:

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