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THE SITUATION
- The client—who had previously used Stax findings to increase member retention and service usage—required further study to drive value through optimization of its retail outlet capacity utilization.
- We sought to help the client devise strategies to maximize the volume and frequency of member utilization across the client’s network of over 800 retail locations.
THE ASSIGNMENT
- Stax set out to identify operational inefficiencies in the client's three main asset groups, through analytics of company-wide transactional data spanning four years. Stax conducted:
- Comprehensive auditing and mining of large sets of client data—including sales, employee, outlet and appointment data.
- Data de-duplication and creation of unique identifiers to ensure accuracy of merges and the creation of a robust data set that would yield reliable results.
- In–depth analysis to identify under utilization and operational inefficiencies in services, agents and key assets.
THE BENEFITS
- These strategies resulted in increased membership and customer retention, higher frequency of member visits, and improved profit margins.
- Our study helped the client develop strategies and targeted messaging to optimize utilization of services, agents, and operational assets.
THE FINDING
- Stax identified significant variations of franchisee (outlet) performance and utilization relative to one another for each asset group. This allowed the client to learn from well performing outlets and leverage successful ideas more broadly across the organization.
- We provided a set of tools to help monitor and benchmark better performing outlets, identified gaps in agent and service utilization, and made recommendations on ways to improve operational efficiency across each asset group.
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