Versium’s LifeData® platform was able to deliver a significant volume of highly relevant, non-biased insights into Outerwall’s customers in 10% of the time, at a fraction of the cost than with using other methodologies such as surveys.
Client Success Story
The location of a retail kiosk is a key component to the success of the company’s business. Determining optimal location can’t just be based on population. Find out how Versium accurately predicted the best locations for 20,000 new retail kiosks using the power of LifeData®.
decrease in data analysis time
As a kiosk business, Outerwall develops partnerships with retail companies to allow their kiosks (Redbox, Coinstar Etc.) to be placed outside or within a retailer’s storefront. As part of a retailer’s evaluation, Outerwall sales reps are frequently asked questions by potential partners such as, “What type of consumers will your kiosks bring into my retail store? Will they buy my products and will they be good for my business and brand? Will there be an increase in shoplifting at my store?” In order to address these questions that retailers ask, Outerwall needed to better understand the characteristics of who uses their various kiosks.
The location of Outerwall’s kiosks is a key component to the success of the company’s business. Kiosk revenue performance can vary widely and identifying optimal locations can have significant impact on top-line revenues. Their previous methodology for determining where to locate kiosks centered around partnerships with retail businesses that had a comprehensive footprint within highly to moderately populated areas. Outerwall was to roll out over 20,000 new Gift Card Exchange kiosks, and wanted to understand if there was a better way to determine optimal kiosk locations. Rather than simply focusing on population, they wanted to become more data-driven and explore using large volumes of consumer and sales data and predictive analytics to help determine where to locate new kiosks.
To determine where to locate new kiosks using large volumes of consumer and sales data.
What Versium Did
Outerwall delivered historical activity data containing details on over 250,000 transactions representing approximately 100,000 customers from their existing kiosks.
Versium identified half of these consumers and appended over 1,000 columns of LifeData attributes.
Versium used the appended LifeData along with data characteristics associated with each existing kiosk location and LifeData attributes on consumers living or working within close proximity to each kiosk to predict kiosk revenue performance based on its location.
Versium used the appended LifeData along with data characteristics associated with each existing kiosk location and LifeData attributes on consumers living or working within close proximity to each kiosk to accurately predict optimal kiosk locations for maximum revenue.
Versium was able to demonstrate that the crime rate for Outerwall customers was equal to the national average, answering their prospects’ urgent questions regarding the shoplifting concern.
The ROI Impact
Outerwall gained a much deeper understanding of their customers as well as the general population around their existing kiosks in a matter of hours at a fraction of the cost, cutting analysis time by 90%.
Outerwall can also use Versium’s Predictive Locator Score to determine the best locations for future kiosks, as well as leverage the insights found through LifeData for future marketing efforts.
See How It Works
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