Case Study: How OptiMine Helped JCPenney Drive Sustained Recovery & Growth via MMM-Guided Optimization
07/01/2024
Industry:
Retail
Client:
JCPenney
Background:
Challenge:
JCPenney’s current vendor’s solution operated much like any other traditional MMM solution: each model refresh took several months to complete, required enormous manual efforts, and delivered model results much too late to be useful. And, the guidance failed to go much deeper than channel levels and optimization scenarios had to be delivered via expensive, slow PowerPoint decks that the vendor had to hand-build. As a result, the solution was prohibitively expensive to operate and was creating more competitive risks for the brand.
Solution:
OptiMine’s deep engagement with JCPenney focused on strategy, along with aligning and custom configuring the MMM solution based on their needs, data and decisioning approach. OptiMine custom-built the measurement solution and layered in deeply experienced consultants to guide the brand to improved leverage of the solution, and ultimately much higher ROI.
Results:
JCPenney Generated Verified Revenue Lift of Over $300MM Within Two Years of Using OptiMine.
A primary area of benefit with OptiMine’s solution is that JCPenney can run much faster and more agile scenario plans, whether on the fly for immediate-term, tactical decisions, or for deep planning tied to their formal budgeting process. In either case, the process is incredibly fast, hyper-detailed, and the improvements have led to substantial performance gains for the brand.
Click here to download the full PDF version of the JCPenney x OptiMine case study.