Help That Gut Feeling - Melvin & Hamilton Let the Data Speak
In the past, it has often been enough to have industry and
market experience to develop a good gut feeling for your business. Those who knew their way around were successful. These times are over because data has long been the new currency in the business world. The digitization and internationalization of the economy is increasing the amount of available data almost exponentially. If you want to be competitive in the future and achieve economic success, you have to think "data-driven". The German family-owned company Melvin & Hamilton recognized this at an early stage and founded a company that deals with digital topics such as the “digitization” of the very traditional retail business. With the help of minubo, a data-driven working culture has been established.
Two times in a row, the leather shoe manufacturer Melvin & Hamilton belonged to the 500 fastest growing companies in Germany and was even voted “Best Brand 2018” by an industry jury and the B2B-magazine Schuhkurier. Not only do the sales figures speak for the success of the company, but also their longtime existence. Melvin & Hamilton offer their exclusive range through select retailers, their own outlet stores and their webshop. In order to better recognize market opportunities, to serve customers in a more targeted manner, and to better track their holdings, the company has been relying on targeted data analysis with minubo since 2018.
For Melvin & Hamilton Digital CEO Nicolas Metzke, the focus was clear right from the beginning: "gut feeling is good, but gut feeling and data intelligence should make us even smarter". No sooner said than done - the project was put into action, integrating the various data sources and thus the availability of data increased in everyday business operations. The company is currently focusing on the following five areas: online marketing, product range, customer segmentation horizontal engagement and management target-performance comparison.
- Online marketing: Especially when considering and evaluating the individual marketing channels, minubo offers a decisive added value. Because these are analyzed not only in terms of their order value and the conversion rate, as is typical in traditional web analytics systems, but also in terms of returns and multi-level contribution margins. The holistic, cross-channel view thus prevents silo thinking and creates the conditions for optimal budget allocation.
- Product range: As a fashion brand, Melvin & Hamilton designs over 1000 new styles per collection for men and women. The models differ not only in terms of shape and shoe style but are often created in various colours and material combinations with different accessories and soles. Pure gut feeling in the assortment planning can quickly become expensive and lead to missed sales. Which product with which “colour-sole-configuration” was sold in which period? Which styles should be re-produced? Which models or colours are not successful? Recognizing sales trends at an early stage and being able to respond to the fashion-driven demand has become a decisive growth factor. With minubo, Melvin & Hamilton gets data on the complete product range at a glance. These insights are critical to the company when it comes to maximizing the sales ratio, optimizing (stock) inventories, or initiating sales promotions early. In the future, the minubo database will also be used to carry out shopping cart analysis in order to make better use of opportunities for cross-selling and to be able to generate additional sales with product bundles.
- Customer segmentation: Based on customer characteristics (gender, age, etc.) as well as transactional data (buying behavior, orders, returns, etc.), Melvin & Hamilton can automatically create segments via the corresponding minubo feature. In its 5 webshops, with which Melvin & Hamilton serves 15 countries in Europe in addition to its core markets Germany, France and the Netherlands, this segmentation significantly contributes to a more precise customer acquisition. By segmenting, the company also has the opportunity to make campaign management, for example, by means of targeted measures for customer reactivation and customer loyalty, even more efficient
- Horizontal Engagement: Melvin & Hamilton has set up access to minubo for all employees. In addition, the company has trained specific user groups to independently create dashboards and analysis. Whether top management or marketing manager, logistics or client service, all users have access to the most important key figures at all times, meaningfully visualized on interactive dashboards. They can create ad-hoc analysis and share their insights with all or a selected group of users. Daily or weekly alerts, which are automatically distributed to targeted users, quickly provide an overview of relevant KPIs and the current situation.
- Target-performance comparison: For 2019, Melvin & Hamilton has created an annual plan with 3 different scenarios: conservative, realistic, ambitious. All three scenarios are included as target figures in minubo, which makes it easy for Melvin & Hamilton to compare their actual performance with their planned numbers. Not only sales figures but all relevant variables, such as online traffic, conversion rate, average shopping cart or return rate, are analyzed. Based on this target-performance comparison, the company is able to detect and also proactively react on target deviations.
With minubo, all employees across all main departments are thus able to extract action-relevant information so that they can make their daily decisions better and faster based on data, and to perfect processes with the support of data. The "Management by gut feeling" is thus complemented as a whole because the combination of rational, fact-based knowledge and many years of experience in the market environment and intuition is, in most cases, the key to success. Melvin & Hamilton has made a cross-company and data-driven decision-making and work culture a reality, setting the course for more sustainable business growth.
Do you also want to establish a data-driven corporate culture? Register for a free demo account.
In Episode 3 of our Inside Story with FarmTiger, we asked founder Justus why he...
What role does data play for founder Justus? What does it mean to be...
The Startup – Who or What is FarmTiger? Until now, farmers had to buy their products...
The previous purchasing routine of eXXpozed was not supported by meaningful key...