John Andrews, an executive at retail predictive analytics platform Celect, discusses company revenue growth with Nathan Latka.
Insight
Andrews: Retail choice modeling doesn't require granular in-store sensor tracking
“The reality is, Nathan, is that you don't actually need that level of granularity to get the signal out of understanding customer preference, right? Part of the technology, you need to identify what the selection set is that people are likely looking at just b…”
Assertion Not checkable as stated
Andrews: Celect delivers 5-7% revenue growth and up to 14% margin lift
“When you do that right, we've seen customers with anywhere from You know, at points, five to seven percent increase in revenue to, you know, upwards of, you know, 13 to 14% increase in gross margin.”
Insight
Andrews: Traditional retailers have sparse customer-product interaction data
“The challenge that other retailers have, even though they feel as though they have a lot of data, the issue is, is that they actually have very sparse data about an individual customer that And individual products and specifically with those customers interact…”
Insight
Andrews: Low-volume enterprise SaaS makes standard churn dashboards difficult
“It's a really hard thing to, it's a really hard thing to measure, right? If our model was, you know, Hey, download something from you know, from our website, put your credit card in, we've got thousands of customers. You can measure based on cohorts much, much…”
Disclosure
Andrews: Celect counts Urban Outfitters and Saks Fifth Avenue as customers
“Our customers include folks like Urban Outfitters, Anthropologie, Free People, Aldo, Montreal, up in Montreal, the shoe manufacturer, designer, and retailer, Saks Fifth Avenue, etc.”
Opinion
Andrews: Retail inventory planning is mostly gut instinct and Excel
“The way that these decisions are made today is generally based on gut instinct and Excel spreadsheets, right?”