DRAFT ~ NEW PRODUCT DEVELOPMENT ~ SISTER STORE

SEGMENTATION

SISTER STORE FINDER, RETAIL STORE CLUSTERS, STORE

SEGMENTER, SISTER STORE/BRANCH SEGMENTER,
LOCATION CLUSTERING

Description:
(Equally applicable for any brick and mortar store front retail,
banking, lending, blood banks, etc.)
Sister Store Finder is unlike any other store segmentation scheme. The secret is in how it
infuses Sourcelinks proprietary demographic and geographic data from the surrounding
customer pool into the segmentation process. With homogenous clusters, each store has a
solid benchmark with which to measure success. Stores that previously seemed wellperforming are now recognized as not being where they could be. If a store is high-performing
relative to its segment, contributing factors may be found to use in replicating the success
elsewhere. Likewise, if a store is underperforming, opportunities are illuminated for targeted
campaigns with higher efficiency than ever before. Also, with homogenous store groups, test
campaigns can achieve a high level of accuracy with smaller samples and results from one
store can accurately predict results to be expected when rolled out to other locations within the
same segment.

Statistical Methodologies:
Sourcelink will develop the optimal segmentation using standard statistical clustering
methodology such as k-means, average linkage, centroid, and Wards minimum variance.
Segments will be built based on a combination of statistical analysis and practical applications
of how the segments will be deployed, balancing both to determine the best segmentation
scheme to achieve business objectives.

Benefits/Uses:
Corporate Metrics

Identify Stores Underperforming or Declining in Performance

KPI Development & Monitoring

Marketing

Promotions Testing and Targeting (multichannel DM, EM, Web, Ads)

Cross-Sell / Upsell Strategies and Targeting
Creative Marketing Design & Messaging

DRAFT ~ NEW PRODUCT DEVELOPMENT ~ SISTER STORE

SEGMENTATION

New Store Launch Strategy

Strengthen Modeling build unique models for each cluster

Operations

Resource Allocation
Store Design
Store Branding
Pricing
Revenue / Cash Flow Management
Supplier Management
Inventory Assortment & Stocking Management
Assortment Mix
Space Planning
Store Layout

Price:
Description
Store Segmentation Study Test 4 test pairs
Store Segmentation Roll Out with Reports
(i.e. both customer-centric and geo-centric would be 2X$10k)
Quarterly Updates and New Store Assignments
Annual Evaluation and Re-Build

Pricing
$20,000
$10,000 per
Segmentation
$3,500
$15,000

Timing:
Currently proposed to TSC. Equally applicable to bank branches.