Joann deploys one-stop-shop solution for promotion management
Joann is looking to drive real incremental value through promo optimization.
The craft and fabric specialty retailer has partnered with Impact Analytics to drive incremental EBITDA impact through promo optimization. Impact is deploying its proprietary open-source product, Promo$mart, at Joann to help category managers analyze historical promos, simulate future scenarios through predictive modeling, and generate custom visualizations and reports for continuous, daily campaign and program monitoring to enable effective decision making.
“Promo$mart will be the one-stop-shop for all promotion management at Joann and will help us transition from a spreadsheet-based workflow to a cloud-based digital application that provides real-time insights,” says Chris DiTullio, senior VP stores, operations and chief marketing officer, Joann, which has 865 stores nationwide. “This allows us to eliminate 30%-40% of margin-draining promos and to reallocate those dollars to the best performing SKUs and categories.
DiTullio added that Impact Analytics’ preliminary consulting work is already increasing margin in the chain’s direct mailer campaigns, and with Promo$mart in place, it expects a “broader, significant margin impact.”
The heart of the Promo$mart tool is the analytics engine powered by advanced machine learning models built at an SKU level that drive all the insights. The net promo lift is calculated at an overall basket-level as the models capture affinity, cannibalization, pull forward, halo and other secondary impacts. The tool allows for simulation of multiple promo types like BOGO, % off, $ off, etc.
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