oneFactor, the developer of cloud services based on Artificial Intelligence and Machine Learning technologies together with the Ural alcohol retailer MAVT-Vinoteka implemented a joint project on the evaluation of locations for new store openings. With the oneFactor retail cloud platform you can significantly speed up the decision-making process for the selection of optimal locations for new outlets and reduce the level of investment risk by 4 times. The platform identifies and profiles the customers based on their own data analytics retailers in the union with those of mobile operators, the Internet-companies and Wi-Fi-providers.
Within the pilot project oneFactor analyzed the current customer base of MAVT-Vinoteka to identify the nucleus of the target audience and the ground pattern of visits in retailer outlets. Customer Profile Analysis showed that the target audience MAVT-Vinoteka cellars are men aged 35-44 with incomes above the average of the analyzed city. Wherein 86% buyers do not live farther than 300 m from the existing outlets of the retailer.
During the second stage of the work using the platform oneFactor a model was built to evaluate new locations MAVT-Vinoteka based on the identified target audience of the customer and the basic pattern of consumer behavior when purchasing goods of the retailer. For each point the number of men aged 35-44 with incomes above the average for the city was analyzed, living within the radius of 300 meters from the location. In addition, more 200 other external factorswere taken into account. During the process the model based on Machine Learning algorithms transformed all incoming factors of the sale-point into a single indicator - the average monthly turnover, that the customer would have earned, if opened a shop at this point.
As part of the field test the deviation of the forecast from the actual revenue of not more than 10% is considered acceptable. During the project, through the oneFactor platform a similar result was reached in 82% of cases. For comparison, the market’s average is 21%. This level of precision has been achieved by the company's technology, aggregating anonymous data from different sources.
The constructed model has been implemented into the existing business-process of MAVT-Vinoteka locations for assessment prior to the opening of new outlets. Using the oneFactor platform also reduced the process of assessing the locations up to 48 hours comparing to 3 weeks at a "manual mode".
During the next phase of cooperation an opportunity to integrate the developed oneFactor models with MAVT-Vinoteka website in section "Suggest a location for rent» is considered. This will optimize the existing processes of interaction with the owners of commercial real estate, minimize labor costs and reduce the risks when choosing location.
About the oneFactor platform
The company's technology enables real-time identification of the buyer, determines his portrait and product recommendation form. Using the oneFactor cloud platform allows retailers to evaluate the potential of the location of sale-points through the search for potential buyers of its product line, to find the optimum location for the opening new stores with similar product range, conduct super-targeting and look-a-like modelling of the target audience, predict turnover, measure the conversion of advertising campaigns in the targeted actions, eg. visits or checks, and to conduct omnichannel advertising campaigns, etc.
The oneFactor cloud platform has already been tested within the largest Russian companies, including Internet-hypermarket Utkonos.
MAVT-Vinoteka - Network Alcohol shops in Chelyabinsk region (40 shops) with more than 20-years of experience in the market.