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Dial up Loyalty & ExperienceMultichannel Customer Analytics

Anu BrookinsVice President, Customer Insights & AnalyticsBelk, Inc.

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About Belk

• Founded in 1888 • Third generation of Belk

leaders• $4.1B annual revenue in

FY2014• 16-state footprint, 300 stores• Dominant retailer in the

South• Generational customer

• Sells modern southern style fashion apparel, accessories, shoes, cosmetics & home goods

• Belk.com relaunched 2009, growing 70% per year

• Community Focus ($19M LY)

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Contents

• Customer Insights & Analytics at Belk• Why Alteryx?• Strategic project highlights• Disruptive Demographics• Real Estate Analytics• Vendor Scorecards• Digital Platform Analytics• Marketing Analytics

• App Gallery• What’s Next

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The Customer Insights & Analytics team has three functions:

Customer Insights & Analytics

WHAT

WHY

HOWCustomer AnalyticsAnalyze customer behavior, provide

insights, analytics & reporting

Customer Research and Insights Qualitative research, focus groups, industry best practices & competitive benchmarking

Customer Journeys Examine customer

journey, identify pain points, recommend

solutions

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Influence of Alteryx

Before Alteryx

“Canned” reports with limited drill down ability

After Alteryx

Customized reports to suit the question asked by stakeholders

Limited understanding of customer metrics

Conflicting picture of customer metrics from different departments

Customer data key to Omnichannel vision & strategy

Merchandise strategy uses customer data; Vendors demand customer scorecards

Manual Excel Reporting, Part of Analyst Job Function

Automated Reporting, Users Can Run Own Reports

Geo-demographic Info Limited to Real Estate

Analyze within- and outside-footprint customer behavior to determine best strategies

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CIA Major Analytics FrameworksCustomer data is utilized in assisting various parts of Belk organization:

Merchandising

Marketing

Digital Platform

Stores

Strategy

Real Estate

Supply Chain

Customer Data

Customer DemographicsVendor ScorecardsCustomer Category Analytics

Campaign Level Analytics

Omnichannel Customer Analytics

Customer Purchase Behavior

Store Portfolio Analysis

Store Network EffectFlagship Store Analysis

Store Fulfillment Customer Behavior

Alteryx plays a key role in all these analyses

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Today’s Focus of Discussion

Analytics where Alteryx plays a key role:

• Disruptive Demographics

• Real Estate Strategies

• Vendor Scorecards

• Digital Analytics

• Marketing

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Disruptive Demographics

In 2013 Belk partnered with Dr. James Johnson, UNC Chapel Hill to provide a view of changes in population shown by Census 2010 and how that affects the Belk footprint

Region2010

Population% of Total US

PopulationAbsolute Population Change, 2000-2010

Percent PopulationChange, 2000-2010

Percent of Total Population Change

U.S. 309,050,816 100% 26,884,972 9.5% 100%

Northeast 55,417,311 18% 1,753,978 3.3% 6%

Midwest 66,972,887 22% 2,480,998 3.0% 9%

South 114,555,744 37% 14,318,924 14.3% 53%

West 72,256,183 23% 8,774,852 13.8% 32%

The South now dominates other Census regions in share of total US population

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Disruptive DemographicsVariety of data inputs were required:US Census 2000, US Census 2010, Experian Estimates for 2013, Experian Estimates for 2018, IRS In-migrant/Out-migrant, By year, 2004 – 2010, Births and Deaths

In-migration & Out-migration Files:16 states x 6 Years x 2 files. This brings them together & cleans up into a table

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Disruptive Demographics

Five year county Migration:Brought all

years together to get an

aggregate view

Population change by

Store by MSA :MSA to County lookup file, join

with Core datasets in

Alteryx to get Population

counts.Country Growth/ Decline Footprint

map: Map out Belk’s 16 state footprint and

color code the counties as Green –

Growth, Red – Decline, and Empty

color as Neutral.

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Disruptive DemographicsUsing this analysis we created a county level growth map of the Belk footprint and identified where Belk store trade area includes growing vs. declining counties

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Disruptive DemographicsSpecifically it helped us identify opportunities to open stores in counties that were growing, one example being Texas

San Antonio

Austin

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Real Estate AnalyticsOur work in Real Estate Analytics is based on the network effect of stores

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Real Estate AnalyticsAlteryx helps us analyze how our customers use our stores as a network to complete their purchases (SOR = Store of Residence)

1st Store1st SOR

3rd Store

2nd Store2nd SOR

3rd SOR

4th SOR

Crabtree Store ($XMM)

4th Store

Crabtree SOR ($XMM)

AttractRetain

Label SOR Sales to RALEIGH NC-CRABTREE Store % of RALEIGH NC-CRABTREE Sales Total SOR Sales1st SOR RALEIGH NC-CRABTREE $27M 44% $47M 2nd SOR DURHAM NC $4M 6% $20M3rd SOR RALEIGH NC-TRIANGLE $4M 7% $14M4th SOR CARY NC $4M 7% $12M

OTHER $22M 36% -

Label Store Sales from RALEIGH NC-CRABTREE SOR % of RALEIGH NC-CRABTREE SOR Sales Total Store Sales1st Store RALEIGH NC-CRABTREE $27M 58% $61M2nd Store RALEIGH NC-TRIANGLE $6M 12% $17M3rd Store CARY NC $4M 9% $15M4th Store DURHAM NC $2M 4% $20M

OTHER $8M 17% -

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Strategic importance of this analysis

Real Estate Analytics

Based on customer purchase behavior, we are helping Belk evaluate:

• Flagship designations and how customers utilize stores

• Effectiveness of partial to complete store remodel projects

• Plans for potential store relocation/ store remodel/ new stores

• Document overall strategy for store portfolio across various store types

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Vendor ScorecardsUsing Alteryx we analyze customer data and create quarterly vendor scorecards

Customer DashboardTY LY Var Var % TY LY Var Var %

Total Sales Activity: 0Transactions 119,490 98,085 21,405 21.8% 128,092 107,409 20,683 19.3%Sales $11,515,424 $9,459,161 $2,056,263 21.7% $12,654,911 $10,307,691 $2,347,220 22.8%Sales/Transaction $96.37 $96.44 -$0.07 -0.1% $98.80 $95.97 $2.83 2.9%Items 135,662 114,231 21,431 18.8% 148,377 126,723 21,654 17.1%Margin % 34.2% 39.4% -5.2% -13.1% 34.8% 37.9% -3.1% -8.2%AUR $84.88 $82.81 $2.08 2.5% $85.29 $81.34 $3.95 4.9%

Total Matched Sales Activity: 0

Customers 44,061 38,590 5,471 14.2% 47,499 41,902 5,597 13.4%Sales $9,945,336 $8,301,790 $1,643,546 19.8% $10,882,999 $9,045,557 $1,837,442 20.3%Sls/Customer $225.72 $215.13 $10.59 4.9% $229.12 $215.87 $13.25 6.1%Visits 94,304 79,425 14,879 18.7% 100,620 86,575 14,045 16.2%Visits/Customer 2.14 2.06 0.08 4.0% 2.12 2.07 0.05 2.5%Sales/Visit $105.46 $104.52 $0.94 0.9% $108.16 $104.48 $3.68 3.5%Items 117,921 101,141 16,780 16.6% 128,840 112,059 16,781 15.0%Items/Visit 1.25 1.27 -0.02 -1.8% 1.28 1.29 -0.01 -1.1%AUR $84.34 $82.08 $2.26 2.8% $84.47 $80.72 $3.75 4.6%Margin % 33.7% 38.8% -5.1% -13.1% 34.1% 37.4% -3.3% -8.7%% to Ttl Sales 86.4% 87.8% -1.4% -1.6% 86.0% 87.8% -1.8% -2.0%

1x Only Customers: 0

Customers 26,110 23,325 2,785 11.9% 28,545 25,379 3,166 12.5%Sales $3,241,768 $2,849,973 $391,795 13.7% $3,602,947 $2,996,483 $606,464 20.2%Sales/Customer $124.16 $122.19 $1.97 1.6% $126.22 $118.07 $8.15 6.9%Margin % 35.1% 40.7% -5.7% -13.9% 36.5% 39.0% -2.6% -6.6%% to Ttl Customers 59.3% 60.4% -1.2% -2.0% 60.1% 60.6% -0.5% -0.8%% to Ttl Matched Sales 32.6% 34.3% -1.7% -5.1% 33.1% 33.1% 0.0% -0.1%2+ Only Customers: 0Customers 17,951 15,265 2,686 17.6% 18,954 16,523 2,431 14.7%Sales $6,703,568 $5,451,817 $1,251,751 23.0% $7,280,052 $6,049,074 $1,230,978 20.3%Sales/Customer $373.44 $357.14 $16.29 4.6% $384.09 $366.10 $17.99 4.9%Sales/Customer Multiplier 3.01 2.92 0.08 2.9% 3.04 3.10 -0.06 -1.9%Margin % 33.1% 37.8% -4.7% -12.4% 32.9% 36.5% -3.6% -9.9%% to Ttl Customers 40.7% 39.6% 1.2% 3.0% 39.9% 39.4% 0.5% 1.2%% to Ttl Matched Sales 67.4% 65.7% 1.7% 2.6% 66.9% 66.9% 0.0% 0.0%

Top Customers (0 - 12 mos $200+) 0

Customers 13,557 11,625 1,932 16.6% 14,992 12,554 2,438 19.4%Sales $7,481,849 $6,159,145 $1,322,704 21.5% $8,242,600 $6,816,689 $1,425,911 20.9%Sales/Customer $551.88 $529.82 $22.06 4.2% $549.80 $542.99 $6.81 1.3%Margin % 37.6% 41.9% -4.3% -10.4% 37.4% 41.0% -3.6% -8.9%% to Ttl Customers 30.8% 30.1% 0.6% 2.1% 31.6% 30.0% 1.6% 5.3%% to Ttl Matched Sales 75.2% 74.2% 1.0% 1.4% 75.7% 75.4% 0.4% 0.5%

New Customers: 0

Customers 30,841 32,620 30,840 1,780 5.8%Sales $4,962,764 $5,443,645 $4,972,281 $471,364 9.5%Sales/Customer $160.91 $166.88 $161.23 $5.65 3.5%Margin % 34.4% 36.0% 38.7% -2.8% -7.2%Growth Rate 79.9% 77.8%Existing Customers: 0Customers 13,220 14,879 11,062 3,817 34.5%Sales $4,982,572 $5,439,354 $4,073,276 $1,366,078 33.5%Sales/Customer $376.90 $365.57 $368.22 -$2.65 -0.7%Margin % 33.1% 32.3% 35.7% -3.5% -9.7%Retention Rate 34.3% 35.5%

Online Matched Sales Activity: 0

Customers 1 688 -687 -99.9% 395 689 -294 -42.7%Sales $44 $54,568 -$54,524 -99.9% $53,284 $61,295 -$8,011 -13.1%Sales/Customer $44.00 $79.31 -$35.31 -44.5% $134.90 $88.96 $45.93 51.6%Orders 1 731 -730 -99.9% 431 722 -291 -40.3%Orders/Customer 1.00 1.06 -0.06 -5.9% 1.09 1.05 0.04 4.1%Sales/Order $44.00 $74.65 -$30.65 -41.1% $123.63 $84.90 $38.73 45.6%Items 1 900 -899 -99.9% 482 951 -469 -49.3%Items/Order 1.00 1.23 -0.23 -18.8% 1.12 1.32 -0.20 -15.1%AUR $44.00 $60.63 -$16.63 -27.4% $110.55 $64.45 $46.09 71.5%Margin % 0.0% 50.3% -50.3% -100.0% 49.6% 51.9% -2.3% -4.4%% to Ttl Customers 0.0% 1.8% -1.8% -99.9% 0.8% 1.6% -0.8% -49.4%% to Ttl Matched Sales 0.0% 0.7% -0.7% -99.9% 0.5% 0.7% -0.2% -27.7%

Unmatched Transactions: 0

Transactions 14,839 11,102 3,737 33.7% 16,227 12,217 4,010 32.8%Sales $1,570,088 $1,157,371 $412,717 35.7% $1,771,912 $1,262,134 $509,778 40.4%Sales/Customer $105.81 $104.25 $1.56 1.5% $109.20 $103.31 $5.89 5.7%Items 17,741 13,090 4,651 35.5% 19,537 14,664 4,873 33.2%AUR $88.50 $88.42 $0.08 0.1% $90.70 $86.07 $4.62 5.4%Margin % 37.2% 43.4% -6.2% -14.4% 38.8% 41.3% -2.6% -6.2%% to Ttl Sales 13.6% 12.2% 1.4% 11.4% 14.0% 12.2% 1.8% 14.4%

Vendor: 1802411 - XYZ SPTWR

Fall FY14 (12 mos) Spring FY15 (12mos)

Data Timeframe: Fa l l FY14 02/03/2013 - 02/01/2014 ; Spring FY15 05/05/2013 - 05/03/2014 May 15, 2014

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Digital Platform AnalyticsUsing Alteryx we analyze our multichannel customer behavior and provide analytics to business stakeholders

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Marketing AnalyticsFor Marketing, we generate weather reports, campaign level reports and several other customer shopping reports

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Belk’s Analytical App Gallery

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This is just the beginning…

What’s Next

• Create more apps for existing reports and provide training to stakeholders for self-service

• Deeper dive into Real Estate Analytics• Connect into Teradata EDW and create automated reports combining

data from EDW and Customer database• Assist merchandising groups with defining and enhancing category

strategies• Proactive analysis for Finance, Real Estate, Merchandising, Marketing,

Omnichannel and Stores

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THANK YOU!