Alteryx Helps Great Clips Drive Growth Strategy with Site Selection Application: Reducing Costs, Speeding New Salon Openings, and Improving Franchisee Relationships
Company Size
1,000+
Region
- America
Country
- Canada
- United States
Product
- Alteryx Strategic Analytics
Tech Stack
- Predictive Analytics
- Spatial Analytics
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Customer Satisfaction
- Productivity Improvements
Technology Category
- Analytics & Modeling - Predictive Analytics
- Analytics & Modeling - Real Time Analytics
Applicable Industries
- Retail
Applicable Functions
- Business Operation
- Sales & Marketing
Use Cases
- Predictive Replenishment
- Supply Chain Visibility
Services
- Data Science Services
About The Customer
Great Clips is the world’s largest and fastest-growing salon brand, with more than 3,000 salons throughout the United States and Canada. The Minneapolis-based company employs nearly 30,000 stylists who receive ongoing training to learn advanced skills and the latest trends. The company's success is based on a growth strategy that involves rapidly opening new stores in the right locations and markets. To accomplish this, the company must identify locations based on requirements for a potential customer base, demographic trends, and sales impact on existing franchises in the area. Choosing the right sites for new franchisees is one of the most important business decisions the company makes, requiring analysis of thousands of locations each year.
The Challenge
Great Clips, the world’s largest and fastest-growing salon brand, was facing challenges in its growth strategy. The company's success is based on rapidly opening new stores in the right locations and markets. However, the process of identifying these locations based on potential customer base, demographic trends, and sales impact on existing franchises was taking too long and was expensive. The process required analyst resources to manually access, integrate, and analyze multiple sources of data to produce a report for a single location. This delay was risking the loss of prime sites to competitors and alternative real estate interests. Additionally, costly external contractors were being used to deal with the backlog.
The Solution
Great Clips turned to Alteryx to streamline its site selection process. Alteryx Strategic Analytics was used to put strategic analytics in the hands of its real estate managers, providing an easy-to-use, fast, and accurate way to find and qualify potential new franchise locations. The Alteryx application evaluates an entered address by its drivetime proximity and convenience for serving all existing customers of the Great Clips salon network in the area. It also rates the site by how well the demographics and consumer behavior data for the site’s trade area population align with Great Clips’ best customer profiles. Finally, it assesses the potential revenue impact a salon at any new site would have on other surrounding Great Clip salons, and on the franchise network as a whole. The new salon site modeling capabilities built using Alteryx enable Great Clips real estate managers to proactively discover and pinpoint locations that hold the greatest potential for successful new salon operations.
Operational Impact
Quantitative Benefit
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