American Eagle (AEO) is a $4+ Billion specialty retailer based in Pittsburgh, PA. It operates retail and online channels under the banners of American Eagle & Aerie.
American Eagle (AEO) is a data driven retailer that conducts a number of in-store/ market tests to guide critical pricing, promotion, product and real-estate decisions. Scientifically designed and evaluated in-market tests help AEO understand the true incremental from these decisions. In addition, AEO needs to understand the impact of these tests in a multi-dimensional manner across different metrics, and segments of customers to understand the underlying dynamics of the tests.
Designing and evaluating these tests is challenging due to:
– need for business users to identify statistically sound test and control stores
– need to analyze large volumes of transaction data to understand the dynamics
– large volume of tests that need to be managed through a central process that addresses conflicts
Lastly, all this needs to be done cost-effectively and in a secure environment. Other vendors required AEO to move the data to another location to support such a solution, which not only added to the costs, but was also not consistent with their data security standards.
Core Compete’s Experiment is a solution for conducting scientific in-store experiments. The solution consists of a business user-friendly interface, packaged analytics for developing the in-store experiments, and reporting to analyze the effectiveness of the experiment. Custom analytics enable the user to analyze the impact of the test on a variety of metrics at different levels of customer, product and store drill-downs.
The solution is deployed directly in the customer’s data lake without needing for the data to be moved out of the customer’s Google cloud environment. Leveraging Google Big Query as the underlying data processing engine, the system delivers unparalleled speed at a fraction of the cost of other alternatives.
American Eagle is now able to test a variety of initiatives through this solution and confidently scale up the decisions. They are able to devise new promotions, pricing and product strategies and quickly test them in-stores and scale up successful ideas. Compared to the previous approach, the customer was able to not only significantly reduce annual operating costs, but also improved compliance with data security regulations.