How does Quorso control for external factors (like storms or the Super Bowl) that affect some of my stores, but not others?
Yes it does. Quorso adjusts the sales of the group of stores you’re being compared to, in order to take account of things like customer traffic and customer demographics. It does this by looking at the performance of the product area that you have received a Mission on, relative to the performance of its parent category sales. Here’s an example:
My store (Store A) sells $10 of bandanas, which accounts for 10% of the Accessories category sales ($100). On average, Stores B-K (with the same Accessories range & space) sell $15 for every $100. In this example, I’m underperforming vs my peers by $5 (5%). Let’s look at 3 different scenarios to show how Quorso accounts for the impact of exceptional events on Missions:
- Storm Uri hits and this is driving down footfall in my store: Let’s say store A footfall drops and as a result Accessories sales decline by 50%, and bandanas also decline. However, on inspection, I can see they still account for 10% of Dog Clothing sales. If all things stayed the same with my peer group, (e.g. their sales of bandanas stayed at 15% of Accessories sales) then although I have seen a physical reduction in sales and footfall, my proportion of item sales, relative to the category parent, when compared to my peers, would remain the same.
- It’s the Super Bowl and this is driving up sales in other stores but not mine: Let’s say stores B-K experience a doubling of footfall and Accessories sales, and similarly, my bandanas sales also increase. However provided that bandanas still only account for 15% of Accessories sales and if all things stayed the same with my store (e.g. my sales of bandanas stayed at 10% of Accessories sales) then although stores B-K have seen a physical increase in sales, my proportion of item sales, relative to the category parent, compared to my peers is still the same.
- My store runs a specific NFL promotion in support of Super Bowl: Let’s say my store doubles its share of bandana sales to 20% of Accessories. If all things remained equal with my peer group, then relative to peers, I am now outperforming them by 5% which in this case equates to a sales uplift of $10. This is a Successful Mission.
In the same way, Quorso takes account of the impact that Covid-19 has had on footfall in different areas.