Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales...

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Increasing Sales Productivity through Predictive Analytics Global Retail and Hospitality Talent Summit Dubai, April 2016 Kjersti A. Evensen, Office Manager/HR business partner, Elkjøp Nordic AS 1

Transcript of Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales...

Page 1: Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales Productivity through Predictive Analytics Global Retail and Hospitality Talent Summit

Increasing Sales Productivity through Predictive AnalyticsGlobal Retail and Hospitality Talent Summit – Dubai, April 2016

Kjersti A. Evensen, Office Manager/HR business partner, Elkjøp Nordic AS

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Page 2: Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales Productivity through Predictive Analytics Global Retail and Hospitality Talent Summit

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• Project goals

• Pre-project business case

• Our recruitment process

• Adjustments and development

• Updated business case

• Future plans

• Elkjøp Nordic at a glance

AGENDA

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Elkjøp Nordic - market leader in the Nordics in electronic retail

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Elkjøp Nordic at a glance

3,22b€revenue in 2014/15

~222m€4,2% revenue growth

(fx-neutral)

~111m€Profit in 2014/15

~9100Employees

377Stores

>25%Nordic Market share

(Market share number 2 = ~7%)

Dixons Carphone excl Nordics

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Page 5: Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales Productivity through Predictive Analytics Global Retail and Hospitality Talent Summit

Last year we had…

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2015

61 million 197 million4,3 million

customers visiting our

stores

customers visiting our

websites

customers contacting our

call centre

Applicants applying

for a job

120 000

Page 6: Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales Productivity through Predictive Analytics Global Retail and Hospitality Talent Summit

Our goals

• To hire the right people in the right roles

• Tailormade and simple process for our recruiters

• Minimal use of resources

• Use certified and well-documented methods

• Non-discriminating

• Same criteria and methods in all chains across

Nordics

• Employer branding

• Increase profit and save costs

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It’s about finding the right people for the right positions

• Competitive advantages through people

• Identifying the best candidates

• Different abilities and competencies are

important in different positions

• How to recognize the candidates who will

succeed in our organization?

• Security for both recruiters and applicants

Page 8: Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales Productivity through Predictive Analytics Global Retail and Hospitality Talent Summit

Business case Reducing bad recruitments

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2.000recruitments

20%turnover

23.000€cost/recruitment

10%due to bad

recruitments

4.6 M€cost per year

80%reduction in

bad hires

3.68 M€Potential savings

Page 9: Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales Productivity through Predictive Analytics Global Retail and Hospitality Talent Summit

Business case Use of internal resources

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3hours

39 €per hour

6.000hours

2.000 recruitments

234.000 €potential

savings

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Business caseOwn recruiting

5/3/2016

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30 management positions each year can be

recruited with own resources

Cost per recruiting - external supplier:

38.000 €* x 30 = 1.140.000 €

Cost per recruiting - own recruitment:

5.500 €* x 30 = 165.000 €

* Excl salary in trial period, training etc

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975.000 €potential

savings

Page 11: Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales Productivity through Predictive Analytics Global Retail and Hospitality Talent Summit

Business caseIncreased sales

• Study done by cut-e for retail company in UK:

- Productivity increased by 14% in sales and better

performance in general in stores by selecting people

using tests and structured process.

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394’€average sales

14%increase in sales

by hiring score 3-5

55’€extra revenue per seller

600new sellers

33 M€total EXTRA revenue

20%margin

6.600.000

€potential

extra margin

Page 12: Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales Productivity through Predictive Analytics Global Retail and Hospitality Talent Summit

STUDY - Return On Investment (ROI) Own sellers – difference in sales between the best and the lowest scores on testing

+14%

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Summary business caseFinancial upsides

(€)

3.680.000 Hire the right person

234.000 Time saved in administration

975.000 Own recruiting of managers

6.600.000 Extra sales/margin

11.489.000 TOTAL UPSIDE

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Structured

competency

based interview

The recruitment process

All recruitments are handled through Easycruit

ALL candidates are tested

Screening on abilities, personality, bioadata and structured interviews

Ability tests

T-score > 44

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Personality test

Match score >

Fair

2

CV and

application

3

Background

Check

Contract

Onboarding4 5

51 10 10 6 1

Example of screening effect with 166 applicants – cashier Oslo store:

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6

Page 15: Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales Productivity through Predictive Analytics Global Retail and Hospitality Talent Summit

Which tests do we use in Elkjøp?

• scales ix

• scales lst

• scales lct

• scales mt-2

• scales spr

• sjq for sellers

• shapes basic

• shapes sales

• shapes management

• (shapes executive)

• ++

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Ranking candidates – integration cut-e + Easycruit

03/05/2016

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Ability scores Compund scores Report/interview guide

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Recruitment reports

• Tailormade for Elkjøp

• All results in one picture

• Easy to spot the best candidates and

see their strengths

NN

Abilities

Personality

Personality and abilities

Results essential competencies

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Structured competency based interview

03.05.2016

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• Check if hypothesis is correct

• Relate candidate’s answers to

defined competencies

• Same questions for all candidates

• Structured and comparable

• Notes for evaluation

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Finetuning and development

• Store- and department managers

• Questback surveys to all applicants and recruiters

• Customer service centre employees

• Sales colleagues – new test

03/05/2016

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Verifying our assumptions and adjusting process elements

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Feedback

03.05.2016

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What do our applicants and store managers say?

” I have used cut-e on more than 400 applications now = FANTASTIC ! Works like hell!”

Store manager, Sarpsborg, Norway

******************************************************************************************************************************

808 applicants for different positions in new store in Bergen:

”I can strongly recommend cut-e as a recruiting tool. We will not hire anyone without using this in the future.”

MD for 4 franchise stores in Bergen

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Validation study Customer Service Centers

• High turnover

• Identify characteristics for high-performing employees

- Stress resistance

- Autonomy

- Resilience

• Test bundle and bespoken report with match score

• Tests:

- scales mt2 (multitasking)

- scales lst (deductive logical reasoning)

- shapes basic

• More inhouse recruiting

• Hiring “older” people

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Page 22: Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales Productivity through Predictive Analytics Global Retail and Hospitality Talent Summit

New SJQ test for sellers

• Study among sellers, store managers and department managers

• Preferred response to a given job situation

• Better face validity for candidates

• Different perspective for the recruiter

• 27 questions with Nordic normsets

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Page 23: Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales Productivity through Predictive Analytics Global Retail and Hospitality Talent Summit

Back to the business case

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Business caseUse of internal resources

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5390.000

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Relative individual sales before and after new selection process

+00

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4

6

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10

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before after & verified as tested

Rela

tive s

ale

spe

rfo

rman

ce

(%)

Before/after new recruitment process

ROI – added value from new selection process

Our initial assumptions: +14+18

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394’€average sales

+18%increase in sales

by hiring score 3-5

71’€extra revenue per seller

600new sellers

42,5 M€total EXTRA revenue

23%Higher sales margin

Business caseIncreased sales - calculations based on findings:

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9.775.000€potential

extra margin

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ROI - Business case update

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*Based on that everyone follows the procedures

Area of opportunityAssumed savings

Real savings

Hire the right person 3.680.000 3.680.000

Time saved in

administration234.000 390.000

Own recruiting of

managers975.000 975.000

Extra sales margin 6.600.000 9.775.000

TOTAL UPSIDE 11.489.000 14.820.000

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Page 28: Increasing Sales Productivity through Predictive Analytics · 2016-05-10 · Increasing Sales Productivity through Predictive Analytics Global Retail and Hospitality Talent Summit

The way forward

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Recent improvements and focus ahead

• Mobile adaption in all chains

• Validation study on managers in stores

• Validation study on kitchen consultants

• Keep asking our candidates what they think

• Adjustments to tests and integration cut-e/Easycruit

• Get 100% of the stores on board

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Thank you!30