Unlocking Warranty Profitability: Transforming Multi-Channel Retailer from Poor Insights to Predictable Performance
Case Study
Challenge & Opportunity
A leading European electronics retailer needed to understand revenue and cost drivers to optimise profitability across their extended warranty portfolio. The business faced three key challenges:
- Limited visibility into true profitability drivers
- Hidden channel and product performance variations
- Inaccurate forecasting hampering business planning and portfolio management decisions
Our Approach
Discover & Diagnose
- Deep-dive analysis of 5-year transactional data across channels
- Stakeholder engagement across IT, Finance and Commercial teams
- Comprehensive value driver assessment
- Opportunity sizing and prioritisation
Design & Model
- Probabilistic bottom-up aggregation model development
- Customer cohort analysis across 25+ value dimensions
- Predictive analytics implementation for claims propensity
- Lifetime customer value modelling framework
Deploy & Execute
- Real-time Power BI dashboard deployment
- Interactive SKU performance analytics
- Channel profitability tracking
- Pricing opportunity identification
Optimise & Scale
- Continuous performance monitoring
- Pricing strategy refinement
- Cross-channel optimisation
- Portfolio management framework
Results & Impact
Key Results
- 45% improvement in forecasting accuracy
- 1% year-on-year margin increase
- Identified 85% revenue concentration in top 14 products
Business Outcomes
- Real-time visibility into product performance
- Enhanced channel profitability insights
- Streamlined portfolio management
- Enhanced decision-making capability
Solution Toolkit
- MySQL
- Power BI
- Advanced Excel Modelling
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