Leading from the front through data and analytics

How KPMG helped an industry leader develop a successful marketing analytics program to counter pressure in emerging markets

Client

Global consumer-facing mobile application

Sector

Technology

Primary goal

Maximize effectiveness of each marketing dollar spent

 

As it found a home on consumers’ phones around the world, this category-leading mobile application faced growing competition both in the U.S. and in many international markets. To combat these rivals, the company sought to bolster the power of its country- and region-specific marketing programs with a balance of brand-building and lower-funnel tactics. As it studied the challenge, the company realized that it lacked the tools and skillsets to measure the effectiveness of its current efforts, let alone plan the future. KPMG helped the company develop a data-driven approach and advanced analytics models to measure marketing return on investment (ROI) by channel and country, and build an optimization engine that allocated the budget for maximum impact in each market. Today, the company’s targeted, data-based approach gives the entire leadership team, from CMO to CFO and CEO, confidence and agility in its marketing decisions, along with significantly improved results.
 

Key outcomes

Increased
insight

into marketing’s impact on sales 

Clearer marketing ROI

measured precisely across markets

Greater optimization

of marketing investments through highly customized,
advanced tools

30% more revenue

from the same
marketing budget

Higher C-suite confidence

in marketing’s effectiveness and positive business impact

 

Client transformation journey

Click on each part of the journey to learn more about our client’s transformation.

 
  • Where they were
  • Where they are
  • Where they’re headed

Where they were

Looking for the “one way” forward after acquisition-fueled growth.

Albertsons is committed to “one way.” Meaning that, as large as the company becomes, it aims to remain unified in its vision and in the systems and tools that support it. 

Acquisition-fueled growth naturally opens the door to “many ways.” By 2019, different divisions and subsidiaries had their own back-office solutions. People, processes, and data were becoming more siloed.

A different kind of company might have assumed that decentralized processes are an acceptable consequence of multiple acquisitions. Or that you can’t be one of the biggest industry players and move with startling speed and agility when it comes to acquisitions. But accepting trade-offs like those is not the Albertsons way.

Company-wide opportunities

  • Replace nearly XX aging applications that differed across divisions and subsidiaries
  • Reduce manual, disparate processes freeing up more resources for advanced analytics
  • Enable enhanced reporting and make it more widely available across the enterprise
  • Act with greater speed and agility to capture value in acquisitions

Finance Opportunities

  • Process XXX,XXX transactions per month with greater efficiency
  • Reduce 10,000+ manual journal entries per period
  • Decrease >3-week close
  • Shorten the >3-month annual budgeting cycle
  • Provide better support for a growing e-commerce busines
  • Control rising finance function costs and derive greater value 

HR Opportunities

  • Decrease hiring and onboarding times to keep pace with staffing needs
  • Be more efficient in complying with more than 800 collective bargaining agreements and dozens of government contracts
  • Introduce enterprise-wide training programs
  • Unify and automate workforce administration processes across the enterprise

Where they are

290,000+ Albertsons employees come together every day in the cloud.

Today, cashiers at 2,200 stores all log their hours via the same mobile app. That data flows seamlessly to payroll, and across the enterprise-- where it’s available for everyone from store managers making data-driven staffing projections to CFOs reviewing budgets.

Back-office staff spend less time on manual processes and more on analyzing data in ways that help lower costs and improve performance every day, and inform due diligence during acquisitions.

HR executives and business managers find it easy to access candidate information, share observations and schedule interviews, quickly and easily moving the right candidates through the hiring process.

And candidates who become new hires, continue through the same efficient, cloud-based environment as they complete onboarding and get to work—already a part of Albertsons’ “one way.” 

Company-wide success

  • Installed a single, modernized digital platform serving the entire enterprise
  • Accelerated the project schedule by XX-months due to a dual-installation of Finance and HR
  • Migrated 290,000 employees from legacy systems to Oracle Cloud
  • Increased insight-driven decision making across functions, driving performance and growth gains

Finance Successes

  • Decreased balance sheet reconciliations by 85%
  • Achieved a consolidated retail and corporate close within a shortened period
  • Reduced the types of P&L statements from 100+ to 4
  • Reduced operations costs across the board
  • Enhanced availability of data-driven insights that help to capture maximum value during acquisitions

HR Successes

  • Installed an automated, central solution to efficiently administer 800+ complex union agreements for all employee populations
  • Deployed a custom application for union rule processing enabling a single HCM platform to administer benefits to all employee populations
  • Created a digital-first, digital anywhere experience resulting in higher employee engagement
  • Reduced new hire onboarding time
  • Reduced the time it takes to fill staffing vacancies
  • Streamlined and improved the process integration of new employees post-acquisition
  • Integrate processes and technology across the employee lifecycle from recruiting through compensation and performance

Where they’re headed

Making sure the “one way” continues to be the best way.

Long before the go-live date, Albertsons was collaborating with Oracle and KPMG about future initiatives. They wanted to know what to expect from upcoming product releases and how they should be planning to leverage new functionality.

The company’s agile mindset combined with its investment in Oracle Cloud and KPMG Powered Enterprise will keep it in a position to continue evolving, always finding the best way forward as one, strong enterprise.

Company-wide vision
  • Continue to enhance analytics-driven planning and forecasting
  • Optimize the supply chain

Finance Vision

  • Achieve a continuous, virtual accounting close
  • Increase data monetization 

HR Vision

  • Migrate payroll, benefits, and absence mangement to Oracle cloud for 2023
  • Insource benefits administration

“Every market is different. Each country has its own characteristics and culture, its own media environment. If you go deeper—regions, specific cities, etc.—you can break it down at an even more granular level. These new models let the client account for every nuance and local wrinkle as they go through their marketing planning process. They can address exactly the market slices they want, cut waste, and get the most out of every dollar they spend.” 

- Pete Frend, Principal, Customer Advisory, KPMG U.S.

 

How KPMG helped transform client marketing efforts in four quick steps.

KPMG viewed the engagement in four defined phases: defining the scope of the project; assembling and parsing the data; building the models and the optimization engine; and reporting on results to prepare the client to go further. 

     
     
     
     
     
     

1. Vision phase


Aligning on vision

As a first step, KPMG worked with the client team to align on and articulate their marketing effectiveness measurement and management goals, as well as to understand the gaps between their current capabilities, data and systems, and their vision. Ultimately, the client wanted the ability to allocate spend intelligently across markets and channels. KPMG tailored the engagement to help the client achieve its goals:

  • Establish a marketing measurement and management program to maximize short- and long-term company value confidently and intelligently
  • Evaluate marketing investments, first and foremost in terms of their impact on near-term customer behavior and financial performance
  • Quantify the long-term impact of marketing on “upper funnel” metrics, such as brand perception, as an input to budget allocation considerations
  • Develop and deploy a forward-looking spend allocation/optimization toolset and process based on business priorities
  • Supplement the analytics toolkit with a systematic “test and learn” framework to continuously advance marketing’s intelligence and impact on the business

2. Data Collection phase


Compiling the information

With objectives defined, KPMG worked with the client to collect the necessary internal and external data, determined quality levels and gaps, prioritized the missing pieces, and established priorities for enhancing the toolset going forward. Throughout the process, KPMG advised on the data-related implications for the analysis and how they might impact strategy, finance, and other key business areas. 

3. Insights Generation phase


Putting it together

Working alongside the client’s marketing analytics team, KPMG built and summarized results for multiple machine learning models across the client’s priority markets and KPIs. After quantifying each channel’s performance in each market, KPMG built a “spend optimization” tool that enabled fine-tuning of the client’s marketing mix and investment levels to achieve specific objectives, such as revenue targets, customer acquisition goals, and market share increases. KPMG also built decision-support toolsets that allowed even non-technical users to access model results.

4. Activation phase


Up, running, and better all the time

KPMG facilitated data gathering, capability implementation, and education of both working teams and stakeholders. Working side by side, KPMG helped the client crystallize specific near-term actions to achieve business goals efficiently and effectively; and developed a go-forward roadmap to address the client’s broader, longer-term measurement and implementation objectives. 

After KPMG and the client built and delivered the models, the teams worked together to ensure these toolsets and insights were productively integrated within the client’s marketing strategy and budget planning processes. The highly invested client team can now call themselves data-driven marketers. 

 

Turning insights into opportunity

KPMG Customer Advisory

Our team of Customer Advisory specialists can help you understand what your customers need—and transform the way your organization delivers value. Combining business experience with functional acumen, we provide you with deep economic analysis, robust customer insights and market intelligence, and strategic business direction to help you generate ROI from your investments in customer-centricity.

  
 

Tell us about your marketing goals.

Let’s talk about the ways data and analytics can transform your marketing effectiveness.

Jason Galloway

Jason Galloway

Principal, US Customer Advisory COE Lead and US Customer Advisory Leader, Commercial Industries, KPMG US

+1 636-614-4250
Pete Frend

Pete Frend

Principal, Customer Advisory, Marketing Consulting, KPMG US

+1 978-808-9101