LP Analytics – Making the most of your analytics program.
For over 20 years, loss prevention analysts have been mining through mountains of POS data looking for theft, compliance issues, training opportunities, and systemic problems that may not only affect the bottom line, but that also expose operational vulnerabilities. The methodology used to get the best results out of the available data is always evolving, and The Zellman Group’s analytics team maximizes all available data by mastering the available tools to get you the best exceptions possible.
A common misnomer is that analytics programs only find theft, and of course theft is at the top of the list, but if ignored, operational breakdowns, and training opportunities can create margin creep, and spiral out of control without ever being addressed by your organization. A common example of this is a cancel/mid-void transaction. Instead of using the price-lookup key, associates may use the cancel key to check prices. Cancels are also a commonly used theft method to drop sales and pass-off merchandise. When price checks are allowed to happen using the cancel function, dropped sales and pass-offs may not be identified, because the fraudulent cancels are mixed in with mountains of skewed cancel/price lookup data.
What is often missed is that the ROI for your analytics program is directly related to the quality and details of the exception review/investigation that was done by your team, and most importantly, that those detailed results are communicated back to your analyst within 14 days of an issue found. Feedback from resolutions are essential for the analysts to learn about your organization. It allows them to modify data that will help them analyze for theft more effectively.
Detailed responses create a clearer picture for your analyst. Instead of a brief, “This is not theft,” a more productive response would be, “CLIENT RESOLUTION 5/9/16; Cycle counts were conducted on the cancelled SKU’s, and all inventory is accounted for. It appears that the cancels were generated in poor judgment. Consequently, it is suggested that John Smith receive additional cashier training.” Loss Prevention analytics are incredibly important and effective in detecting and stopping theft. Look at your business right now and ask yourself:
Does your organization have procedures in how to review exceptions?
Is your staff trained, and do they know what they’re looking for?
Does your organization have a standard for responding to exception reviews with detailed resolutions?
Are you responding within 14 days of receiving an issue to ensure activity is being addressed in timely manner?
If you have answered no to any of these questions, please contact The Zellman Group today for best practices on how to maximize your analytics program.