Leading restaurant chain
The company wanted to gain a micro-view into factors affecting future traffic in its restaurants. It needed to develop an accurate traffic forecast model and report forecasts at the regional/state level, as well as automate its entire forecast generation process.
The client leveraged Fractal’s Market Mix Modeling approach to estimate the causal marketing mix on key dimensions. The approach used Hierarchical Linear Modeling (HLM) over the Ordinary Least Squares (OLS) method, which the restaurant chain had previously adopted. The new approach successfully quantified the impact of various external factors (such as weather and natural disasters) on traffic in its restaurants.
The engagement enabled the client to determine key factors that drive traffic and leverage this information to deliver focused incentives to drive customer traffic. With detailed forecasts, the client was able to make smart operational decisions on promotions, remodels and advertising at a more granular level.