Loyalty Analytics

Using the Sales Tree and

Performance Drivers
The Sales Tree and its key Performance Drivers are the starting point of any performance analysis within
our solutions. There are two flavors of the analysis: one based on all transactions covering the entire tLog
database, and one based on Cardholders which is more granular and covers any transaction made with a
corresponding loyalty card.

Decompose sales performance into key tactical levers

When your brand is experiencing sales growth or declines, you need to investigate which key
performance indicators are driving this so you can apply the correct strategic or tactical lever to course
correct; for example visits, spend per visit, units per visit or average price.

Our key performance indicators are more granular when using the loyalty card data by decomposing
sales change into buying households, spend per household, spend per visit, visits per household, units per
visit and average price.

Answer critical business questions

■ Which underlying facts are driving overall performance?

■ Should I focus on bringing in more visits or households or on building bigger baskets amongst
existing purchasing customers?

■ Where should I focus my marketing spend; build bigger baskets or increasing buying frequency

■ Are specific customer segments performing differently over time?

Key benefits
■ Discover what is driving category growth or decline amongst the entire store transaction base or
decomposed amongst the retailers loyalty card holders.

■ Analyze differences in performance drivers by different product groups, geographies, customer

segments or over time.

© 2021 Nielsen Consumer LLC. All Rights Reserved.

Using the Sales Tree and Performance Drivers
How do the facts in the sales tree relate to each other for all
transactions?

Total Sales

Visits Spend per Visit

Average Unit
Basket Size
Price

The Sales Tree measures the causes of performance change and allows you to investigate the most
important drivers of change, which - in turn - enables you to learn whether you need to focus on
attracting new visits or target existing customers to visit more frequently, build basket size or trade up to
more expensive products. For All and Non-Carded Transactions, the tree consists of five core facts:

1. Total Sales: total of the amount spent on the product in the selected geography and period.

2. Visits: the total number of visits when the product is bought.

3. Spend per Visit: the average amount spent on the product per shopping trip.

4. Basket Size: the number of product units bought per shopping trip.

5. Average Unit Price: total of the amount spent per single unit of the product.

© 2021 Nielsen Consumer LLC. All Rights Reserved. 2

Using the Sales Tree and Performance Drivers
How do the facts in the Sales Tree relate to each other for
Cardholders?

Total Sales

Households Spend per HH

Visits per HH Spend per Visit

Average Unit
Units per Visit
Price

The Sales Tree measures the causes of performance change and allows you to discover the most
important drivers of change, which - in turn - enables you to learn whether you need to focus on
attracting new households or target building basket size. For Carded Transactions, the tree has seven core
facts:

1. Total Sales: total of the amount spent on the product.

2. Households: the total number of households buying the product.

3. Spend per HH (Household): the total average amount spent by a buying household on the
product.

4. Visits per HH: the number of times a buying household has bought a basket containing the
product.

5. Spend per Visit: the average amount spent on the product per shopping trip.

6. Units per Visit: the number of product units bought per shopping trip.

7. Average Unit Price: total spent per single unit of the product.

© 2021 Nielsen Consumer LLC. All Rights Reserved. 3

Using the Sales Tree and Performance Drivers
Setup your Sales Tree analysis

1. Click on All Report Templates at the top right of the landing page to see an expanded view of all
available Report Templates.

2. Click the Sales Analysis – All Transactions or Sales Analysis – All Cardholders tab.

3. Click the Sales Tree card to open the template.

© 2021 Nielsen Consumer LLC. All Rights Reserved. 4

Using the Sales Tree and Performance Drivers
Select the data required for your report

1 2 3 4 5

1. Products: Select your product groupings either from the hierarchy or alternatively use Sum and
Group By to select a combination of product characteristics.

2. Stores: Select any store group for this report.

3. Member/Basket: Select any value

4. Periods: Select any time period you are interested in.

5. Sample Size: Run the report on 10% or 100%.

Tip: Set a default selection for Product Share base so you don’t have to select it in the
majority of reports.

Tips & watchouts

■ The Sales Tree - all transactions works on any value selected in the customer / basket dimension,
the cardholders version only works on values based on carded transactions.

■ The change and contribution facts are only calculated for the equivalent period last year.

■ Analyze the sales tree from the bottom up and left to right to fully investigate the underlying
drivers.

■ Select multiple Store, Period and Product groups before running the report. Use the + function in
the data selector if you want to see your target product and its children correctly in the product
dimension.

Tip: Once you have run the report with multiple product, store or time period selections use
the context carry functionality to compare the performance drivers side by side

© 2021 Nielsen Consumer LLC. All Rights Reserved. 5

Using the Sales Tree and Performance Drivers
Data and fact definitions (all transactions)

1 2

3 4

1. Impact Visits: The impact expressed in local currency due to the increase or decrease in number
of visits where the product is bought for the selected Stores, Customer Segment and Time Periods
vs the equivalent periods the previous year.

2. Impact Spend per Visit: The impact expressed in local currency due to the increase or decrease in
the average amount spend per ticket on the product for the selected Stores, Customer Segment
and Time Periods vs the equivalent periods the previous year.

3. Impact Average price: The impact expressed in local currency due to the increase or decrease in
the average price per unit paid for the product selected for the selected Stores, Customer
Segment and Time Periods vs the equivalent periods the previous year.

4. Impact Basket Size: The impact expressed in local currency due to the increase or decrease in the
number of units bought per visit or basket on the product for the selected Stores, Customer
Segment and Time Periods vs the equivalent periods the previous year.

© 2021 Nielsen Consumer LLC. All Rights Reserved. 6

Using the Sales Tree and Performance Drivers
Data and fact definitions (all Cardholders)

2
4

3 5 6

1. Impact Households: The impact expressed in local currency due to the increase or decrease in
number of Customers buying the product for the selected Stores, Customer Segment and Time
Periods vs the equivalent periods the previous year.

2. Impact Spend per Household: The impact expressed in in local currency due to the increase or
decrease in the average amount spent on the product bought per Customer for the selected
Stores, Customer Segment and Time Periods vs the equivalent periods the previous year.

3. Impact Tickets per Customer: The impact expressed in local currency due to the increase or
decrease in the number of tickets when the product is bought for the selected Stores, Customer
Segment and Time Periods vs the equivalent periods the previous year.

4. Impact Spend per Visit: The impact expressed in in local currency due to the increase or decrease
in the average amount spend per ticket on the product for the selected Stores, Customer Segment
and Time Periods vs the equivalent periods the previous year.

5. Impact Average Price: The impact expressed in local currency due to the increase or decrease in
the average price per unit paid for the product selected for the selected Stores, Customer
Segment and Time Periods vs the equivalent periods the previous year.

6. Impact Basket Size: The impact expressed in local currency due to the increase or decrease in the
number of units bought per visit or basket on the product for the selected Stores, Customer
Segment and Time Periods vs the equivalent periods the previous year.

Tip: Once you have run the report with multiple product, store or time period selections use
the context carry functionality to compare the performance drivers side by side.

© 2021 Nielsen Consumer LLC. All Rights Reserved. 7

Using the Sales Tree and Performance Drivers
Variations of Performance Drivers reports

1 2 3 5

1 4 2 3 5

1. Sales Tree: Decomposes sales change into the underlying performance drives, the report
visualizes in a tree form and has Actual and % change facts.

2. Performance drivers by product: Allows you to analyze multiple products in one report, this
report shows how the performance drivers have impacted the performance of all selected
products side by side.

3. Performance Drivers by Geography: Allows you to analyze multiple store groups in one report,
this report shows how the performance drivers have impacted the performance of all selected
store groups for one specific product side by side.

4. Performance Drivers by Segment: Allows you to analyze multiple customer groups in one report,
this report shows how the performance drivers have impacted the performance of all selected
customer groups for one specific product and store combination side by side.

5. Performance Drivers by Period: Allows you to analyze multiple time periods in one report, this
report shows how the performance drivers have impacted the performance over time for one
specific product and store combination.

© 2021 Nielsen Consumer LLC. All Rights Reserved. 8