In retail, data mining is most often associated with the uncovering of abstract relationships between product sales, or the discovery of hidden consumer trends.
But The Sports Authority, Fort Lauderdale, Fla., is testing a software application that applies data mining technology specifically toward its work force, in hopes of discovering which of its hourly job applicants are turnover risks and which are likely to remain long after they're hired.
This new analytical solution serves as an enhancement to the applicant-screening kiosks rolled out last summer to about 180 of the retailer's stores. Job applicants are directed to these kiosks, where they fill out questionnaires designed to identify candidates who meet The Sports Authority's employment qualifications.
Test answers are then electronically transmitted to an application service provider (ASP), where the results are evaluated and communicated back to the store manager.
The screening solution has already increased the number of walk-in applicants and also freed up store managers' schedules, but now the retailer wants to improve retention by using the solution to reduce the number of hourly employees who have a tendency to quit prematurely. The data mining solution, running as of this month, may play an important role in helping The Sports Authority recognize applicant responses that can predict job tenure.
Based on results that other retailers have achieved with the same solution, 'we can expect to find a decrease in turnover of over 10 percent,' said Laurie Saylor, director of employee relations and staffing.
According to Saylor, when a worker leaves the company, The Sports Authority will conduct an exit interview, asking him to explain his reasons for leaving. The retailer will then measure the employee's responses, as well his length of service, against his original applicant information.
'Most companies in the retail industry are not predicting tenure,' said Saylor. 'Retention is an issue for all retailers, and in an attempt to positively impact our retention, we've decided it's important to measure tenure to better select employees who are more apt to stay with us longer.'
As time goes on, and The Sports Authority collects a substantial number of exit interviews, patterns will likely develop, indicating key links between applicant information and tenure.
Until the retailer can collect enough exit interviews to begin detecting its own unique patterns, The Sports Authority will use information previously aggregated by Beaverton, Ore.-based Unicru, the ASP providing both the screening solution and the retention enhancement. The Sports Authority predicts it may take about six months before it can use its own data.
Saylor cited one intriguing pattern that Unicru apparently turned up through studies of its own. 'If an applicant remembers his employer's name from two jobs prior, they tend to stay longer,' said Saylor. 'That's a little piece of data you wouldn't think to factor in initially.'
Meanwhile, the kiosks continue to succeed at their original purpose -- recruitment. 'What sticks in my mind is that ... from August through December, I think we had around 50,000 people apply for jobs in our stores. It was phenomenal,' said Paul Lockard, senior vice-president of human resources. About half of these applicants met Sports Authority's hiring standards, he said.
Lockard also said the retailer's advertising costs have dropped significantly in the past six months because the surge in applicants reduced the need to take out help-wanted ads. 'What we used to spend in classified advertisements was dramatically cut,' according to Lockard. 'That's proof that we're getting enough candidates at the store level.'
Wilsons Taps Michielutti As Senior V-P, CFO
BROOKLYN PARK, Minn. -- Wilsons The Leather Experts has announced the appointment of Peter Michielutti as its new senior vice-president and chief financial officer.
Prior to this appointment, Michielutti was vice-chairman of information services at Minneapolis-based U.S. Bancorp, where he spearheaded the bank's operations, information services and technology endeavors. Michielutti also served as chief operating officer and chief financial officer at Minnetonka, Minn.-based Fingerhut.
'We are very pleased to have Peter Michielutti on board as a member of senior management as he brings a diverse background to our company,' said David Rogers, president and chief operating officer of Wilsons Leather. 'Peter's extensive experience in operations and technology, coupled with his 20-plus years in the finance arena with several high-profile public companies, will prove to be a tremendous asset as we move forward in our business diversification and expansion strategy.'
CRM Spending Seen Hitting $76.3B in 2005
STAMFORD, Conn. -- Worldwide customer relationship management (CRM) spending will reach $76.3 billion in 2005, up from $23 billion in 2000, according to market research firm Gartner Group.
Gartner analysts said that to be successful in business, a CRM strategy is essential and that executives must understand and leverage technologies across all customer channels.
'Customer loyalty has always been valuable, but today it is vital for success,' said Rob DeSisto, Gartner vice-president. 'CRM is a business strategy and any notion of applying technology to customer relationships will fail unless business executives understand clearly the key decisions they must make.'
