Issue link: https://resources.tangoanalytics.com/i/1465854
tangoanalytics.com 2 Utilizing Tango's Data-Driven Insights Northern Tool used Tango Predictive Analytics to gain data-driven insights that were pivotal in making informed decisions. Tango's models provided valuable information beyond superficial site characteristics, offering a comprehensive view that went beyond human intuition. This allowed the company to focus on key market nodes and optimize their expansion strategy for maximum potential. Tango's data points provided a more accurate representation of the real impact of opening new stores, reducing reliance on subjective assessments from real estate managers. The objectivity of the model aided the executive team's commitment to data-driven decision- making. SOLUTION RESULTS Lessons from COVID-19 and Real Estate Strategy COVID-19 underscored the importance of growth and adaptation. The demand surge in home improvement reinforced the need for expansion. Northern Tool's real estate strategy focused on strategically placed locations in suburbs, guided by Tango's machine learning and AI models. Interstate proximity and density ratings were key considerations, enabling the company to penetrate higher-density neighborhoods strategically while at the same time being easily accessible for commercial customers. Transition from Catalog to E-commerce Despite a significant catalog business, Northern Tool acknowledged the shift towards e-commerce and retail channels. E-commerce and catalog sales accounted for a substantial portion of their business, with retail channel growth outpacing direct sales. The company's adaptability during the COVID-19 pandemic, including the adoption of curbside pickup, showcased the benefits of continued strength of an omnichannel approach. Northern Tool's journey, guided by Tango's data-driven insights, demonstrates the power of informed expansion strategies. By utilizing Tango's advanced Predictive Analytics solution, the company optimized site selection, adapted to changing customer profiles, and continued to strengthen their omnichannel approach. The collaborative effort between Northern Tool and Tango showcases how data-driven decisions fuel successful strategic growth in the ever-evolving retail landscape. CONCLUSION CASE STUDY: NORTHERN TOOL'S EXPANSION STRATEGY