Merchandise Case Study
Client Data Profile
• Former industry-leading merchandiser, designer and manufacturer of retail apparel for over 1000 global clients including HBO, Universal studios and Sea World
• The client has since dissolved but maintains data value in branding, merchandising and social media that exceeds 2 billion data points
Objectives
• The client had a data valuation completed to identify, understand and leverage the value of their largest intangible asset since dissolving. The financing could also be used to fund personal and charitable initiatives.
• Additionally, the client had their customer list/CRM valued to understand the use of the CRM data and add the value to their balance sheet.
Our approach
Methodologies Utilised
A mathematical hybrid of:
Customer Lifetime Value Method: Determining the customer list value using relative customer value, duration and costs associated with storing customer information.
Cost Method: Determining the price point and replacement value of data, with client specific financials and statistics, in addition to extra research to ensure the values align with industry standards
Rationale for models selection
The client had well documented costs associated with data. Unit costs for raw data were attributed and the client was able to determine revenue per customer. The hybrid valuation allows us to capture data value from multiple perspectives.
Insights & Recommendations
• Data Value as an intangible asset
• Replacement value and unit costs of data
• Recommendations on for data monetisation and strategy
• Additional intangible asset