The Data Science Behind Dr. Max's Parcel Locker Network Expansion
Uncover how Dr. Max, one of Europe's largest pharmacy chains, applied data-driven insights to strategically expand their parcel locker network for maximum efficiency.
The Client:
Dr. Max is the second-largest pharmacy chain in Europe, with a presence in six markets of the CEE region (Czech Republic, Slovakia, Poland, Italy, Romania, and Serbia). The company operates over 3000 pharmacies and is renowned for its commitment to accessibility, affordability, and high-quality healthcare. In addition to its extensive network of brick-and-mortar pharmacies, Dr. Max also offers a broad range of products online, including over-the-counter medications, health supplements, beauty products, and pet food.
The Challenge:
Finding the Perfect Spots for Parcel Lockers to Maximize Performance
As Dr. Max ventured into expanding its delivery services for the Czech online shop with parcel lockers, they faced a significant challenge: determining the optimal locations for these lockers. The goal was to offer their customers an easily accessible alternative to their pharmacies, which are widely used as pick-up locations. However, identifying the best spots for these lockers proved to be more complex than anticipated. They needed a reliable method to ensure each locker would perform well, taking into account various factors such as customer accessibility, local competition, and the surrounding environment.
The Solution:
Data-Driven Insights for Strategic Parcel Locker Placement
Dr. Max turned to CleverMaps, with whom they had already established a productive relationship, to tackle this challenge. The solution involved a thorough location analysis, supported by CleverMaps’ advanced data capabilities. Key elements of the solution included:
Identification of KPIs: Pinpointing critical factors that influence locker success, including purchasing power, competitor presence, and proximity to high-traffic areas.
Multi-Dataset Evaluation: Evaluating multiple external datasets to determine which would provide the most value, without the need for upfront purchases.
Ease of Interpretation: Delivering insights that are clear and actionable, enabling Dr. Max to make informed decisions swiftly.
The location analysis focused on crucial parameters such as:
Proximity to ATMs
Population density within a five-minute walking radius
Retail Exposure Index of the locker location
Purchasing power of the neighborhood
These factors were carefully analyzed to identify the top 5-7 parameters that would most significantly impact the performance of each locker.
"The high granularity of data is essential when working with parcel lockers, because their performance is mostly affected by the closest surroundings of the locker, and therefore we wanted to be completely aware of what’s going on around each location."
– Marek Simonik, Head of E-commerce at Dr. Max
The Result:
Strategic Placement of Parcel Lockers Leads to Enhanced Performance
The location analysis provided Dr. Max with a robust set of recommendations for future parcel locker placements. Key results included:
Strategic Placement Near High-Traffic Areas: Locating lockers near supermarkets and bakeries, where customer traffic is consistently high, proved to be a winning strategy.
Preference for Outdoor Locations: Lockers placed outdoors, accessible 24/7, outperformed those located indoors.
Nuanced Understanding of Competitive Placement: While placing lockers near competitors sometimes made sense, the analysis revealed that not all competitor locations were ideal, helping Dr. Max avoid less advantageous spots.
These insights enabled Dr. Max to place their lockers more strategically, ensuring better performance and customer satisfaction.
The Conclusion:
Data-Driven Decisions for Future Parcel Locker Expansion
The collaboration with CleverMaps allowed Dr. Max to make informed, data-driven decisions regarding the placement of their parcel lockers. By utilizing detailed location analysis, Dr. Max could avoid costly mistakes and focus on locations that promised the best return on investment. The success of this initial analysis has set the stage for future evaluations as the network grows, ensuring that Dr. Max stays ahead of market trends and continues to meet customer needs effectively.
Read more about how to find the right location for parcel lockers in our article The Secret of Successful Parcel Locker Networks: The Power of Location Data.
Learn more about the benefits of data-driven parcel locker expansion and let us know if we can find the best spot for your parcel lockers.
