You have a large Retail store, a Brick-and-Mortar one, with a plethora of products to sell. From fresh vegetables, fruits, grocery items, kitchen utensils, baby products, toiletries, beauty products for women, books and DVDs, and what not! Though you have every product for your customers under one roof, sales figures are not that impressive. You fail to fathom why! What is it? Is your customers not liking your products or they are not aware of the benefits of your merchandise has to offer, or how these products are going to solve your customers’ problems?
Well, imagine the following situation:
Imagine that your store’s customers are conversing with you. They are informing you what products they like, what they dislike, how they are going to shop, what benefits they are looking for, how they want personalized offers, etc. Accessing all such information and making it part of your marketing strategy will help you connect with the right customers, as well as provide a customer-focused shopping environment.
So, What Is the Challenge?
The challenge for retailers is their incapability to understand a customer’s purchasing behavior and how he would like to spend their money. This is where the importance of retail analytics comes into play. To overcome the challenge, it is imperative to layer them with data derived from CRM systems. When it comes to retail stores, the marketing department takes important decisions pertaining to CRM data. These CRM applications and systems tell retailers:
- Who are their customers
- What is their behavior as to specific products
- What products they like or dislike
- How they like spend
- How frequently they shop
The marketing department considers all such information so that it is able to come up with a customer-centric marketing strategy.
The same rule holds true for the merchandising department too. Merchants do take decisions pertaining to assortment and allotment but lack the ability to share crucial information with the marketing department or the rest of the business. Both the marketing and merchandising department have less visibility when it comes to the decisions they are taking and the reason for taking any decision.
What Do You Risk with No Insight into Customer Data?
With no proper insight into customer data, you run the following risks:
- Marketing about your retail store and its products to the wrong customers
- Spending on product promotions with less than the best varieties at your store level
- Reaching out to wrong customers
- Dearth of essential details pertaining to buyers’ purchasing behavior
Customer data is important to ascertain whether your marketing efforts are effective or not. With in-store analytics, retailers can make sense of the data related to customer segments so that they can implement customer-centric marketing strategy, thus giving you a centralized vision of the store’s actual buyers or customers.
EMPLOYING RETAIL ANALYTICS TO BUILD CUSTOMER-CENTRIC MARKETING TACTICS
Measure Responses from Promotional Efforts: Analysis of your promotional efforts will help you ascertain how it has affected consumers’ buying decisions over several attempts to reach out to them. Merging customer-focused data with retail analytics will tell you:
- How your customers have bought products from your store
- How marketing has inspired them to purchase
- Where your marketing or promotional efforts have the maximum impact
Understand and Analyze What Customers Are Buying: As far as retail analytics is concerned, it will help you help you get a 360o view of your store’s performance as well as consumer interactions via region, district and channel. You can leverage actual history of transactions to categorize buyers and start creating targeted and creative marketing campaigns or promotions for your niche audience.
By evaluating customer behavior, buying habits and related data, you can determine:
- Which products sell better
- Which items drive maximum sales
- Which products sell together frequently
Retailers and Marketers can make the most of these insights to come up with strategic planning and decision pertaining to website presentations, catalogs, promotional offers, and lookbooks.
Examine New and Old Customers: With the help of retail business intelligence and analytics, you precisely know who your customers are and how their shopping behavior change in the course of time.
- You also get to make a comparative analysis of new and old customers to understand where your marketing strategies have the maximum impact.
- Learn which segment of your customers are giving you the maximum ROI
- Learn which segment is helping you with repeat business and which needs more focus, effort and marketing
Comparative Analysis of Events and Promotions: By doing a comparative analysis of events and store promotions, you can actually get to learn about customer response and sales. This data or information will help you ascertain whether your events and promotions have given you any result or not. It will also help you evaluate the impact of promotions or an event, and help you determine whether to repeat such events in the future or not.
Do you have a foolproof retail analytics in place to build a sound customer-centric marketing strategy? Please share your valuable comments with us.