Retail Marketing Analytics for the Industry
In today’s intensely competitive market, the retail industry is facing uncertainties in terms of rapidly changing demographics and frequent fluctuations in the economy. The retailers in the retail space are trying to understand the products and services that are most attractive to the customers. With the altering preferences and shopping behaviors of the customers, leading organizations in the retail industry are advocating the need for marketing analytics. Marketing analytics helps organizations identify potential customers and devise marketing strategies to attract, retain, and improve the value of the customers. Also, various retailers are shifting from a product-centric environment to a customer-centric environment to deliver better-targeted messages to specific segments of the retail industry.
Effectively devising marketing analytics helps retailers identify the customer segments that represent the majority of the sales revenue and margin. To understand the assortments, pricing, service behaviors, and marketing communications, leading businesses are approaching organizations like Quantzig. With years of expertise in offering a plethora of solutions, Quantzig’s marketing analytics solution helps businesses shift toward a more customer-centric business model and determine the most effective marketing campaigns to address the target audience in the retail industry.
The retail industry is a continuously evolving one and the ongoing digitization is driving a new breed of retail that will offer newer experiences to its customers. Disruptions in the form of retail price inflation, customization, and digital disruptions are key factors that define the future of retail. These factors have further leveraged the need to examine the industry from every possible angle and develop a precise marketing plan template that acts as a roadmap to retail success.
A recent survey of several digital advertising decision-makers, including CMOs at some of the largest retailers in the U.S., found that despite the marketing mix being held accountable for growing sales and market share, roadblocks such as increased demands, organizational challenges, and external market forces are impeding success.
Marketing mix modeling acts as a decision-making tool that retail industry players can leverage to figure out an optimal spend allocation strategy. It is the process of quantifying the impact of each marketing vehicle in terms of its marketing effectiveness and ROI. Doing so can help create a roadmap for their future strategy by defining how to plan and adjust their marketing budgets, as well as other tasks such as pricing and distribution strategies.
Quantzig’s marketing mix optimization solutions assist clients in the retail industry space to increase and maintain market shares based on the optimization of marketing spends. Also, through a robust marketing mix model, businesses can evaluate and improve individual and granular ROIs across channels.
Retail Marketing Analytics Challenges Faced by the Client
The client wanted to leverage Quantzig ’s marketing analytics solution to develop a precise marketing plan template. The template was to be used as a roadmap to enhance customer reach and improve the organization’s profits. Additionally, the client wanted to devise the right marketing plan to identify target groups, devise strategies to reach them, and study the future of retail to retain maximum customers.
A leading retail industry player with offices spread across the globe wanted to optimize the mix of short-term and long-term marketing activities to achieve sales growth and increase marketing effectiveness. Additionally, due to the relatively short life cycles for new electronics products, there was a significant dip in their sales. As a result, the retail industry player wanted to determine a proper mix of long-term brand building and short-term marketing activities to increase revenues.
A data-driven, multichannel marketing approach is key to driving sales as a better understanding of customer interactions with your brand empowers you to optimize customer touchpoints and deliver the relevant message, which in turn, ensures the customers engage with your brand while they switch channels. The use of multiple marketing channels also helps you gain a better read on how your campaigns are performing, making sure you spend your marketing dollars efficiently. A multichannel marketing approach is critical to the success of any marketing plan as customers today use several channels to access products and services and often switch channels after a single transaction.
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Revolutionary Retail Marketing Analytics Solutions for the Client
After gaining the desired information about the retail industry, the client was able to assess and identify the impact of marketing on revenue and market shares. The client was also able to increase sales, decrease customer acquisition costs, and further increase the efficiency. Moreover, the client identified the robust marketing campaigns or channels, where the customers interacted before purchasing the products. Robust marketing analytics solution also helped the client identify the average value and quantity of items purchased per transaction to further measure the market performance.
In a highly competitive retail market space there are many factors that affect sales revenue. A marketing mix strategy helps to examine the major factors which are responsible for explaining the sales variation in a given period by categorizing them into- base factors, macroeconomic factors, and promotions. Constant sales variations due to several such factors prompted a retail industry player to leverage marketing mix modeling techniques to examine the major factors affecting their sales over of period of time. The client also wanted to use Quantzig’s marketing mix modeling (MMM) solutions to measure the impact of their marketing investments on sales and optimize marketing spend.
The requirements of the retail industry client were quite specific, and to meet them our marketing mix modeling experts collaborated with the client’s team to evaluate the impact of their marketing strategies and develop ROI simulators for scenario analysis and planning. A detailed assessment of the marketing performance of different media platforms offered detailed insights into media contributions and insights. Also, by employing a team of experts with a clear understanding of the client’s industry we offered tailored marketing mix modeling solutions to help them gain accurate insights into the ROI of their marketing efforts, understand the impact of changing their marketing strategies, and to measure the effectiveness of their overall marketing campaigns.
Based on their business requirements, the client joined forces with Quantzig’s team to yield a wealth of quantitative insights on the negative impact of competitor sales for products in the same category. The marketing mix solution helped the client measure the effectiveness of activities by selling seasons. Also, we provided additional insights into how the retailer should reschedule manufacturing activities to support key selling seasons, leading to an increase of 12% in returns.
Quantzig’s marketing analytics experts offered an intelligent, integrated multichannel marketing solution that focused on combining multiple channel data streams to maximize the return on investment from specific customer groups and reduce the rate of cart abandonment. Apart from offering a seamless, consistent experience for their prospects the multichannel marketing strategy enabled the client to improve the customer experience, create targeted messaging, attribute revenue to specific marketing campaigns, and boost the overall MROI. By using a better multichannel marketing strategy the client was able to focus their marketing dollars on specific segments, which in turn, helped them recover nearly 10% of abandoned cart revenue and increase order value from these abandoned carts by over 20%.
Quantzig’s data-driven marketing strategy helped the client use data to obtain actionable insights and drive strategic decisions. Quantzig’s industry specialists performed a marketing analysis to enhance their business efficiency. Our expertise in analyzing datasets helped this retail grocery chain giant improve the marketing channel’s transparency and enhanced accountability and credibility of their marketing strategies.
Key-Takeaways
Quantzig’s marketing analytics solution helped the retail firm to devise and keep track of their marketing plan by analyzing the future of retail and its impact on their marketing tactics; thereby, saving a huge portion of their marking dollars. The development of a marketing plan template also enabled them to align their marketing goals with their business plans to get the best return on marketing spend.
The new multichannel marketing strategy also helped the client to:
- Effectively measure, manage, and analyze marketing performance to maximize the ROI
- Identify the customer and devise a robust customer engagement
- Understand the impact of marketing spend across channels
- Manually track spends and its corresponding impact in the retail space
- Improve their ability to quantify the marketing effectiveness of channels and campaigns in terms of the revenue and incremental sales
- Identify the direct and indirect impact of media types on incremental sales
