Top 4 Retail Analytics Trends Shaping the Retail Industry in 2019
Retail stores have progressed a long way in terms of efficiency. Planogram and store layouts are not merely a means of depicting aesthetical ability. The layout plays a pivotal role in stimulating parts of the consumers’ brain to purchase goods and service. It’s all part of the experience. Using soothing scent, playing background music to set the mood, using colored lights for appropriate luminance, and appealing visual cues influence customers to reach out for their wallets. Although customers may have their pre-determined shopping list, they end up impulse buying more often than not. It’s amazing when you think that billions of dollars are spent on advertising products in the real world, and yet when consumers step to the store, decisions are made instantly when they see products on the store. Shopper marketing focuses on driving such behavior. Today, increasing shopper marketing ROI is not only limited to brick and mortar stores but also the e-commerce sector. So how can shopper marketing help boost sales?
Sell to the actual shopper
There is a fine line between a shopper and a consumer. Nevertheless, the line does exist. In a microscopic view, consumers use the products; whereas, shoppers buy. Shoppers buy the product for their children, husband, wife, or friends. They buy based on what they think others might need. So it is essential to understand what really drives such shoppers to buy from a particular brand or a product. It is also necessary to know what stops them from buying a certain brand and how they perceive the pricing.
Know your brand
Every brand spends millions of dollars on market research to know how customers perceive their brand. However, it is essential to have the same level of understanding as it influences shopper choice. Not every brand is created equal; some shoppers are driven by price, some by brand image, others by trust and quality. One tactic that always works is when brands drive up the benefit but bring the costs down. People may have their favorite brand of beer, and when the brand is not available, they may choose not to buy beer at all.
Retail stores are always facing the pressure to control their costs as they operate in a very tight margin. One way to drive the efficiency is by collaborating with retail partners. Understanding their workings can help react to customer behavior and economy changes and bring in new opportunities. For instance, Kraft and Wal-Mart partnered together to create simple mealtime ideas banner, which offered shoppers affordable and delicious meal solutions. The program used advertising mediums such as POP materials, sampling, emails, print ads, and in-store screens to increase visibility, which increased shopper marketing ROI.
Understanding shopper segments
No two shoppers are identical. They differ in terms of demographics, behavior, psychographics, and geography. Retailers should understand customer segments better to tailor their offering towards a particular segment. For instance, the age factor decides what kind of chocolates customers prefer. Segmentation should not be limited only to demographics, since shoppers with frugal financial mindset may not opt for premium products even if they fall in the same age category.
Customer behavior is always evolving, and so is the retail landscape. Retailers should constantly evaluate their shipper marketing performance to address changes in the environment. It prepares them for any unforeseen changes in the customer behavior or the economy.
To know more about shopper marketing ROI, retail industry, and retail analytics:
LONDON: Quantzig, a global analytics services provider, has recently completed their latest digital analytics for a fashion retail client. The fashion retail industry, at large, is shifting toward digitization to stay abreast of all the new developments. In the current market landscape, the exponential progress in technology is compelling businesses to use digital analytics to improve their business models. Also, with the brick-and-mortar store’s traffic going downhill, companies in the fashion retail sector are looking for more efficient ways to reduce store operating costs, innovative in-store experiences, and re-evaluate store networks.
“Digital analytics solutions include the collection, measurement, and analysis of digital data in terms of the user behavior on the websites and mobile applications. With the help of the digital analytics engagement, the fashion retailer was able to monitor the visitor activity over time to further inform and develop a targeted marketing plan.” says an industry expert from Quantzig.
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The digital analytics solution helped the fashion retail client understand the customer behavior, anticipate customer movements, and interpret messages in driving customers to conversion. The solution also helped the client calculate the return on investment for each marketing channel. The client was also able to manage their digital marketing efforts with flexible dashboards and benchmarks.
Additional Benefits of the Digital Analytics Solution
- Track and analyze visitor behavior over time and across multiple channels
- Offer personalized marketing action to target specific customer requirements.
- To know more, request a free proposal
To know more about how our digital analytics solution helped the fashion retail client
For long, the applications of big data analytics in various industries such as healthcare, finance, marketing, and telecom have been the talk of the town. Interestingly, the use cases of big data are not limited to these sectors alone. This advanced technology is slowly spreading its wings in the fashion industry. With a large number of designers and latest technologies becoming prevalent in this niche market, the fashion industry is not all about playing the ‘dress-up’ game anymore. Big data has given countless businesses a substantial competitive advantage by redefining the quality of data available and the speed at which they can respond to market conditions. And the icing on the cake? Profits have soared consequently. Though the fashion industry has lagged behind when it comes to embracing this technology, the stakeholders in the fashion industry have realized that data analytics can work wonders for them. Here are five ways big data analytics will be a game changer in fashion:
The trends in the fashion industry change faster than you can change your clothes. What was trending yesterday could become outdated by the next fortnight. In such a dynamic market, monitoring the changes using traditional methods often prove to be ineffective. Using big data analytics, fashion industry players can easily understand the market changes using techniques such as sentiment analysis on social media and know their target audience. What more? Data analytics can analyze the impact different seasonal trends have on the buying behavior. This will help retailers in the fashion industry to make the right merchandising decisions in future.
Identify target markets
It is a stated fact that culture influences fashion and trends to a large extent. For instance, a fashion trend that is ‘hot’ in the USA might be considered too revealing for middle-eastern countries. However, the same designs can be widely accepted in countries like Spain. Big data helps you analyze the preferences of people across the globe and provide insights into the changes in mindset with culture. With this, fashion industry retailers can target a wider audience for their designs; thus, bringing more potential for outreach and revenue.
The client: A prominent fashion retailer
Area of engagement: Digital analytics
Amid the recent economic uncertainty, companies in the fashion retail industry have started re-aligning their product offerings to expand their customer base and boost revenues. The fashion retail industry, at large, is shifting toward digitization to stay abreast of all the new developments. Moreover, in the current market landscape, the proliferation of data and exponential increase in technology are compelling businesses to leverage digital analytics to improve their business models. Also, with a radical decline in the brick-and-mortar store’s traffic, companies in the fashion retail space are looking for efficient ways to reduce store operating costs, re-evaluate store networks, and innovative in-store experiences.
Here are some of the prominent factors influencing the growth of the fashion retail space:
- Consumerism: As the retail industry is shifting toward a consumer-centric business model, the preferences of the consumers keep Leading fashion retailers are under constant pressure to offer products that meet the needs and wants of the customers. Moreover, with the growing number of e-retailers, prominent companies have started facing the need to expand their product range, collections, and packaging options to enhance brand loyalty and retain the most profitable customers.
- The ‘Black Friday’ effect: With the availability of discounts and offers on Black Friday, fashion retailers are under the pressure to offer huge discounts on apparels. Since e-commerce platforms offer these discounts on an everyday basis, brick and mortar businesses have started to promote their products with seasonal discounts and offers.
To identify and reach out to the customers in an agile and seamless manner, prominent businesses in the fashion retail industry are leveraging digital analytics solutions. Digital analytics solutions involve the collection, measurement, and analysis of digital data in terms of the user behavior on the websites and mobile applications.
The Business Challenge
The client, a renowned fashion retailer, wanted to understand how their websites are performing and optimize their customer experience to improve the business performance. The client wanted to leverage the use of predictive analytics to accurately measure the business metrics in terms of traffic, leads, and sales. The client wanted to understand the effectiveness of their marketing campaigns on the website’s performance. With the help of Quantzig’s digital analytics solution, the client in the fashion retail space wanted to diagnose deficiencies in specific channels in their marketing mix and make adjustment to strategies to enhance their overall marketing activity.
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The Solution Benefits and the Business Impact
Strategies that we recommend based on our analysis to improve customer satisfaction
The digital analytics solution offered by Quantzig helped the prominent fashion retailer understand the customer behavior, anticipate customer movements, and interpret messages in driving customers to conversion. The fashion retailer was able to understand how well the businesses are performing. Moreover, the engagement also focused on tracking and analyzing visitor behavior over time and across multiple channels. Moreover, the client was able to offer personalized marketing action to target specific customer requirements.
Digital Analytics Solution Predictive Insights:
With the aid of the digital analytics engagement, the fashion retailer was able to monitor the visitor activity over time to further inform and develop a targeted marketing plan. The engagement also helped the client quickly calculate the return on investment for each marketing channel. Moreover, the client was able to manage their digital marketing efforts with flexible dashboards and benchmarks.