In today’s fast paced commercial landscape, most consumers are looking to engage with retailers using all possible channels: online, mobile, store, and social. As more and more consumers seek instant products and services to meet their constantly changing demands, the ability of retailers to respond quickly is key to their business success.
The sangrail of modern merchandising is consistently maintaining great understanding of consumer needs and their purchasing decisions. Without insights into shoppers’ behavior, it will be impossible for retailers to merchandise in a way that ensures consumer loyalty and return/repeat business. However, many retailers have found it especially daunting to build a solid merchandising strategy.
The Solution: Retail Analytics
Without a doubt, the retail marketplace is undergoing unparalleled revolution. As the pace continues to accelerate, the landscape is increasingly becoming challenging for retailers to keep up. With retail intelligence and insights into shopper behavior in place, retailers will be better equipped to fulfill consumer needs. But how can retail data analytics help you build a modern merchandise solution for your business?
Build a Consumer-focused Strategy
Your retail space has to represent your most effective salesperson – and this can only be achieved using retail visual merchandising. Retail visual merchandising is an invaluable strategy that optimizes your retail store, allowing you maximize productivity with aesthetic, curated, and well-thought-out product displays. However, creating effective and productive retail visual merchandising requires in-depth knowledge of your target customer.
Beyond having the knowledge of customers’ demographic data such as their education level, income, and age, it is important that a savvy retailer understands a customer’s behavior. With retail analytics, you can comb through valuable customer data using your point-of-sale system to not just target individual customers, but understand their lifestyles. Interestingly too, with platforms such as Smart Retailer, Shopify, Pinterest, and Design Retail Online, you do not have to wait for an effective retail visual merchandising idea to hit you. The resources therein can help you build modern merchandise solutions and address customer needs.
In addition to giving you the ability to understand shopper behavior, retail data analytics can also help you achieve better price points. One way you can do this is by comparing the available data sets, which will give you a view of the bigger picture when it comes to pricing in the marketplace. Considering that consumers are generally price sensitive, effective pricing analysis with retail analytics will help you know if your pricing is competitive enough.
Prior to the introduction of analytics into the retail landscape, retailers only reduce product pricing at the end of a buying season, at a time when the demand for such product was almost gone. Retail analytics will help you know what your target consumer needs at a specific time and which products will require an increase or a discount to sustain consumer loyalty.
Retail data analytics helps retailers make more informed, smarter decisions to ensure consumer loyalty and profitability. A major way to achieve this is by determining how each consumer should be treated. For instance, will it be ideal to offer Shopper A free delivery? Or, would that offer be a waste since the shopper will purchase the product anyway? When potential consumers visit a brick-and-mortar or online store for the first time, the retailer knows nothing about such one. But by observing how the consumer clicks on different products or categories or makes certain purchases, the retailer will better understand the unique behavior of such one – and make decisions that drive profitability.
As the pace and complexity of the retail landscape changes, retail data analytics will become more critical to the success of the daily tasks of retail merchandising. The insights provided by these systems and tools will help retailers focus on the most important marketing strategies rather than implementing “fire drill” approach.