Uncertain times call for innovation. As the market continues to slow and the country grapples with record inflation, more retailers are searching for solutions. One place organizations of all shapes and sizes would be remiss to overlook is modern-era analytics. Below is a brief look into the mounting sources of information available, as well as the processes to analyze the data. Thus allowing retailers to draw new possibilities from it.
In the not-so-distant past, companies could only rely on internal data to guide their various marketing strategies. Today, that pool of information grows exponentially every second as Big Data amasses every kernel it can muster. From consumer data and demographics to geolocation of sales and omnichannel purchase histories, the insight to be gained into a target audience is immense. What’s more, third-party datasets can further enable enhanced customer profiling when accessed via advanced analytical techniques and software platforms.
In turn, this insight could be used to develop strategies for improving appeal to new customers. Or, for driving engagement of active clientele, and recapturing those who have become inactive. Doing so, however, requires a well-planned approach and the right data strategies. It also takes a strong focus on staying ahead of changing consumer behaviors. There are also other factors contributing to our current, hyper-challenging growth climate.
Fortunately, there are a number of transformative actions retailers can take to augment future performance despite inflationary and customer-related pressures. A good place to start is to revise existing strategies. In the present climate, consumers are trending as less brand-loyal as they turn to private-brand goods to contend with the demands of inflation. Companies can use customer analytics and market trends to their advantage in such scenarios through purposeful re-examination and work to make more informed category-strategy decisions.
Alongside this approach is that of adopting a sound test-and-learn environment. Once again utilizing advanced consumer data, an analytic team can experiment with growth initiatives and conduct transformational analysis via this test-and-learn environment. The results of these forecasted outcomes can provide further insight. For instance, the findings may show a younger audience might be better engaged when store formats are refocused, or the rate of e-commerce acquisitions could be boosted when a company chooses to invest in experiential online content and virtual interactions. Such complex experimentations require cutting-edge platforms and next-gen tools for optimal results.
Possessing the capabilities to quickly take in and decipher consumer intelligence gives retailers a competitive edge. However, achieving this relies on a thorough, up-to-the-minute understanding of the customer base and its behaviors. It’s with a comprehensive approach and sound investments in a smart technological environment that these data analytics may be generated and used to an organization’s advantage. For additional strategies to better meet customer needs, please see the accompanying resource.
Provided by Riveron – professionals in accounting advisory
