The retail sector has seen lots of uncertainty due to the fragile state of the economy. The customer today is very knowledgeable and thus very demanding. Retailers need to be very adaptive to be able to engage customers. To effectively manage and forecast future performances retailers need to be able to answer complicated questions.
Analytical tools can help retailers connect with customers at every stage of the product lifecycle by turning the patterns into valuable insights that describe, predict and improve business performance.
Oftentimes as the questions retailers need to ask themselves are enterprise level in nature, a traditional siloed approach to data analysis is not enough:
- Who are the next 100 or 1000 customers we will lose — and why will be lose them?
- What can we do to stop losing those customers?
- Which suppliers are most at risk of going out of business?
- Which customers are our biggest influencers?
- Will our workforce profile match our needs in two years?
- How will demographic shifts affect our market share?
- Which high-performing associates are we at risk of losing?
- Advanced analytics represent a portfolio of tools, techniques, and organizational capabilities that can be applied to specific decisions across a wide range of business concerns.
Market basket and affinity analysis can help identify customers purchase habits over a period of time. Find more opportunities for cross selling and up selling more profitable brands within purchased categories and find out the best incentives you can offer. The Market Basket and Affinity Analysis also offers a deep dive into promotional and price effectiveness as well as customer profitability assessments.
- Most popular basket affinities for your customer base
- Identification of product affinities
- Evaluation of basket ratio of promoted versus everyday priced products
- Promotional cannibalization on categories
Analytics helps retailer find the best way to earn customer loyalty and turn them into a repeat customer.
Advantages of implementing a customer loyalty program:
- Acquiring new customers can cost five times more than retaining existing customers
- The customer profitability rate tends to increase over the life of a retained customer For example reducing customer churn by 5% may increase profits by almost 25% to 125%
- The probability of selling to an existing customer is 60% to 70%, while the probability of selling to a new prospect is 5% to 20%
- Almost 70% of the identifiable reasons why customers typically shift loyalties have nothing to do with the product. The prevailing reason for switching is poor quality of service
Modak Analytics can transform your retail business to achieve a significant competitive advantage through customer loyalty. Analytics can help retailers gain deeper insights from their data and utilize the Modaks ‘Action Cluster’ for formulating better marketing strategies. Analytics can play a big role in retaining and acquiring customers, improving loyalty and driving revenue and profitability.Modak’s Action Cluster = Customer Segment + Customer profiling + Data insights + Future Action Plan
With our analytical tools, retailers can:
- Identify their most profitable target customer base through customer segmentation and profiling.
- Develop close relationships with customers based on a deep understanding of their behaviours, predicting future behaviour and iden¬tifying their needs.
- Deliver targeted advertising, promotions and product offers to customers that meet their individual needs and motivate them to buy.
- Tailor pricing strategies that provide competi¬tive prices while maintaining profit margins.
- Maximize marketing investments and allocation across various media and marketing channels.