To attract more customers and increase the sales, brick and mortar retailers have to consider investing in data analytics. The software generating customer data will not only enhance the consumers and sellers relationship but also increase the sales rapidly.
FREMONT, CA: The industries that have been doing their businesses in the traditional method but turned over by the rapid advancement of internet and mobile usage, retail is possibly the most affected among the others. Technology has introduced the customers with new purchasing behavior, and the growth of e-commerce has provided the retailers with new methods to reach their customers. But on the contrary, it has become challenging for midsize retailers to remain in the competition against the global online market, while the customers' expectations are continuously rising.
Now, in response to the challenges, retailers are rapidly turning to data and analytics so that they can make better business decisions and also guide customer marketing initiatives. While some of the retailers are still learning the procedure to collect the customer data, others who already possess it are not sure about the next steps to be taken.
Retailers must understand the consumers well. External data sources together such as location, demographics, and market data, along with the customer data such as loyalty status and transaction history, can help understanding customer behavior better. After identifying the causes and checking the accuracy of the data, traders will start to understand their consumers in detail.
The retailers can get relevant data through multiple processes that contain cleansing and validating data against the existing authoritative source for meeting accuracy. The relevant data lessens the mistakes and also minimizes the costs related to wrong data, such as failed delivery attempts.
Apart from the single customer view, there are also other methods in which data can help the retailers improve their revenue and performance.
Start with the Right Tools
Many retailers have difficulties with data-centric efforts as they lack proper tools to collect and harness the information. In many cases, businesses may have the machines, but they do not know how to use them to their full potential. Most of the modern POS solutions nowadays have reporting features that focus on the crucial elements such as basket sizes, sales trends, profit margins, customer counts, and many more.
The POS software can instantly tell the products or suppliers that are driving the revenue just by looking at the sales reports, which helps businesses plan their stock accordingly.
Increasing Average Standard Value
Most of the online retailers have already mastered the method of increasing their cart value by recommending the additional products that are popular among consumers. The analytics engines make these type of decisions by dynamically identifying the trends and upselling opportunities. The data helps retailers offer customers the combination of products and prices that will appeal to them.
Email Marketing Software
When a retailer is keeping in touch with their customers through email, they have to ensure to track open rates, clicks, and times of engagement. Retailers must always dig into the data whenever they send out messages to the customers as email marketing software will provide the necessary information.
The open rate data will give a better idea about the subject lines that are working well so that the retailers can optimize them accordingly. Besides, dealers also must pay attention to the timings when people are reading their messages so that they can adjust the time of their campaign effectively.
Foot Traffic Analytics
The retailers who have not yet implemented the foot traffic analytics must consider doing that in their store immediately. There are various tools available with this software, and it provides data such as customer counts and dwells time. With that data, it will become more accessible for the traders to collect information on the traffic of the website, and what part of it is receiving the maximum number of visitors.
Empower the Customers to Share their Details Actively
A retailer needs to collect data on sales and shopper's behavior, but it is not a good idea to collect personal information from the background.
Maximum information about customers can be gathered by making them a vital part of the process. Sellers can encourage their customers and potential clients to share their data through conversations, surveys, and other research methods. A good discussion will not only help the customer and seller know each other but will also build trust among them.
The customers will also understand that the companies value their input when they see organizations are using the information to good use, and be more inclined to the store.
The retailers who want to thrive in the upcoming years must not forget to incorporate data in their decisions. Setting the right tools and learning how to gather data may take some time, but the result will be fruitful. Sellers must not be afraid to seek advice, and if it is not possible to have in-house data specialists, then it will be helpful to partner with external experts and know the best use of the existing data and identify the new ones to enrich customer experience and profit margin.