A proper diagnosis of a business issue is necessary before ‘guessing’ the solution. One useful way to reduce risk and maximise certainty is to utilize existing data to examine the problem and test solutions prior to putting them into practice.
- your strengths & weaknesses
- who your business is serving
- the behaviour of your customer
- how to best communicate with your customers
- how to improve your marketing productivity
- who is loyal to your business
- how to manage your customer relationship
NeoRetailing utilizes available data to diagnose the problem, identifies its source, and proposes solutions that are in line with the retailer’s strategic objectives and suit its current internal capacity.
It is no news that the competition in the retailing sector became tougher making it harder to win a customer retain a customer, and increase the share-of-wallet. Thus, mining data for useful information is important to secure a good position in the market and consumer’s mind. To lead in the market, a retailer should go the extra mile and fulfil the unmet needs of consumers. Data do hide a lot of useful, game-changing information!
Thomas Blischok found that the sales of diapers correlate positively and strongly with the sales of beer between 5pm and 7pm. When the two items were placed next each other in the store, the sales of both rise remarkably.
Understanding the behaviours of consumers well enough to accurately predict it is the dream of direct marketers. This is because being able to predict customer actions rises profit significantly. In fact, recent studies found that a 1% increase in the accuracy of predicting customer actions can rise profits by 200%.
Nielsen predicts that “86% of retail growth over the next 10 years will be driven by multicultural consumers”. Consumers from different cultural backgrounds shop, spend, and respond to marketing messages differently. A well-prepared retailer will not be shocked by these differences and, instead, takes advantage, grows, and leads.