Many retailers cannot afford conducting market/consumer research and surveys. Besides being expensive and time-consuming, the outcome of attitudinal research and surveys is questionable.
Although the vast majority of today’s retailers maintain customer databases at lower costs, only a few utilize these data. In current markets, customer databases are considered underutilized marketing resources which, once properly used, could well increase revenues. More retailers have recently been encouraged to invest in database marketing and consumer-base analysis. Customer data have become a significant source of revenues and help retailers furnish insights into the behaviours of their customers. It is time for retailers to leverage their existing customer data.
Retailers adopting print marketing techniques can use predictive modelling to 1) save the cost of communicating with customers unlikely to respond; 2 customize their messages/offerings; and 3) ensure that each customer receives the right catalogue, brochure, or invitation letter.
- Tailor the look and feel of its stores in particular markets to fit the representation of the segments in these markets;
- Train its store staff to recognize customers from each segment and serve them appropriately.