NeoRetailing offers a range of analytics services developed to meet the needs of contemporary retailers. Requesting/selecting a service should depend on the nature of the problem/s at hand and/or on the goals of your business.
Remember!
A problem well put is half solved

John Dewey

If I had an hour to solve a problem, I’d spend 55 minutes thinking about the problem and 5 minutes thinking about the solution.

Albert Einstein

Whether it is a convenience store, apparel store, restaurant, or a bank branch, one of the most important decision a retailer ever makes is selecting a store location. Reasons why this is extremely important include:

  • the high renting, buying, or building costs;
  • entering into long-term contracts;
  • security issues in the area; and
  • infrastructural and/or road network developments that affect the flow of foot traffic.

Store success correlates positively with its location; the better the location is, the more potential there is for it to succeed. Therefore, when making locations decisions, retailers increase certainty through using a number of analytical approaches and tools such as the three below.

Gravity Analysis

Assess the potential, and estimate the sales, of a new retail location through performing a gravity analysis (known as spatial interaction modelling).

Analog Analysis

Identify and evaluate potential store locations with characteristics resembling a well-performing retail store of your choice .

Market Analysis

Identify and evaluate potential market areas with specific attributes to expand your business with confidence.

The era during which the mass market was targeted had long ended. Markets are increasingly becoming fragmented. A clear definition of customers is essential to the success of any business operating in contemporary markets. This is because it helps:

  • save considerable amounts of money;
  • better serve the needs of existing customers:
  • effectively communicate with customers; and
  • convert disloyal customers into loyal ones.

The choice of the segmentation approach is usually influenced by the nature of the offered product/service while the choice of the targeting approach/method depends on the definition of the target market. If you are a government agent, you are most likely to be segmenting your target audience using geographic segmentation; if your business is a pharmacy, you are most likely to be segmenting your target market using demographic segmentation; and if your business is a supermarket, you are most likely to be segmenting your customers using behavioural segmentation. However, several retailers use a combination of these segmentation & targeting approaches.

Geographic S&T

Segment your customers using geographic variables such as neighborhoods, districts, cities, regions, and lands.

Demographic S&T

Segment your customers using demographic variables such as gender, age, income, education..etc.

Behavioural S&T

Segment your customers using behavioural variables such as frequency of usage, spending, time of purchase …etc.

Existing customers account for much of business growth and profitability. Recent research emphasizes that understanding, and predicting, the behaviours of existing customers is crucial to success in today’s highly-competitive markets. Costwise, acquiring new customers is more expensive than having current ones to repurchase. In addition, while some customers can be a source of profit, other customers can be a financial liability. CRM’s statistical methods help identify profitable customers, understand their behaviours, effectively communicate with them, and fulfill their needs and wants.

RFM Analysis

Recency, frequency and monetary value (RFM) of past purchases are found to be parameters of customer loyalty. Identify and build relationships with  customers who purchase most recently, most frequently, and spent the most with your business.

CLV Analysis

Customer lifetime value (CLV) analysis provides an estimate of the present monetary value a given customer is likely to generate over their stay with their lifetime. Find, and manage relationships with, customers who  are profitable in both the short and long run.

Ever wondered why there are jam and butter in the bread aisle, why BBQ sources are in the meat section, or why diapers are placed next to the beer fridge? Experienced store managers would have noticed customers’ behaviour of purchasing pairs of products. Often, these pairs are complementary products. In practice, however, the pairs of products are not easily recognized. Therefore, market basket analysis is performed. The analysis filters out products that are not worth pairing when their effects are small and/or insignificant. The analysis can be successfully applied to all sectors in which multiple products are traded such as banking and telecommunication. The main two benefits of performing a market basket analysis are retaining customers and increasing sales.

Market Basket Analysis

Retain your existing customers and boost sales through identifying and selling products that are commonly purchased together.