There are different ways to upgrade and use customer analytics in the retail business. We will discuss the five most popular methods.
Let’s start with the definition. Сustomer analytics is the process of collecting and analyzing customer data through a variety of systems, including IT infrastructures, machine learning, artificial intelligence, and others.
Here are some examples of the information collected by customer analytics: it can be the type of device you’re using to browse the online store, some demographic data or the approximate customer location.
With the collected customer data, you will have a better understanding of what channels customers use to get to you. This way, you can improve the customer’s experience with your channel based on data collected through their past interactions. Using this analytical platform, you will get not only detailed metrics but also general optimization of both strategies and SKUs.
Let’s move on to methods of using customer analytics in the retail business.
1. Segmentation and tracking
The process of segmenting customers based on the collected data allows you to clearly see the number of purchases made by people from different countries, with different interests and values. Using this data, you will be able to adjust both individual products and overall selling campaigns to match each of the groups better than before. By dividing your audience, you can “target” one or more segments using various tools: from special ads to entire ad campaigns.
You can also use customer analytics to track the customer journey, as well as to work with ROI measuring, predicting lifetime values, and other metrics.
2. Customer behavior prediction
AI and machine learning can be used both in digital sales and in the actual stores. For example, if there is information that some products are bought more often than others, you can physically place them next to each other to increase conversion rates. So, you can easily “predict” customer behavior by analyzing the obtained data.
Localization is one of the ways to get a reputation as a multinational retailer. Most international companies are encouraged to localize their services as “widely” as possible. Why? It is difficult to maintain the required level of Customer Experience for different countries. Each country has its own culture and mentality, but such a personalized approach can help you increase your market share.
4. Product attributes
Using product attributes is the easiest way to focus on product advantages. They make it easier for you to inform your customers about the exact nature of the product they’re buying, with tags like “high-quality leather” or “durable fabric”. It also helps customers find the product they need faster. Moreover, the use of attributes reduces the number of product returns.
5. Ad retargeting
Ad retargeting uses analytics data to improve personalization and customer experience individually for each customer. This aim is achieved by showing the targeted ads to customers who’s been on your site at least once.
In conclusion, we need to note that improving CX is one of the most important ROI for most companies. That’s why Brandquad created its own solution for high-quality ecomme analytics — to help businesses get to know their customers better and improve their experience