You have definitely heard it before. The importance of collecting and measuring data. And you know you have to get started – for real this time. Because measuring and using data the right way is the key to succeed in retail. But how do you do it?
What is retail data?
Let’s start by going back to basics – data is all the facts and numbers you can get about your business. In this post, we will focus on effectively measuring and using all your customer-centric data – facts, behaviors, and interests of your customers.
How to collect and measure data
When it comes to collecting customer-centric data, the most important thing is to know what kind of data you need. Depending on your industry and what kind of products you offer, these metrics can vary.
Are you an online retailer within cosmetics – you’ll want to measure things like the customers favourite brand, product, and frequency of buying. And if you are in the furniture industry, the frequency of buying, for instance, will automatically be lower. Therefore, you will find it more valuable to measure things like yearly income to see their preferred price range, and what kind of products they have previously bought to make sure you don’t send them offers on products they have already bought.
Choose the right software
When you know what you want to measure, you’ll have to find the right tools to help you collect and analyze the data. You have to use a software that can give you all the data you need in one place. That is crucial if you want to get a 360 perspective on your customers. Because if you use different systems, it will be time-consuming and frustrating when you try to bring all the data together.
Use the data effectively
The purpose of the data you decide to collect comes down to one thing: staying one step ahead of your customers. And the only way to be able to predict the behaviors of your customers – is to analyze the customer-centric data. Both of these upcoming examples demonstrate how you can stay ahead by offering tailored communication based on data, with valuable information that most likely will trigger them into buying from you again.
- The cosmetics retailer can use the insights from the data to fully understand their customers. For example, they can send customers a reminder to buy their favourite mascara again – since the previous one is about to run out.
They can also use data to inform the customer about new product releases from their favourite brand – or recommend similar products to make them discover new brands.
- The furniture retailer can follow up on previous purchases to ensure customer satisfaction. They can give advice to the customer who bought a sofa two months ago for example. Tell them how to take care of the sofa to make it last many years – and add some inspirational pictures of new cushions that match the colour of the sofa.
To effectively measure and use all your data you need to know what kind of metrics you want to measure, then collect, analyze, and use it effectively. And then, you do it all again, and again! It’s an ongoing process to continuously analyze and use the data to enhance customer satisfaction. It will help you give the customers the best customer possible – and they will stay loyal to you!