Apparel Retail Analytics Software

Gain Customer Insights with Apparel Retail Analytics Software

According to several recent reports, gaining customer insights through apparel retail analytics is a number one priority for many retailers. Empowered consumers now have multiple vehicles for which to shop – on their computer, smart phone, tablet or in the store – all depending on what they want, where they want it and what deals they’ve found. All these factors determine where and how they will shop, making it difficult for apparel retailers to understand and predict what’s resonating in their assortments, merchandising and promotions. That’s where customer data analytics comes in. Retailers now have the opportunity to take all of the data they’ve gathered about their customers to analyze and predict how their customers will behave, affecting how they market, price and merchandise. Being able to achieve these insights about customers is crucial for retailers in today’s competitive landscape. If they get it right, this approach can be a key differentiator and competitive advantage in the marketplace.

Why Apparel Retailers Need to Understand their Customers Better

Using data analytics to uncover actionable insights, retailers are better poised to understand their customers and meet and exceed customers’ expectations, while growing their top and bottom lines. This is a particularly important when it comes to apparel retailers.

Building brand loyalty is becoming more and more difficult with today’s savvy and fickle consumer. Consumers shop around and are not typically loyal to one specific brand. They purchase what they want at the best prices and the most convenient way. “Fast Fashion” has given consumers the ability to shop the latest trends just off of the runway, which makes accurate merchandise, assortment and pricing decisions key to garnering the loyalty of price and trend-conscious consumers.

The need for apparel retailers to understand their customers better also stems from the fact that apparel is fundamentally different than other retail segments such as grocery or hard goods. Typically, a grocery store's best customers will visit more than 52 times in a given year and deliver 5 percent margin.  An apparel retailer's loyal customers might only purchase 4-6 times in that same time period, but deliver a 50 percent margin.  Even if the customer visits an apparel store throughout the year, there is no guarantee they will actually make a purchase. Conversely, most people don’t visit the grocery store without purchasing. It's much more difficult to connect the dots in apparel, but because the margins are higher, it's far more important to get it right. Apparel retail analytics software can help solve these challenges for apparel retailers by using customer data to gain key actionable insights for a competitive edge.

Apparel Retail Data Analytics for Improved Planning

Apparel retailers now have the ability to gather a tremendous amount of information about their customers – from POS data to loyalty program data, web analytics and more. But most retailers struggle to turn that data into actionable insights. By leveraging a leading apparel retail analytics solution, retailers can uncover how their decisions in assortment and merchandise planning, as well as promotions planning affect how their customers will behave. For example, the merchandising organization can understand if and where there are holes in their assortments, and the pricing organization can understand how customers respond to price changes and why.

Using retail data analytics improves planning by applying scientific analysis to shopper behavior to gain insights into:

  • How to best segment and cluster customers to localize and personalize assortments
  • The type of customer that might be more important to an area of the business
  • Which customers to offer personalized promotions to in order to develop loyalty within the optimal customer group(s)
  • What pricing strategy best influences customers to purchase and what and when they purchase

This deep level of understanding allows retailers to avoid overstocks and markdowns, improve margins and target specific customers with campaigns that are more personal and relevant. Simplifying the decision-making capabilities of its users, apparel retail analytics can identify opportunities to cross-sell and up-sell that may not have been previously considered.

Learn More about Apparel Retail Analytics Software from JustEnough

According to EKN’s 3rd Annual Merchandising in Retail Benchmark Report, customer analysis and insights is the number one investment focus area for retailers this year. Boston Retail Partners recently released a report, The Top 10 Merchandise Planning Priorities for 2016. Based on a survey of retail executives, this report reinforced that advanced analytics is the top priority for retailers. It’s clear that retailers believe they can gain a competitive advantage with a robust customer analytics software solution.

JustEnough recently launched its Customer Insights solution in order to help retailers identify trends, opportunities and causal relationships within their vast amounts of customer data and enable them to act upon those insights quickly and easily.

With the help of JustEnough Customer Insights, you can:

  • Analyze customer behavior to understand which customers are most important to your business
  • Segment and cluster customers to localize and personalize assortments
  • Identify which promotions mobilize your best customers and which are cherry-picked
  • Manage different segmentations for each area of the business

With rich data visualization and purpose-built insights, you can obtain the best level of information needed to act upon without a dedicated data scientist. To find out more about how to gain actionable customer insights for your data, please contact us.

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