It is so much easier to sell more to existing customers than to try to get new ones
An online merchant has to capitalize on low conversion rates and increase order size in order to ensure higher sales.
The process of upsell and cross-sell has the potential of dramatically increasing your conversion rate.
As SKU management is getting a lot of attention, there is need for robust solutions based on real customer buying behavior, to help companies maintain their SKUs on an continuous basis. The value is high sales, higher margins and improved customer service
By John Maller
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Posted in Uncategorized
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Also tagged affinity, Amazon, assortment planning, basket analysis, basket size, cross sell, merchandising, merchandizing, retail analytics, sku rationalization, upsell
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Understanding the product relationships in the market basket is key to driving up the order size or basket size. The results from this case study showed that adding one more item to 10% of the baskets can increase sales by 5%.
Wal-Mart Stores Inc., the world’s biggest retailer, is bringing back some products it had removed from shelves last year as shoppers turn to competitors for a wider selection of merchandise. A failed SKU rationalization effort?
The company met with suppliers about reinstating items to keep customers from going to other stores, said Leon Nicholas, a director [...]
An fast emerging area of business analytics is Pattern Based Analytics (PBA). This has been launched due to the very large amounts of data and need for analytics that can reveal meaningful patterns that businesses can act on. A typical reaction to the large amount of data is “If I had seen this coming sooner, I could have acted faster, decreased my risk and enhanced my opportunities for growth. Pattern Based Analytics typically requires focus on a business areas, e.g. Sales, Marketing, Finance, etc. The key to Pattern Based Analytics is automatically revealing intelligence that is hidden in the data/information.
By John Maller
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Posted in Uncategorized
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Also tagged business analytics, buying patterns, cross sell, customer buying pattern analytics, merchandising, multichannel ecommerce, pattern based analytics, retail, suggestive selling, unstructured data, upsell
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Companies today spend tons of money trying to get more customers. Very few companies have a finger on the pulse of the buying patterns and trends of their current customers. What is the point of getting more customers if you cannot serve the one that you already have? Is it just busy work? Or is it because with thousands of SKUs, they do not know how to keep up with customer buying patterns?
Analytics on corporate data will also become pervasive. Companies are demanding this. The analytics will be contextual, as this is required for analytics to automatically make sense out of data. The analytics will be agile and companies will be able to pour their data in, and watch the results take shape. Much like Google analytics on web traffic.
February 16, 2010 – 10:04 am
Emcien offers pattern-based analytics that easily takes sales data in any form to reveal customer buying patterns and trends. The technology has completely eliminated the need for data models, structures, mapping, etc. Emcien’s pattern based analytics technology was created explicitly to overcome the ‘old heavy weight model of technology’. Pour your sales data in, and watch the customer buying patterns. “Like Google analytics for sales data”, our customers told us.
