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Retail customer intelligence

Retail Customer Intelligence: How a Global Retail Firm Boosted Customer Retention with a Holistic User-Engagement Strategy

The global retail sector is going through a phase of unprecedented transformations. Rapidly changing customer needs and rising competition from department stores are increasing challenges for companies operating in the retail sector. To keep pace with the market requirements and succeed in the long-run, retail companies will need to adopt a customer-centric approach and realign marketing activities to meet changing customer needs. This is where Infiniti’s retail customer intelligence solution comes into play. By leveraging Infiniti’s retail customer intelligence services, businesses can focus on acquiring new customers and retaining valuable ones.

Business Challenge

The client is a global retail firm based out of Central Europe.

The company’s overall market growth slowed from an annual increase of 60% to 15%. Also, they were losing valuable customers to their competitors. The client, therefore, wanted to increase customer retention and drive sales. However, the company lacked a clear view of the reasons behind rising customer churn. Also, the company’s fragmented data management system made it difficult for the client to identify and track customers or obtain user feedback. As such, they approached the experts at Infiniti Research to leverage their expertise in offering customer intelligence solution. By collaborating with Infiniti Research, the client also wanted to reduce customer churn, identify reasons for customers switching to other brands, and evaluate their satisfaction level.

As customer buying behavior and spending patterns are rapidly owing to the COVID-19 outbreak, retail brands must focus on creating exceptional customer experience to gain a competitive edge in the long-run. Our retail customer intelligence solution can help you achieve these strategic objectives. Request a FREE proposal here.

Our Integrated Approach

As a part of the retail customer intelligence solution, the experts at Infiniti Research worked closely with the client to understand their challenges and business objectives.

The initial phase of the retail customer intelligence solution involved identifying target customers and segmenting them into various groups, such as groups with a higher tendency to churn, groups with high loyalty customers, and groups including high-influence users.

The second phase of the retail customer intelligence engagement involved analyzing customers’ buying behaviors, preferences, and interaction with the brand. This also involved analyzing customer journey across every touchpoint. This enabled the client to design initiatives that would improve user-experience along each step of the journey.

In the final phase of the retail customer intelligence solution, the experts provided recommendations to the client on strategies for acquiring new customers and retaining valuable ones by realizing factors that drive customers to competitors and understanding customers’ decision-making process.

Business Outcome

With Infiniti’s retail customer intelligence solution, the client was able to increase its customer retention rate by 56%. Also, the new user-engagement strategy helped them to overcome fragmented, non-standardized approach to engagement. In addition, the experts supported the client in developing a user-churn prediction model. This further helped the client to gain a unified view of the customer journey.

By leveraging Infiniti’s retail customer intelligence solution, the company was also able to:

  • Understand customers’ needs and implement programs to address customer pain points
  • Develop a dashboard that provided a clear view of user-churn data and customer satisfaction level
  • Visualize real-time changes in the market
  • Streamline marketing efforts and minimize costs

Our COVID-19 business continuity support solutions can help retail companies to tackle the business impact of COVID-19 outbreak and prepare for the post-COVID-19 era.

European retail industry

Customer intelligence Engagement: Building Capabilities to Meet Changing Needs of Customers During the Coronavirus crisis for a European Retail Industry Client

As the coronavirus pandemic continues to reverberate, the European retail industry is experiencing an unprecedented period of growth and prosperity. Small and medium-sized companies in the European retail sector are most at risk as the COVID-19 pandemic has accelerated the shift from face-to-face interactions towards omnichannel digital communications. While some retail brands have already taken approaches to combat the COVID-19 challenges, others are still struggling to maintain productivity and ensure business continuity. As such, European retail brands must take actions to navigate the COVID-19 crisis, plan for the recovery, and shape the future. In addition to this, retail brands must focus on creating exceptional customer experiences to set themselves apart from their competitors, expand home delivery options, reimagine the post-COVID-19 environment, and build agile capabilities for fluid times.

We can help you to survive the COVID-19 crisis and prepare for the post-COVID-19 environment. Learn more about our business continuity services to navigate the COVID-19 crisis.

Business Challenge

The client is a retail firm based out of Central Europe with over 55+ retail outlets.

The prolonged spread of coronavirus had a significant impact on the client’s supply chain operations. Also, the client’s inability to fully transition to a vertically integrated distribution model made it difficult for them to manage demand-supply requirements. Besides, as the customer buying behavior and spending patterns were changing, the client faced challenges in addressing immediate customer needs and preparing for the post-COVID-19 environment.

The European retail industry client noted that many retail brands have already stepped forward to facilitate their customers by accelerating digital options and adjusting merchandising plans. The client, therefore, wanted to understand their customers buying behavior and analyze spending patterns. They chose to collaborate with Infiniti Research to leverage their expertise in offering customer intelligence engagement.

Other key objectives of the European retail industry client were:

  • To enhance digital engagement for keeping sales up and enhancing business continuity
  • To review inventory and rethink merchandising plans for the next half of 2020
  • To enable home delivery options for capturing market share in this demand shift
  • To make physical operations touch-free
  • To simplify the product portfolio without compromising customer experience
  • To reimagine brick-and-mortar strategy for the post-COVID-19 era
  • To build capabilities to meet the changing needs and demands of customers

Maintaining a strong customer experience during such crisis requires an understanding of changing dynamics and pain points of customers. Our customer intelligence engagement can help you achieve this strategic objective. Get in touch with us.

Our Integrated Approach

The experts reviewed the company’s 2020 budget and inventory plans. Also, the experts assessed COVID-19’s impact on the business unit and analyzed the evolving changing customer behavior and spending patterns. As a part of the customer intelligence engagement, the experts helped the European retail industry client to devise a customer intelligence framework. This subsequently helped the client to understand their customers’ behaviors and analyze their purchasing patterns.

By analyzing the changing needs and demands of customers, the experts recommended the European retail industry client to accelerate digital options and set up new online portals to explain available services. Besides, the experts recommended the client to consider a partnership with reputable e-retailers.

The experts noted that spending patterns of customer have subsequently evolved owing to the COVID-19 crisis. As such, the experts recommended the European retail industry client to rethink merchandising strategy for the latter half of 2020 and plan for dealing with unprecedented levels of unsold inventory.

Business Outcome

By leveraging customer intelligence solution, the experts provided the European retail industry client with real-time contextual recommendations to deliver hyper-personalized experiences and create more effective customer relations. By closely analyzing China’s response to COVID-19 and changing customer buying behavior, the experts recommended the client to innovate their delivery models to help consumers navigate the pandemic safely. The rapid development of digital functionalities further helped the client to ensure continuity of services. Besides, the experts recommended the European retail industry client to experiment with bulk versions of their offering.

The experts also helped the European retail industry client in identifying third-party service providers to support them in enabling technology setup and infrastructure for accelerating digital options. Besides, to serve customers at this challenging time, the experts recommended the client to promote personal engagement and program chatbots.

By devising a sound marketing strategy, the experts further helped the European retail industry client to enhance their current digital offerings and encourage more customers to use digital channels for ordering products. The experts also analyzed the client’s infrastructure capacity and helped them in stabilizing critical infrastructure and addressing technology gaps to offer a seamless digital customer experience. In addition to this, the client was able to simplify product portfolio, reimagine brick-and-mortar strategy for the post-COVID-19 era, and build capabilities to meet changing needs and demands of customers.

By analyzing the initiatives undertaken by retail brands in China and the United States, the experts helped the European retail industry client to adapt to contactless-delivery options and make physical operations touch-free. Besides, the experts helped the client to keep pace with changing customer preferences in Europe and adopt agile innovation to address immediate customer needs.

Request more info to know how our custom solutions can help you to navigate the COVID-19 crisis.

customer buying behavior

How the Covid-19 Pandemic is Influencing Customer Buying Behavior

As the COVID-19 pandemic continues to spread, customer buying behavior and spending patterns are dramatically changing. Today, customers worldwide are trying to stave off uncertainties by stacking up food and utility supplies. The pandemic has caused a big boost to online grocery shopping, especially the household staples and health-related goods, such as bottled water, hand sanitizer, toilet paper, face masks, and much more. While the fashion and other luxury goods market continues to slide. However, customer buying behavior and spending trends for health-related goods and emergency pantry items differ. To help retailers stay proactive and plan their next moves, the experts at Infiniti Research have outlined the key customer trends observed globally.

An accelerated shift from st­ore to e-commerce in grocery

Our initial survey in March revealed that around 27% of customers had already changed their buying behavior. While the survey conducted this week shows that number nearly doubled to 58% as the government implemented precautionary measures such as store closure and social distancing to prevent the coronavirus spread. Consequently, e-commerce platforms are witnessing dramatic spikes in sales, which is driven by new customers trying online grocery shopping. As such, online brands are compelled to stack their online inventory to maximize profitability.

Yet another trend observed is that local retailers in the COVID-19 affected areas are witnessing an increase in product demand, compelling them to order inventory from their online counterparts. In a way, this is even helping e-commerce businesses to maintain profitability during this period.

Facing difficulties in stocking up supplies based on customer buying behavior? Our customer segmentation analysis can help you to identify different market segments and get a deeper understanding of buyer characteristics based on behavioral, psychographic and profile variables. RFP here.

Customers doing bulk shopping

The unpredictable nature of the coronavirus outbreak is compelling shoppers to stock-up and buy in bulk. Prior to the coronavirus outbreak, customers were accustomed to getting anything they needed within a day or two. However, the situation is not the same anymore. Major online stores are not accepting new grocery orders for now as they are facing exceptionally high demand for delivery slots. As a result, the trend of placing large orders seems to be on the rise. A recent report from Infiniti Research shows that in the four weeks ending March 22, a record amount on groceries was spent at supermarkets across the world, especially in the European region. Demand for groceries has soared to such a huge amount that e-commerce giants are unable to fulfill customer needs and requirements. 

 

Spike in shelf-stable products and depleting markets for fresh and exotic foods

The demand for fresh and exotic food items are declining and there is a rising demand for packaged or canned food products. This is because customers are not willing to take the risks of consuming items that may have travelled long distances and exchanged many hands with little or no way to prove their hygiene quotient. Instead, consumers are increasingly opting for packaged food items which are risk-free.

Owing to this changing customer buying behavior, retailers will need to conduct thorough market research and gather data-driven insights to efficiently make their next moves. Also, analyzing customer buying behavior, spending patterns, and usage is a way forward for businesses to gain a competitive advantage in the long run.

Understand customer buying behavior and meet their needs by uncovering factors influencing product or service loyalty, advocacy, and repeat purchases. Contact us to leverage our customer intelligence solution.

Quality and trust take top priority for consumers

As the COVID-19 pandemic continues to spread worldwide, customer buying behavior is moving away from a cost-saving nature. Today, customers are more concerned about the quality and safety of the products. This trend in customer buying behavior is compelling businesses to communicate their safety measures clearly to customers. This majorly applies for baby care and food companies where customers demand the highest safety. These strategic initiatives can help businesses to build the trust and enhance sales.

How Business Can Respond to Changing Customer Buying Behavior

#1 Emphasize on Quality and Efficacy

As customers demand products that are free of risks and of the highest quality, businesses must focus on communicating how their products are risk-free. For instance, food companies can specify safety measures undertaken by them while manufacturing and packing products to build the trust of customers.

#2 Be transparent about local origins

Today, shoppers demand complete transparency from farm to factory to distribution and details of procedures undertaken to assure product safety. In this context, promoting a product’s local origin can help businesses to drive sales. 

#3 Leverage technology

With digital connectivity taking a greater hold on everyday habits post the coronavirus outbreak, businesses that leverage the latest technologies and enable seamless interaction through direct-to-consumer offerings are expected to gain a competitive advantage. 

By keeping a continuous track on customer buying behavior, businesses can better plan a contingency plan and act smartly. Our customer intelligence solution can help you understand changing customer buying behavior and spending patterns. Request more info here.

market basket analysis

Market Basket Analysis Helped an Online Retailer Refocus Attention on Customers’ Needs and Enhance Quarterly Sales by 12% – Infiniti Research Success Story

Business Challenge 

Recent improvements in data analytics technology have opened up a world of possibility for online retailers to enhance their operational efficiency and delight their customers. The advancements have made it easy for decision-makers to determine product affinity and understand the reason behind products being purchased together. Also, as customer needs and preferences sway with the time, online retailers need to keep track of customer buying behavior to predict their purchasing patterns. This makes it vital for online retailers to leverage market basket analysis solution to develop new products without compromising on the market trends.

The client, an online retailer in the US was looking at adopting a technique that would help them track customer purchasing behavior and predict their purchasing patterns, given a contemplated purchase or previous purchase history. The client’s failure to utilize past data to identify relationships between products and customers was a major roadblock that prevented them from creating products and pricing models to generate revenue. Also, the lack of a cross-selling strategy for their products proved to be costly. Due to this, the client witnessed a depreciating profit margin for two consecutive years. Hence, they wanted to leverage market basket analysis to develop new cross-selling strategies.

Market basket analysis helps businesses better understand and serve their users by predicting their purchasing behaviors. Interested to learn more about our market basket solution. Request a FREE brochure.

Solutions Offered and Value Delivered 

The experts at Infiniti Research analyzed the client’s historical sales records, customers’ online browsing behavior, and common purchase patterns. Our experts also reached out to various stakeholders to gain a broader understanding of the retail market landscape.

Based on the data collected, our experts devised a market basket model, that combined detailed information on customers’ previous purchases, pairs of products purchased together, and discounting strategies followed by major players in the online retail sector. The market basket model helped the client to identify the common purchase patterns followed by customers and combinations of products or menu items that frequently co-occurred in transactions. In fact, with the data obtained from market basket analysis, the client was able to create new products or pricing models to generate revenue. Also, with Infiniti’s market basket analysis, the company witnessed a rise in their quarterly sales by 12%.

The insights gained from market basket solution further helped the client to:

  • Categorize products that customers bought together
  • Recommend to customers the associated products that other customers frequently purchased together
  • Create targeted marketing campaigns and entice customers towards complementary goods related to their recent purchase.
  • Enhance company’s cross-selling opportunity

Ever wondered how enterprises know what items to suggest to you before and after you make a purchase? Market basket analysis is the key. Request a FREE proposal to know how market basket analysis can drive better sales for your business.

What is the purpose of market basket analysis? 

Market basket analysis is one of the most commonly used retailing techniques to enhance sales. By leveraging market basket analysis, retailers can determine product affinity and understand the reason behind products being purchased together. Knowledge of the products frequently purchased as a group will empower retailers to efficiently plan their store layout. Retailers can also extract insights from market basket analysis and utilize it to develop new products without compromising on the market trends.

Market basket analysis also offers detailed insights into transactional datasets which turns out to be useful for product recommendations. This technique relies on the theory that if a customer purchases a certain product, they are more likely to buy another set of related items. By identifying product combinations that frequently co-occur in transactions, the retail industry players can uncover associations between customers and their purchase patterns.

Key Benefits of Market Basket Analysis 

  • Helps companies especially retailers, to analyze customer buying behavior and predict their next purchase.
  • Improves cross-selling and in turn, increase customer’s lifetime value.
  • Considered as a basis for creating a recommendation engine.
  • Based on the insights from market basket analysis, companies can predict future purchases of customers over a period.
  • Helps predict which item would probably fall short and maintain stocks in optimal quality.

If you need assistance in leveraging market basket analysis for your company, CONTACT US.

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