Tag: retail customer engagement

Retail industry

Overcoming Challenges in Retail with Infiniti’s Solutions – A Storyboard Series of Success Stories

Lower unemployment and tax cuts have fueled the growth of the retail industry over the past year. According to the retail industry experts at Infiniti Research, 2019 will be a precarious year for players in the retail sector. As the stock market is in flux, the future of retail is expected to be dominated by steepening tariffs. Furthermore, another intriguing retail market trend is emerging markets are taking on a greater share of global growth. However, these challenges could also present several opportunities for savvy retailers who are willing to face the winds heads on.

Infiniti’s solutions to overcome challenges in the retail have helped several established brands to enhance their overall performance and drive greater business growth. This newsletter offers a snapshot of some of our success stories and how our experts helped clients overcome some major risks facing the retail industry.

Attracting new customer groups for a fast-fashion retailer using market opportunity analysis

Recently, several fast-fashion retailers have had to wind up their operations due to their inability to cope up with the dynamic market trends and ever-changing consumer demands. This has acted as a wake-up call for other players in this segment to reinvent their strategies to survive. This success story is a great example of how brands that have the courage to self-disrupt will emerge as winners. Our client, a fast-fashion retailer based out of Central America wanted to attract new customer segments and wanted to identify the right marketing channels to invest in. With our market opportunity analysis, they were able to effectively target the right customer groups and thereby increased their targeted segment spend by 19%. They were also able to reverse their declining sales in less than 60 days.

Using customer buying journey maps to identify untapped opportunities

Personalization of customer experience is becoming vital for companies in the retail industry to retain their customers. To do so, retailers will need to map their customers’ journey from awareness to the purchase stage. This is where the importance of customer buying journey maps come into play for companies in the retail industry. A German retailer wanted to devise personalized product offerings, develop better marketing strategies, and drive sales. Experts at Infiniti provided the client with a customer buying journey analysis solution and devised strategies to help them personalize their marketing and sales strategies to drive maximum sales. By identifying the right marketing channels to target customers the client was able to drive customer engagement and enhance ROI by 23%.

Competitive pricing analysis to boost sales and enhance profit margins by 19%

Companies in the retail industry resort to different pricing strategies based on their unique business goals and other key factors affecting their business. However, increase in the number of competitors in the market is increasing challenges in retail especially when it comes to setting prices for products. The client is a renowned company in the Canadian retail industry. The company was facing predicaments in pricing their products in line with the current market demand and adjust to the competitors’ pricing structures. Our competitive pricing analysis solution focused on identifying how similar products of the same category are priced in the Canadian market. This helped the client to identify the optimum price at which they can set their products to attract more customer while making steady profits. As a result, the client was able to overcome challenges in retail pricing and increase their profit margins by 19% in one year.

Reducing customer churn by 37% for a European retailer with customer needs assessment solution

The European retail industry is growing exponentially and presents huge opportunities for retail companies around the globe. Despite this steady growth, rising need for convenience and rapidly changing market realities are making it vital for retailers to understand customer needs and analyze their buying patterns. Our client is a well-known brand in the European retail industry. They noticed a steady decline in sales and consequently increasing customer churn in their business. They wanted to identify the prime reasons for them and overcome the key retail industry challenges coming their way. Infiniti’s customer needs assessment solution helped the client identify their customers’ unmet needs and demands. They also gained detailed insights on the product features that drive product purchase. With this, the company in the European retail industry was able to reduce customer churn rate by 37%.

retail industry

The Reasons Behind Soaring Private Label Success in the European Retail Industry

In the European retail industry, there is currently an unprecedented prominence of private labels. According to our industry experts, the sales and market share of private label brands have climbed to an all-time high in countries including Belgium, Netherlands, Austria, Denmark, Poland, Sweden, and Norway. Our experts believe that some of the key drivers behind the success of private labels are the expansion of retailing around the world, the emergence of e-commerce, the success of discounters, and changing millennial shopping habits. Furthermore, Private labels allow companies in the retail industry to offer something distinct to their customers. With intensifying competition in the retail industry, private labels have grown to include exclusive products aimed at increasing brand loyalty.

Brands in the retail industry should always be on the lookout for opportunities to better serve their customers. Request a free proposal to know how we can help you capitalize on the right market opportunities.

retail industryThe rise of millennials

Millennials are expected to outnumber baby boomers over the next decade as the generation with the highest discretionary spending power. Millennials are known to be experimental in trying out new products and consequently, private labels are becoming increasingly popular among this group. They demand products that do more, provide greater convenience and offer a variety of lifestyle options and are known to undertake extensive research before buying products. Loyalty to established brands in FMCG cannot be expected from millennials. As a result, almost all major retailers in Europe have developed sophisticated private label programs that give tough competition to established FMCG brands.

Attractive and meaningful packaging

Modern retailers have realized the importance of attractive and meaningful packaging and generally, they have been succeeding in using packaging to get the right message across to shoppers. In the case of private label, it is mostly up to the retailer to set the specification, and there has been some heavy investment in packaging solutions. Apart from increasing the market share, private labels have also undergone stratification with the rise of premium and mid-range offerings besides the traditional bargain ones. Stratification has been in practice over several decades. Today, however, we can see stratification based on factors including organic, natural, gluten-free, and value-based.

Private label is a secret weapon for retailers today. To use it right and maximize its potential, experts at Infiniti can help you as it has done with many companies in the retail industry. Get in touch with us for more insights.

Health-conscious customers

The UK is a market where players in the retail industry use private-labels to reinforce an already-strong store equity position. The major supermarkets’ strategy has been to grow private-label sales. This can particularly be seen in fresh foods, while reducing the range of packaged goods. Retailers are gradually expanding their private-label brands to include healthier options, including for consumers with special dietary needs, and recommends looking for opportunities to remove, reduce or replace undesirable ingredients in their prepared foods. The benefits are also being prominently highlighted on packages and with in-store signage.

Ecommerce boom

Private labels are being disrupted on many various levels due to the rise of ecommerce. Several top ecommerce companies are fragmenting the path to purchase and opening new opportunities for private labels. E-commerce platforms are opening up many doors to expand the sales of private labels.

Learn more about Infiniti’s solutions for companies in the retail industry

retail market segmentation

4 Common Retail Market Segmentation Mistakes that You Might be Making

Even the most successful retail companies agree that the ‘one size fits all’ approach is no longer a viable option to survive in today’s exceedingly competitive marketplace. As such, they are using techniques such as retail market segmentation to stay ahead of the game. However, often the lack of preparation or faults in implementation of a retail market segmentation strategy is where companies fail, and this is just the beginning for any retailer looking to segment their audience and better target the most valuable consumers. With over 15 years of experience in engaging retailers in successful retail market segmentation analysis and implementations, experts at Infiniti Research have identified four retail market segmentation mistakes that companies often make and also suggests how to avoid them.

Improve your marketing effectiveness with the right retail market segmentation strategy. Request a free proposal from our experts.

Why do retail market segmentation strategies fail?

 

Retail market segmentation

Defining segments too broadly

Segmenting the customer segments too broadly is one of the most common retail market segmentation mistakes that most companies make. This will consequently make them fall short to a competitor who targets more narrowly. Retailers can successfully create narrow segments by analyzing their customer accounts, website visits, and transaction history. By doing so, companies can better target customers. For instance, a customer who may be frequently purchasing a particular product and may be interested in a new and improved version of the product that the company is planning to launch. Although this might be challenging to achieve at the moment, but it would be more feasible when over time more and more data is gathered.

Not aligning business by market segments

Successful retailers tend to create market focused teams or segments which later gets organized into a market-focused business model. This allows the customer communications and transactions to be more targeted, consequently, making the business more streamlined. Businesses who refrain from doing so are more likely to find their retail market segmentation strategy fail.

By segmenting your customers into different, narrow subcategories, you’ll create more targeted experiences for them that result in better marketing and a better ROI from your marketing efforts. Get in touch with our experts to know how we help our clients achieve this.

Managing segments locally

Some businesses that operate in a smaller market currently tend to set up their retail market segmentation strategy to only apply to their local or regional organization. Although this may work well at present, in the long run when the business grows there are chances that the retailer will get blind sided by a more dynamic global economy.

Unclear retail market segmentation results

An effective retail market segmentation analysis should provide the company with strategic direction to move forward. Furthermore, it should also provide a clear idea of which markets are the most viable to target. If a retail market segmentation research does not meet these requirements, then it is an indicator of a failed approach. So, before beginning, get your research team together and clearly define their goals and the information you’re aiming to get.

Learn more about Infiniti’s solutions for retail businesses.

Customer segmentation analysis

Infiniti’s Retail Customer Segmentation Strategy Elevates Sales by 17% for a German Retailer

Retail customer segmentation

Today, with a multitude of choices available for customers, personalization of shopping experience has become vital for retailers to increase sales and customer retention. Also, retail companies are under the pressure to efficiently segment their customers base and devise targeted marketing campaigns to attract lucrative customer groups. This is where companies realize the real power of leveraging retail customer segmentation analysis. Consequently, retail companies are partnering with firms like Infiniti Research to leverage their expertise in offering retail customer segmentation analysis.

Are you looking to tailor your marketing strategies for your high-value customers? If yes, our customer segmentation analysis can help. Request a FREE proposal today!

Business Challenge

The client is a retail company based out of Germany. The client’s unstructured approach to product marketing turned out to be costly for the company. Also, the company started losing their valuable customers to their competitors. This impacted the company’s sales rate and subsequently affected the overall sales rate. The client, therefore, realized the need to improve personalization with advanced retail customer segmentation strategy. To do so, the client approached the experts at Infiniti Research.

Furthermore, by leveraging Infiniti’s expertise in offering retail customer segmentation analysis solution, the client also wanted to tackle challenges such as:

Segmenting based on touchpoint engagement

With Infiniti’s retail customer segmentation strategy, the client wanted to categorize customers based on how they interact with the business post-purchase. By doing so, they wanted to devise marketing campaigns based on their customers’ behaviors and demands.

Segmenting based on purchasing patterns

With Infiniti’s retail customer segmentation analysis, the client wanted to analyze their past sales data to identify most frequent customers, identify highest value customers, and understand their needs and demands. By doing so, they wanted to devise value maximization strategies to enhance their market share and customer retention.

Rising need for customization in marketing

Today, with customers having more choices than ever before, major retailers have already started segmenting customers based their shopping patterns and spending behavior. Therefore, by leveraging Infiniti’s retail customer segmentation analysis, the client wanted to efficiently segment their customers to customize offerings based on their needs and demands.

Reach out to our experts to learn more about how our retail customer segmentation strategy can help you efficiently segment your customer base and devise targeted marketing initiatives.

Solutions Offered

To help the client tackle the above-mentioned challenges, the experts at Infiniti Research conducted retail customer segmentation and need analysis. By combining the best data gathering approaches, our experts helped the client to segment their target customers into various groups based on factors such as shopping patterns, spending behavior, and their demands.

Also, as a part of the retail customer engagement, the experts conducted sales assessment for the past five years. The experts also analyzed the sales data of the client’s key competitors. The analysis of the past sales data helped the client to identify their frequent customers and also products with the highest demand.

Furthermore, by leveraging Infiniti’s expertise in offering customer satisfaction and loyalty assessment, our experts helped the client to understand the satisfaction level of customers. Also, by conducting trial marketing campaigns, the experts helped the client to identify the right channel to promote their product offerings.

Results Obtained

This helped the client to efficiently devise targeted marketing and promotional campaigns for specific segments. This subsequently helped the company to effectively engage customers and enhance customer retention. Also, the client was able to efficiently utilize their marketing budget and elevate sales by 17% within a year.

Retail customer segmentation

Request for more information to know how our retail customer segmentation analysis can help you gather detailed insights into your target market and measure the effectiveness of your marketing campaign.