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US Retail industry

Preparing for the Future of US Retail Industry: Key Areas that Need to be Addressed

Even though the age of ‘retail doom’ has been making headlines for the past couple of years, recent retail shopping trends and consumer spend patterns show that customer still favor brick-and-mortar stores over online channels. And this is expected to be one of the dominating US retail industry trends even in 2020. According to experts at Infiniti Research, the US retail industry is experiencing reinvention and transformation at an unprecedented speed. Due to this, the future of the US retail industry will be as challenging as it will be rewarding. In this article, our industry experts discuss some key questions that need to be answered by companies in the US retail industry right now in order to effectively prepare for the future.

Retailers with global aspirations are eyeing the US retail industry as their next target for expansion. Is your business equipped with strategies to face the rising competition? Request a free proposal to know how we can help your business with competent business strategies to combat rising market competition.

Are you meeting target customers online and offline?

Brand loyalty is something that companies in the US retail industry can no longer rely on even if they have a well-established brand name. In fact, our recent US retail industry analysis shows that over 50% of millennials and Gen Z consumers are attracted to smaller and more innovative brands rather than blindly making a purchase based on a strong brand name. Against this backdrop, it becomes even more important than ever before for brands in the US retail industry to engage with their consumers, especially on digital platforms. Digital channels are now one of the most important channels for retail growth and are believed to influence retail sales to a considerable extent. Experts at Infiniti Research also believe that digital channels will not only influence online sales but will also play a significant role in promoting offline sales. Providing omnichannel shopping opportunities is the way ahead for US retail industry companies, especially with e-commerce giants like Amazon venturing into the offline space, giving brick-and-mortar companies a tough competition.

Are you prepared to cope with the diversifying strategies of other retailers?

Several top retailers in the US retail industry have already begun expanding their business into other sectors such as healthcare. Moreover, non-retailers have also ventured into the retail business. For instance, a popular fitness company has now ventured into the healthy food business and fitness products retail. Most companies are now aiming to cross-industry boundaries and venture into territories that will help them expand their brand and at the same time capture greater consumer attention and market share with these cross-industry ecosystems.

To survive and thrive in the next decade, players in the US retail industry must refashion their businesses to capture opportunities arising from the changing retail industry trends. For more insights on how we can help your business achieve this get in touch with an industry expert from Infiniti Research.

Is your business positioned to win the talent war?

Traditional talent profiles will no longer be enough for players in the US retail industry to survive retail disruption. As retailers are increasingly focusing on becoming service and experience providers, talent that are highly skilled and have expertise in new industries will be paramount. For retail companies finding best-in-class talent may prove to be tough given the fact that other lucrative industries such as IT or finance tend to be more appealing for most in-demand talent profiles. Furthermore, the retail sector is generally perceived to be old fashioned and slow, making it even more difficult for US retail industry companies to hire from a competent and skilled talent pool.

Learn more about how we have helped clients in the US retail industry overcome their key business challenges

Competitive pricing analysis

Winning in the German Consumer Market: Top Retail Industry Trends to Track

retail industry trendsRetailing in Germany is going through major transformations as consumers are increasingly becoming accustomed to the new retail trends in the market. Although the German retailers are widely known in the international markets, especially in the US in the context if their entrance into the North American market, the domestic German retail sector is also as sophisticated and competitive as other international markets with their own unique set of challenges and opportunities. In this blog, experts at Infiniti provide comprehensive insights on the current German retail industry trends.

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Top retail industry trends in Germany

Discounters emphasizing on customer experience (CX)

In some key German retail outlets also known as ‘no-frill discount stores’, pallets of products go straight from the backroom to the sales floor. However, with the changing retail industry trends in Germany, these retailers are beginning to emphasize more on improving customer experience in retail. Furthermore, supermarkets in this region have been investing heavily into private brands in order to steal the market share from discounters. As a result, the boundaries between traditional supermarkets and discounters are becoming less clear in the German retail sector.

Increasing value of omnichannel retail

Increasing mobility and a greater number of informed customers are making digitization one of the popular retail industry trends in Germany. As a result, German retail companies have increasingly identified the need to possess the agility that comes with an effective omnichannel strategy. However, most of these retailers lack a sense of direction that is required to make their omnichannel strategy successful. The industry is now waiting to see if these retailers will develop clear strategies and begin investing more into their omnichannel strategies or refrain from selling online.

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Introduction of Amazon fresh

There is some indication Amazon Fresh may be scaling its operations in the United States, but it is a relatively new concept to German consumers and is now being piloted in a few large cities like Berlin and Hamburg. Amazon Fresh delivers groceries directly to consumer homes in temperature-controlled bags. This year online sales in Germany saw a rise compared to the previous year, but it remains to be seen how consumers will respond to specifically ordering groceries online.

The aging German shoppers

The German population is growing older and this is making a significant impact on the retail industry trends in the market, affecting how retailers sell. To cope up with the changing retail industry trends, German retailers are rethinking store layouts, making product packaging easier to read, and putting benches in stores, all in an effort to better serve older customers and enhance their customer experience.

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benefits of market segmentation

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

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