Predictive Analytics are being rapidly adopted by the retail industry as a more efficient and cost effective way to to make better product decisions.
Retail predictive analytics help you create and design better products, but they go far beyond general product recommendations. Here are just some of the additional insights that can be gained with the proper tools:
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This is the most obvious and expected outcome that most retailers hope to receive from their predictive tools. From entry price points to regional pricing strategies, you should expect to receive deep insight into how to price your products.
Learn which products will sell, and which products will be left on the shelf. Identify products that resonate with specific niches and products with mass appeal. Avoid controversial and offensive products and identify offerings that will create a buzz and maximize sales for your brand.
Improving sales and setting effective price points will lead to reducing markdowns. If you have to markdown your products, predictive tools canshould help you set the proper markdown cadence.
Know what the perfect entry price point is for your retail offerings. Understand how to maximize full-price sales to reduce markdowns and improve sell-through. Predictive analytics tools with multi-national support can also strategically recommend different entry points for different regions.
In-store testing, focus groups and other forms of costly “real-world” product testing can be greatly reduced. This shortens the product development cycle, reduces production costs and waste, and provides design teams with more creative flexibility.
Mature retail predictive tools can greatly improve overall product success rates. You can eliminate poor concepts earlier, find the right price points, and spend more time investing in products predicted to succeed.
Design teams can flourish when empowered by predictive analytics. They have more latitude to take creative risks and VoC data can provide useful insights on how to improve a product after the initial concept has been developed.
Many retail Predictive Analytics tools provide rapid results unparalleled by traditional in-store testing. For example, our InsightSuite provides results in as little as 24-48 hours. In some cases, this may increase speed to market by up to 5 months.
By leveraging First Insight's retail analytics, rue21 has greatly improved their product success rates.
Learn how're brand leveraged predictive analytics to increase sell-through and margins
Learn how're brand leveraged predictive analytics to increase sel-through and margins.
