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For the last blog of this three-part series, we will go over the third and final lens that makes up true retail intelligence – the customer-centric lens.
If you haven’t already, feel free to go back and read Part 1: Why You Need to Be Market-Informed and Part 2: Why You Need to Be Profit-Aware.
As previously discussed, each lens serves a unique and critical purpose in retail; however, only when retailers utilize all three lenses in tandem do they achieve a complete, clear view of performance.
To succeed, a retailer’s view must be market-informed, profit-aware, and customer-centric.
Being customer-centric means knowing who makes you money by understanding product preferences, buying patterns, promotional and discount activity, and returns behavior by customer segment.
What works for one customer may look different for another. Accessing customer data to drive personalization throughout the customer journey is crucial.
Customer data can help you make more informed decisions when planning and adjusting your assortment. Taking a customer-centric approach to building an assortment means including data about their preferences, behavior, and demand. This approach enables you to make smarter decisions about which categories and styles to expand, adjust, or phase out.
With connected customer data, you can answer questions that help you create compelling assortments, like:
Incorporating a customer-centric lens into your pricing strategy allows you to set prices that align with each segment’s buying patterns and expectations. This approach enables you to target the right customers with the right prices, thus fostering loyalty while optimizing revenue. Connected customer data also reveals which segments respond best to discounts or promotions, giving you insight into when to use these tactics to drive sales while protecting profit margins.
To create the most customer-centric pricing strategy, use this lens to answer the following:
With a customer-centric view, you can ensure that you display products and run promotional campaigns that resonate with your target customer segment. Site merchandising is only successful if your messaging and product exposure align with customer demand. By understanding your customers’ needs and preferences, you can create a more personalized and engaging shopping experience that is, in turn, more profitable for your business.
For an effective site merchandising strategy, integrate customer data to answer:
Imagine a retailer is working on a new promotional strategy based on market trends and last season’s best-selling items.
They analyze competitor prices and benchmark against their profit targets, giving them a solid market-informed and profit-aware view. However, without customer data to provide a customer-centric view, they lack insight into whether their target audience values these specific product attributes at the proposed prices.
This could lead to missed opportunities or, worse, excessive stock that lingers on shelves if the prices don’t resonate with customers’ willingness to spend.
Luckily, EDITED’s Retail Intelligence Solution ensures that retailers are equipped with all three critical lenses – market-informed, profit-aware, and customer-centric – allowing them to make confident, data-driven decisions that align with customer expectations, competitive offerings, and internal business goals.
By looking at market, business, or customer data alone, retailers see only a fraction of the larger picture. For total clarity, these data sets must be combined.
EDITED is purpose-built for retail and is the only platform that brings together all of this data to give retailers a view that is market-informed, profit-aware, and customer-centric.
Don’t settle for a partial understanding of your performance; make more informed decisions with clear, comprehensive insights from EDITED’s True Retail Intelligence Solution.
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