What's Hiding in Your Data?
What's Hiding in Your Data?
What's Hiding in Your Data?
Jun 21, 2024
Jun 21, 2024
by
by
Andrew Kyprianides
Andrew Kyprianides
What's Hiding in Your Data?
The advance of e-commerce has dramatically shifted the way retail operates. While increased competition, sky-high return rates, and a perceived decline in customer experience are often cited as reasons why e-commerce has challenged traditional retail, it’s not all doom and gloom. One of the most significant advantages that e-commerce has brought to retailers is access to vast amounts of customer data—data that is much harder to compile and analyse in a brick-and-mortar environment. This treasure trove of information, often underutilised, holds the key to unlocking deeper insights into customer behaviour, preferences, and spending habits.
So, what exactly is hiding in the data of the average online retailer?
Order Data: The Power of Active Choice
Online shopping has made account creation or at least providing an email address almost a mandatory part of the purchasing process. Whether through full account registration or a simple guest checkout, every transaction leaves a digital footprint. This gives retailers an unparalleled view of each customer’s purchasing habits: what products they prefer, when they’re most likely to buy, and how much they typically spend.
By analysing this order data, retailers can segment their customer base into distinct profiles. For instance, some customers might consistently purchase high-end items, indicating a preference for premium products, while others may be more price-conscious, waiting for sales before making a purchase. Understanding these nuances allows retailers to tailor their marketing efforts, product recommendations, and promotional strategies to better align with each customer’s preferences, ultimately driving higher conversion rates and customer satisfaction.
Pricing Data: Crafting the Spending Profile
One of the most valuable insights hiding in a retailer’s data is the customer’s price sensitivity. By tracking the price of products over time and correlating it with purchasing patterns, retailers can build detailed spending profiles for their customers.
Is a particular customer willing to pay full price for a new product as soon as it hits the market, or do they typically wait for discounts? Are they willing to buy secondary or tertiary options when their first choice is unavailable, provided the price is right? Understanding these behaviours can help retailers optimise their pricing strategies. For instance, customers who are less price-sensitive can be targeted with early access to new collections, while those who tend to wait for sales can be incentivised with personalised discount offers that appeal to their spending habits.
Unstated Preferences: Reading Between the Lines
In the physical retail world, tracking a customer’s preferences without a purchase is nearly impossible. However, e-commerce platforms provide a wealth of data on customer interests even before they make a purchase. Features like wishlists, abandoned baskets, and notifications for out-of-stock items offer critical insights into what a customer desires.
This data can be a goldmine for re-engagement strategies. For example, if a customer frequently adds a specific item to their wishlist but hasn’t made a purchase, the retailer could send a targeted email when the item goes on sale or offer a small discount to nudge them towards a purchase. Similarly, abandoned baskets can trigger follow-up emails reminding the customer of the items they left behind, possibly paired with an incentive to complete the purchase. By understanding what customers are interested in—beyond just what they buy—retailers can create more personalised shopping experiences that drive repeat business.
Timing Data: Capturing the Perfect Moment
The timing of purchases is another critical element that e-commerce data can reveal. Many consumers make purchases shortly after payday, but the specifics of this timing can vary widely. Some customers might be more inclined to shop after fulfilling their financial obligations, like paying off a mortgage or car loan, while others might treat themselves immediately after receiving their salary. Additionally, factors like savings, credit card availability, and spending habits influence how and when people shop.
E-commerce platforms offer the advantage of tracking these timing patterns without the noise found in physical retail, such as opening hours or the customers’ proximity to the store. By analysing when customers are most likely to make a purchase, retailers can optimise the timing of their marketing campaigns and promotions. For example, if data shows that a particular customer often shops late at night or on payday weekends, targeted emails or ads could be scheduled to hit their inbox at the most opportune moment, increasing the likelihood of a sale. Further to conversion, customer-tailored timing can help a store normalise their cash flow and limit the impact on their warehouse and shipping operations.
Conclusion: Unleashing the Power of Data
The data hiding in your e-commerce platform isn’t just a collection of numbers; it’s a detailed map of your customers' preferences, behaviours, and habits. By tapping into this data, retailers can gain a deeper understanding of their customers and tailor their strategies accordingly. Whether it’s through analysing order history, pricing sensitivity, unstated preferences, or timing data, the insights gained can be used to create more personalised and effective marketing strategies, ultimately leading to increased sales and customer loyalty.
In a world where data is the new currency, the ability to harness and act on the information hiding in your e-commerce platform could be the key to staying ahead of the competition.
What's Hiding in Your Data?
The advance of e-commerce has dramatically shifted the way retail operates. While increased competition, sky-high return rates, and a perceived decline in customer experience are often cited as reasons why e-commerce has challenged traditional retail, it’s not all doom and gloom. One of the most significant advantages that e-commerce has brought to retailers is access to vast amounts of customer data—data that is much harder to compile and analyse in a brick-and-mortar environment. This treasure trove of information, often underutilised, holds the key to unlocking deeper insights into customer behaviour, preferences, and spending habits.
So, what exactly is hiding in the data of the average online retailer?
Order Data: The Power of Active Choice
Online shopping has made account creation or at least providing an email address almost a mandatory part of the purchasing process. Whether through full account registration or a simple guest checkout, every transaction leaves a digital footprint. This gives retailers an unparalleled view of each customer’s purchasing habits: what products they prefer, when they’re most likely to buy, and how much they typically spend.
By analysing this order data, retailers can segment their customer base into distinct profiles. For instance, some customers might consistently purchase high-end items, indicating a preference for premium products, while others may be more price-conscious, waiting for sales before making a purchase. Understanding these nuances allows retailers to tailor their marketing efforts, product recommendations, and promotional strategies to better align with each customer’s preferences, ultimately driving higher conversion rates and customer satisfaction.
Pricing Data: Crafting the Spending Profile
One of the most valuable insights hiding in a retailer’s data is the customer’s price sensitivity. By tracking the price of products over time and correlating it with purchasing patterns, retailers can build detailed spending profiles for their customers.
Is a particular customer willing to pay full price for a new product as soon as it hits the market, or do they typically wait for discounts? Are they willing to buy secondary or tertiary options when their first choice is unavailable, provided the price is right? Understanding these behaviours can help retailers optimise their pricing strategies. For instance, customers who are less price-sensitive can be targeted with early access to new collections, while those who tend to wait for sales can be incentivised with personalised discount offers that appeal to their spending habits.
Unstated Preferences: Reading Between the Lines
In the physical retail world, tracking a customer’s preferences without a purchase is nearly impossible. However, e-commerce platforms provide a wealth of data on customer interests even before they make a purchase. Features like wishlists, abandoned baskets, and notifications for out-of-stock items offer critical insights into what a customer desires.
This data can be a goldmine for re-engagement strategies. For example, if a customer frequently adds a specific item to their wishlist but hasn’t made a purchase, the retailer could send a targeted email when the item goes on sale or offer a small discount to nudge them towards a purchase. Similarly, abandoned baskets can trigger follow-up emails reminding the customer of the items they left behind, possibly paired with an incentive to complete the purchase. By understanding what customers are interested in—beyond just what they buy—retailers can create more personalised shopping experiences that drive repeat business.
Timing Data: Capturing the Perfect Moment
The timing of purchases is another critical element that e-commerce data can reveal. Many consumers make purchases shortly after payday, but the specifics of this timing can vary widely. Some customers might be more inclined to shop after fulfilling their financial obligations, like paying off a mortgage or car loan, while others might treat themselves immediately after receiving their salary. Additionally, factors like savings, credit card availability, and spending habits influence how and when people shop.
E-commerce platforms offer the advantage of tracking these timing patterns without the noise found in physical retail, such as opening hours or the customers’ proximity to the store. By analysing when customers are most likely to make a purchase, retailers can optimise the timing of their marketing campaigns and promotions. For example, if data shows that a particular customer often shops late at night or on payday weekends, targeted emails or ads could be scheduled to hit their inbox at the most opportune moment, increasing the likelihood of a sale. Further to conversion, customer-tailored timing can help a store normalise their cash flow and limit the impact on their warehouse and shipping operations.
Conclusion: Unleashing the Power of Data
The data hiding in your e-commerce platform isn’t just a collection of numbers; it’s a detailed map of your customers' preferences, behaviours, and habits. By tapping into this data, retailers can gain a deeper understanding of their customers and tailor their strategies accordingly. Whether it’s through analysing order history, pricing sensitivity, unstated preferences, or timing data, the insights gained can be used to create more personalised and effective marketing strategies, ultimately leading to increased sales and customer loyalty.
In a world where data is the new currency, the ability to harness and act on the information hiding in your e-commerce platform could be the key to staying ahead of the competition.
Want to know how to adopt this for your store?
Want to know how to adopt this for your store?
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