Customer Centric Assortment Tuning
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Assortment optimization customer centric assortment tuning strategies

Customer Centric Assortment Tuning

strategies

You just need to

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© 2016 Manthan


Assortment optimization customer centric assortment tuning strategies

Customer Centric Assortment Tuning strategies

Customer centricity has become a business imperative driven by the consumerization wave and e-tailing

which provides consumers with a plethora of options to choose from. Retailers that adopt product sourcing

and development strategies aligned with what the customer wants stand to have a better chance of

success.”Turning customer-centric” can be achieved by investing in easy to adopt, advanced technologies

that make execution a natural progression from mere static analytics.

Assortment tuning driven by Analytics

Such technologies facilitate information on customer purchase behavior across multiple channels, which then

act as a feed for the creation of Customer Centric assortments for every touch-point, thereby maximizing

salability. Assortment tuning has been done by merchandisers for decades, but customer centric tuning is the

need of the hour.

Keener understanding of the evolving market trends, local trends in buying patterns as well as the customer

segments by geography, demographic and psychographic tastes is critical.

This can be addressed by customer profiling and analytics that help a retailer understand customer behavior

and buying patterns; and then tuning the assortment based on geography, demographics and

psychographics.

Gartner observes that “Without advanced analytic capabilities, retailers will not be able to compete in the

digitalized marketplace”.

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© 2016 Manthan


Assortment optimization customer centric assortment tuning strategies

Customer Centric Assortment Tuning strategies

But how? – Customer centricity in action

For instance, a store carrying mid range and premium goods across different age bands must be able to tune

the assortment by store and season, taking into account the characteristics of consumers living near the

store. If people living near the Springfield store have middle class income and are comprised of millenial

buyers, then the assortment must include mid-range goods but also have some high end goods for aspiration

buying. Space allocated to the fashion preferred by younger buyers should be more than the fashion

preferred by baby boomers. This kind of assortment tuning needs to happen by location and channel to

create a desirable experience for the consumer.

Customer centric assortments are an outcome of using a collection of customer and sales data and related

analytics to come up with an assortment mix, tuned by geography as well as demographic and

psychographic attributes. Validity and success of the tuned assortment needs to be measured and analyzed

again to improve business continuously. Thus a transformation in the way assortment is planned and

managed in an information- centric culture is needed.

Learn how you seamless integrate analysis and insights into action and make the shift from Product

Centricity to Customer Centricity on this interactive customer centric merchandising page.

Manthan Retail Analytics and Customer Centric Assortments

Manthan Retail Analytics offers the much required link between discovery and execution with its combination

of comprehensive pre-built (out-of–the box) and self-service analytics that brings to surface actionable

merchandising insights.

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© 2016 Manthan


Assortment optimization customer centric assortment tuning strategies

Customer Centric Assortment Tuning strategies

With modern business intelligence capabilities that span descriptive, predictive and prescriptive analytics,

Manthan Retail Analytics helps retailers localize assortments, design promotions, optimize pricing strategies

and align product placements. All based on customer needs and preferences. This is achieved by combining

customer behavior, buying patterns, geo-spatial, census data with product, sales information to predict and

prescribe merchandising actions.

A 3Billion, Multi-format retailer partnered with Manthan in an effort to move toward customer-centric business

planning for its fashion business. Customer segmentation using Manthan’s clustering algorithm, helped the

retailer reclaim an average of 5% of lost sales and reduce out-of-stocks from 7% to a more customer-friendly

level.

This PDF is created from the blog post Customer Centric Assortment Tuning strategies. Visit Manthan

Retail Analytics Blog to learn more insights on Retail Analytics.

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© 2016 Manthan


Assortment optimization customer centric assortment tuning strategies

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