Most retailers understand that they can drive conversions if they know what their customers want. Unfortunately, in today’s hyper competitive environment, knowing everything about consumers is not enough. Retailers need to keep pace with changing market dynamics in order to stay in the game.
In our previous blog, we introduced product intelligence as the key to informing merchandising decisions through useful and actionable insights. In this section, we break it down to understand how Product Intelligence can be applied at different stages of the purchase cycle to draw shoppers in and drive conversions.
1. Assortment: Product intelligence aggregates and analyzes data to help retailers ascertain what consumers really want and how to tap that demand. This consumer-focused method of making assortment decisions responds directly to shopper needs, thereby increasing conversions. In some cases, we‘ve seen an increase of up to 7.5% in top-line through successful implementations of assortment intelligence.
2. Price and Promotions: Price plays an important role in influencing buying decisions. However, retailers realize that they don’t always need to resort to price-matching to compete. With the help of competitive data, product intelligence can provide recommendations on how to strategically price products to improve conversions. At Ugam, we’ve helped retailers increase margins by 3-7% through price recommendations.
3. Product Content: Effective content can provide better price-realization. By applying product intelligence, retailers can fix content gaps and influence purchasing decisions. This includes adding images and videos, enhancing product descriptions and specifications, using keywords that improve discoverability, and much more. Through product content intelligence, we’ve accomplished an increase of up to 60% in the top-twenty Google search rankings and an increase in conversion by 41 basis points, without increasing the price.
Sudhir Holla, Senior Vice President at Ugam, explains, “Product Intelligence allows the use of targeted interventions across assortment, price, and content to boost merchandising performance.” In other words, investing in improving specific aspects of the purchase cycle can lead to higher returns.
Consider the images below of the same Vitamix blender offered by two different retailers for the same price. Which blender do you think attracted more shoppers?
Watch our free webinar “How Product Intelligence Boosts Merchandising Performance” to find out.
Mihir Kittur is a Co-founder and Chief Innovation Officer at Ugam. He oversees sales, marketing and innovation and works with leading retailers and brands with insights and analytics solutions around their category decisions to improve business performance.