Business Challenges Uncovered by Retailers Using a Demand, Product and Supply Intelligence Solution
In follow-up to my post last week about the urgency for adopting a data and analytics tool, I wanted to provide specific examples to show why you’ll benefit from a solution that includes demand, product and supply intelligence.
Demand Intelligence – Finding the hot product that no one else has
It was a very smart and popular Internet retailer who realized the opportunity for LG Bluetooth headsets back in 2010 when, with the continuing growth in popularity of cell phones, came the drive by governments to encourage hands-free safe driving. Amazingly, it took three years for other retailers to jump on the opportunity to sell this hot product, which according to our analysis of customer e-demand signals and review/rating signals was a clear winner. If more retailers had a demand intelligence tool at their disposal, they could have jumped on this opportunity and provided healthy competition to this large Internet retailer. It’s a shame it was a missed opportunity.
Product Intelligence – What do customers want?
Taking the example of the LG Bluetooth Headset a bit further, we did an analysis of the specific features of the product that customers like best and found that certain attributes like “behind the head” and “stereo” were trending. We also found from an analysis of customer reviews that there were favorable sentiments for long battery life and a product that was activity-friendly. These are all very useful insights for product managers or online managers that can use these attributes and sentiments to improve or message products to drive more traffic for the product via search and conversions.
Supply Intelligence – Understanding Speed to Market
A large apparel client of ours “felt” that they were losing their high-value customers because they weren’t posting their products on their site as quickly as their competitors. So a customer would visit this retailer’s site, not find the clothing they were looking for and go to a competitive site to get it. Upon deep analysis, we confirmed that they were behind the competition as suspected – five weeks behind, in fact. This analysis allowed them to focus on adjusting their speed to market so that they could deliver the product at a faster pace and stay ahead of the competition.
In all these instances, it took a blend of industry insights, customer insights and competitive insights to determine an opportunity or a business challenge. This knowledge is imperative for surviving and growing your business in today’s world of empowered consumers, data transparency and competition.
To read the next blog post in this series, please click here.
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.