Consider this: Amazon uses automated machine-learned nudges to alert sellers about opportunities to add products that are trending and sharpen their prices to be more competitive. To be able to compete against the likes of Amazon, you need to implement product intelligence or apply data analytics to make smarter merchandising decisions, which includes knowing which products to add to your assortment that give you a competitive advantage.
This holiday season ensure that you do not lose out to the competition – here’s how you can leverage product intelligence to identify trending products to add to your assortment:
Compare your assortment against your competitors
Product intelligence involves the application of technology to aggregate and analyze data about the products you sell and what your competitors sell. Through competitive insights you can make timely decisions about including the trending products that are missing in your assortment. Here’s an example of how Ugam compared the assortment data of competitive sporting goods retailers to identify assortment opportunities in key sporting goods categories.
Analyze consumer demand signals
Being informed about what your customers want allows you to make better decisions about the products you need to sell. Product intelligence gathers consumer demand data, such as search, location and social media data, to help you predict which products will appeal to customers the most and add them to your assortment before your competitors do.
Sentiment analysis of product reviews
It’s important to learn how a product is perceived by customers to predict whether it will sell or not. Just because a product receives a large number or reviews or is searched frequently does not mean it will be a hit among your customers. Customers could be writing negative reviews or could be searching without the intention to buy. A sentiment analysis of product reviews can help you identify how customers perceive a product, and you can use those insights to determine what products you need to add to your assortment. For example, if the consumer sentiment for a particular Bluetooth headset shows that a large number of customers are unhappy with its battery life, there could be an opportunity to include Bluetooth headsets that are perceived to have a long battery life.
Non-traditional data, such as search signals, product reviews, location, social media signals, and competitor data, is becoming increasingly important for identifying trending products. Product intelligence involves synthesizing this data to help retailers make fact-based decisions and compete effectively.
For a detailed understanding of how to leverage product intelligence to improve your merchandising performance this holiday season, watch our exclusive webinar featuring Forrester analyst Sucharita Mulpuru and Ugam VP Sudhir Holla.
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.