You’re sitting on a pot of gold
How big data can affect your online turnover
Every fashion brand is looking for new methods and ways to better promote and sell their collections and improve their sales performance nowadays, often not realizing the answer is right at their fingertips. The beauty of ecommerce lies in every click, every sign of interest that is being tracked and measured. Not for nothing data is called the new gold. Why risk to miss the boat? Here are 5 ways how big data can positively impact your online fashion business.
Analyse shopping behaviour
In a market that’s more fragmented than ever before, each brand wants to attract customer’s attention by offering the most value for each customer segment. That true value lies in really knowing who your customers are and understanding what each of your target groups wants and needs. Developing such buyer personas and shopper profiles is much easier when you have relevant data to start from. Numbers, records, information about their browsing history, shopping behaviour and preferences provide a wonderful insight in which products your customers like best, when and how they like shopping at your online store and what triggers them to buy. Being aware of that definitely opens doors for your business to improve the customer journey.
Improve customer service
Seth Godin once said: “People do not buy goods and services, they buy relations, stories and magic.” Well, we couldn’t agree more. How you interact with your audience, how accessible your team is and how easy you make it for customers to find what they are looking for: those are the things that consumers will remember. Taking into consideration that it costs five times less to retain customers than acquire new ones and loyal customers spend up to 67% more than new customers, it pays off to continue improving your customer service. Useful consumer data paves the way to more customer service success because it shows you what you need to improve.
“People do not buy goods and services, they buy relations, stories and magic.” - Seth Godin
One example of how small changes can have a big impact on your customer service, and in the end also on your turnover, is how online fashion retailer ASOS created a virtual fit assistant. It recommends you, based on consumer data, what the right size for that particular dress, jeans or pair of sneakers would be for your body. Not only does this answers a lot of customers’ questions before they have to contact your customers service department, it also helps you reduce returns.
Personalize customer experience
Personalization isn’t a nice-to-have anymore, it’s a must-have. Research shows that 87% of consumers said that when an online store personalized shopping experience, they are driven to buy more.
Big data, in the form of past shopping behaviour and browsing interests, tells you exactly what a customer likes or dislikes. For that reason, it enables you to recommend items or offers you know he or she will love, either on your website or via email or targeted ads. Taking it one step further, you could even increase or decrease your prices depending on your customer’s behaviour and tolerance, consumer demand and competitors’ pricing.
Provide more secure online payment processing
Safety first, and definitely when you are dealing with sensitive personal information like bank account details. That’s why it’s so important to keep in mind that having a lot of those details in one place can be a draw for hackers. Big data helps you pick the payment methods that are working best and are the safest for your consumers.
Better targeted advertising
Nearly everyone uses social media nowadays. Fashion brands see this as a huge opportunity to reach a lot of potential customers in one spot. Unfortunately, not spending your money wisely can result in targeting people that don’t feel related to your brand. In that sense, targeting can make or break your campaign.
Consumer data on who your customer is, by combining demographics and interests, creates your ideal solid foundation for a successful marketing campaign. Offering the right message at the right time to the right target audience is the next step.
We are definitely at the tipping point where big data is taking off to improve operations and ROI in the fashion industry. Big data is changing how (online) retailers operate, create (personalized) shopping experiences and optimize customer service. So, what are you waiting for? Come in, let’s talk about how we can turn things around for you!