With the rise of online shopping, many retailers face fierce competition and changing consumer tastes. People can now buy a vast amount of products from different stores with the simple click of a button. So it’s more important than ever to leverage retail analytics to keep a competitive edge.
Retail analytics is collecting and analyzing data from sales, inventory, and customers to improve business processes and marketing. By identifying trends and patterns, retail analytics helps businesses leverage data to make better decisions.
Retail analytics takes the guesswork out of many business operations and puts them on autopilot. It helps predict product demand and trends, what customers want, and when they want it. All this allows stores to optimize their inventory levels and product prices.
Retail analytics also helps you manage in-store operations like staffing levels. Using live and historic retail data lets you know how many employees to put out on the floor.
Most importantly, retail analytics helps you understand your customers. After all, customer experience matters, and you can know their wants and needs by following the data. Then make the buyer’s journey as seamless as possible and raise customer lifetime value (LTV).
Different retail operations call for different types of analytics. Here are the different kinds to know and what metrics they track:
Web analytics is driven by ecommerce, which exploded during COVID-19. As businesses were forced to close, they put more products online. As shoppers were confined to their homes, they shopped more online. But even before the pandemic, ecommerce was taking over the retail industry, and it's predicted to just keep growing.
Ecommerce share of total global retail sales from 2015 to 2024:
When it comes to analytics, ecommerce opens up a world of opportunity over brick-and-mortar retail. To begin, the amount of data and types of data available is much larger. Imagine knowing the exact time every customer walked in, which aisles they walked down, which products they touched, what items they put back, what they bought for what price, how long they stayed in your store, and even where they lived. That’s what is possible with ecommerce analytics. You just can't get the same amount of data from a physical store environment.
Of course, some brick-and-mortar strategies can be adapted for ecommerce. For example, you can implement a recommendation engine to imitate a friendly storekeeper. It can recommend impersonalized items like new, trending, or discounted products. Or it can make personalized recommendations based on consumer purchasing and browsing history.
Sometimes ecommerce analytics will change retail strategy. For example, product titles may need to be adjusted. Why? Ecommerce product titles need to match what online shoppers are searching for. Otherwise, they may never find your product, and you’ll lose valuable web traffic, which boosts ecommerce revenue in the long run.
Overall, retail analytics is essential for any ecommerce or hybrid business to thrive.
Implementing retail analytics can also be challenging. For instance, you need to make sure to respect customer privacy concerns and comply with government regulations like the General Data Protection Regulation (GPDR) and the California Consumer Privacy Act (CCPA). These can make consumer data collection tricky.
As a rule, collect data securely and transparently. Most online shoppers don’t mind giving away their data. They just expect you to be upfront and responsible with it.
One way to collect consumer data is to collaborate with customers through games, quizzes, and surveys. Incentivize them to volunteer data by offering a reward in exchange. This way, you stay transparent and get their consent.
Once you are data security compliant, collect as much data as possible. Measure and track it consistently over the long term. Any retail analytics software should store historical data to help you do this.
Then, focus on data and metrics that matter most to your business. Massive amounts of information can be overwhelming, so narrow it down to what’s relevant to your objectives, business type, and current campaigns.
Next, leverage the data by identifying product gaps, segmenting customers for email marketing, or relating different metrics to each other for greater insights. Combine online and offline data. Any retail analytics software should integrate with other tools, so you can get the most out of all your data.
Finally, don’t rely exclusively on retail analytics. Use your human intuition to fill in the gaps that technology can’t. In the end, retail analytics is just a tool to help you run your business optimally.
The retail analytics market is expected to expand at a rate of 18% and reach a value of $9.5 billion by 2025. Much of this growth can be attributed to retailers adopting cloud-based software, RFID tags, in-store WiFi, and Internet of Things (IoT) technology. Each offers new ways to track data, making retail analytics more valuable in the process.
One retail analytics trend not to miss is omnichannel analytics. Omnichannel analytics shares data across several stores, allowing you to know how analytics in one store or channel affects another. For example, your conversion rates at Walmart could impact how you approach SEO on Amazon. With omnichannel analytics, retail analysis takes a holistic view.
Here at Pattern, we have a suite of data to give you clear insights into what areas of retail analytics you are missing out on. Our data-driven ecommerce solution tracks what you need to grow. Request your demo today to learn about our platform, analytics access, and how to set yourself up for future success.
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Entering the ecommerce landscape is a huge undertaking for any brand—it usually requires a large investment in resources and expertise to really be successful. Any brand can quickly get in over their heads trying to navigate the nuances of SEO, fulfillment and logistics, distribution control, listing optimization, and meeting the numerous other requirements and administrative tasks to show up well on marketplaces.
Unfortunately, because it’s so easy for third party, gray market, and unauthorized sellers to obtain and sell products online, many brands find themselves pressured to execute an ecommerce plan without the right resources to succeed on marketplaces and their other channels.
So, for brands looking to enter the ecommerce space or improve their current and future performance, it makes sense to partner with an ecommerce consultant.
Pattern’s global presence and proven success with hundreds of brands has allowed us to develop highly effective ecommerce consulting services. We can guide your brand to navigate issues both large and small in marketplaces worldwide. To maximize your ecommerce efforts, you’ll need to understand what an ecommerce consultant does and how to select one who drives the right value for your brand and products.
An ecommerce consultant is a specialist in the ecommerce space who can give you personalized guidance on how to market your products and grow their presence on digital marketplaces.
An ecommerce consultant should be able to analyze your brand, audience, category, opportunity, and current roadblocks and help you understand how to utilize your resources (or what resources are missing) to be most effective in capturing your opportunities in the ecommerce space.
Not sure how to evaluate a consultant? Here are 4 key attributes to look for as you make your choice.
At Pattern, we prioritize brand obsession for a reason—we know that a brand-centered mindset makes a crucial difference in the outcomes and results our partners achieve. So in our experience, when you begin your search for an ecommerce consultant, it’s important to look for a partner who is specialized in ecommerce, invested in the product, and passionate about helping brands build and improve their strategies. Typically, this means finding someone that consults exclusively for ecommerce marketplaces, rather than choosing a consultant who offers many different services.
It’s also important to avoid choosing a consulting partner who can’t deliver the right experience for your brand. The best indication of whether your potential consultant can do that is to review their history, data, and results with other brands. Ask if they’ve helped others in your selling category, if they’ve solved specific issues your brand is facing, and why they feel you are a good fit. The key is to leave the conversation feeling confident that you understand your consultants’ capabilities and whether or not they match up with your needs.
It’s best to pick a consultant who knows how to guide a brand onto and through multiple marketplaces worldwide. You’ll want to take a look at your long-term strategy and think about the regions and platforms you’re currently on and where you might want to take your brand in the future. If your consultant is truly great at what they do, they’ll be able to help you perform well enough with your current product roadmap that it’ll be a no-brainer to expand your presence at the right time.
The most effective partnership with an ecommerce consultant will be able to give you both recommendations and point you to solutions for making those changes in your planning, processes, and execution. Your time and money is valuable, so you want to make sure that you’re spending it as efficiently as possible as you follow your consultant’s advice. So, before you commit to an ecommerce consultant, ask about the resources and concrete solutions they typically recommend to the brands they work with.
Finding an ecommerce consultant that checks the boxes can be a difficult task. At Pattern, our entire focus and drive centers around giving brands the tools and resources they need to succeed on domestic and international ecommerce marketplaces.
With over 100 global ecommerce consultants across 10 global offices, we have the right tools to partner with brands across the world to achieve better ecommerce success. We give specialized advice, then make sure our partners have all the adequate SEO, social media, CRM, Amazon multi-channel fulfillment services, and ecommerce outsourcing services they need.
Interested in ecommerce consulting services? Set up a call here to learn what Pattern can do for your brand on global marketplaces.
If you’re interested in expanding your brand internationally, you’re probably familiar with Tmall. Tmall is Asia-Pacific’s (APAC) largest marketplace, and indisputably the biggest ecommerce powerhouse in the world. It represents a huge opportunity for many brands, but entering the space is also a big challenge to take on.
At Pattern, we recommend brands looking to enter international markets should first focus on dialing in their domestic presence. Once you’re satisfied that your brand is well-represented and optimized locally, you’re ready to think about tackling new regions, like APAC, and launching on marketplaces like Tmall. Our top advice for entering Tmall is to understand and strategize around its three most important metrics: service, delivery, and content.
Service, delivery, and content ratings are the three elements that make up Tmall’s Detailed Seller Rating (DSR) score. Each component is scored on a scale of 1-5 that is displayed publicly on your brand’s Tmall flagship store page. This is meant to help consumers decide whether or not to purchase your products.
DSR scores are important because they’re highly influential in driving conversions—customers see DSRs as a way to quickly understand if a brand is trustworthy and worth buying from. They also matter quite a bit to Tmall itself—they monitor these scores and will take action to close flagship stores with low scores.
Let’s go over each element of the DSR score and some steps you’ll need to take to achieve high ratings.
Service is a huge ecommerce component in APAC marketplaces. In most other regions, product listings are static, and consumers use content and reviews to make a decision about what to purchase. On Tmall, consumers want to interact with your brand and test its validity before buying—each transaction takes at least one human interaction to convert.
So, to get a great service rating, you’ll need to have a large, established customer service team dedicated to Tmall sales that can offer real, human touchpoints and very fast response times. To get an idea of the speed your agents should be capable of producing, in our Tmall benchmarking exercise, 92.5% of brands’ customer service agents replied to queries via live chat within 30 seconds, 5% replied within one minute and the remaining 2.5% of brands took longer than a minute. So, look for a Trade Partner (TP) that has enough resources to compete with those numbers, support your sales, and maintain a good DSR score.
Another thing you’ll really want to focus on is a high-quality delivery experience for consumers. As in other regions around the world, Tmall consumers have high expectations for their delivery experience. In our Chinese consumer polling report that targeted consumers buying from Tmall Global, we found that 6% expected same-day delivery, 15% expected next-day delivery, and 46% expected 2-5 day delivery.They want to receive their products fast and they want the products to be undamaged and pristine upon arrival.
So, to achieve a high score for your delivery capabilities, we highly recommend partnering with a TP or ecommerce accelerator like Pattern (which serves as a TP) who has the ability to facilitate your distribution. Make sure your TP has the right infrastructure in place to support high-quality logistics experiences for all of your consumers—they should have an established, well-oiled delivery process in place and the capability to fluidly add you to their current fulfillment system.
As in every digital marketplace, content is a huge component of the decision-making process for consumers on Tmall—they can’t touch your product with their hands or see it in person before buying, so it’s important they’re empowered to make a good decision on whether or not to purchase based on the videos, images, and copy.
The goal is to make all of the content and relevant information on your flagship site easily-accessible—consumers should be able to visit your page and make a decision about whether or not to buy without navigating to a new site/page and taking their conversions with them. Images with text and extensive product details are a great way to do this, as well as making sure your service team can speak to all aspects of your product with any consumers (via text or chat).
As the world’s foremost brand partner for ecommerce acceleration, Pattern truly understands the significance of international expansion. With regional offices around the world, Pattern knows how to successfully launch and grow brands on Tmall and other marketplaces, with the data, insights, and marketplace intelligence to build the metrics that matter.
It’s important to have a fantastic brand presence, a knowledgeable guide, and a clear go-forward strategy for your best chance at success. With our in-country resources, expert teams, and extensive experience in growing brands around the globe, Pattern can help you get there.
Set up a call to get your international expansion strategy in motion.