Analytics are critical to measuring retail success
Communicating with today’s shopper requires an understanding of the channels and devices they are using to interact with retailers, and knowing how to properly measure the effectiveness of those channels and your marketing message.
Yet, an online survey conducted this month by Synchrony Financial, in conjunction with the National Retail Federation’s NRF SmartBrief, found 92 percent of respondents are not completely satisfied with the analytics tools they have in place to measure results and impact sales.
The survey results underscore the need for retailers of all sizes to effectively analyze data to measure success and impact behavior. Analytics tools can help companies gain actionable insights to engage with consumers through the right channels and help improve or maximize marketing campaign performance and sales.
“As the number of purchasing methods expands along with the amount of data available on consumer behavior, a company’s measurement tools need to be more sophisticated to keep pace,” said Toni White, chief marketing officer, Synchrony Financial. “Measurement is a critical component in marketing, and there are powerful tools that can be deployed across all campaigns to influence strategy and drive improved results.”
The Analytics Toolkit for Retailers white paper, released today by Synchrony Financial, outlines five critical strategies to help a company gain insights into their customers’ behaviors and buying habits – so marketing resources and budgets can be focused for the greatest impact.
1. Targeting and Predictive Modeling: Focus efforts to drive maximum impact
2. Contact Management: Track and refine the number of customer interactions for optimal response
3. Channel Optimization: Contact and engage customers through their preferred channel
4. Segmentation: Understand each unique audience segment for customized communication offer strategy
5. Media Mix Modeling: Optimize results by adjusting the media mix
These insights are the result of Synchrony Financial’s learnings derived from working across multiple clients over many years. The concepts have been tested across a variety of small and large retailers. The learnings are then applied to drive marketing strategy, improve portfolio results and grow incremental sales. Synchrony Financial uses analytics to drive customer and business strategy, and measure the results and impact. Toni White added, “We are constantly seeking to leverage new tools, techniques and strategies that help our partners grow.”
The development and implementation of a strong analytics toolkit helps maximize the effectiveness of marketing programs. It begins with setting up the right measurement strategy to uncover incremental gains for all marketing initiatives.
The “Analytics Toolkit for Retailers” white paper and other retail and shopper insights can be viewed at synchronyfinancial.com through the “Featured White Papers” link at the bottom of the home page, or in the “Insights” link under the “News” tab at the top of the page.
One-hundred thirty-five companies participated in the online survey distributed to SmartBrief subscribers, including top chains, specialty stores and online retailers in the United States.
Synchrony Financial is a consumer financial services company.
Subscribe to Aftermarket Business World and receive articles like this every month….absolutely free. Click here.
