All the retailers who have invested in analytics are proud to say that their decisions are informed and guided by the numbers. But how many of them really dig deeper into interpretation of these numbers?
We recently worked with a retailer who believed that on average their customers spent $60 each time they walked into the store. This seemed to be a favorable number to them. But when we dug deep, we found out that they in fact had two distinct segment of customers – the one who spent less than $30 with each store visit and the other who spent more than $80 with each store visit. Our analysis further revealed that the millennials who were spending more than $80 were spending mostly on electronics and apparel. The ones that were spending less than $30 were the baby boomers who were mostly picking up groceries. Our analysis also showed that millennial spend did not change with season. But the baby boomers spent more during the summers.
This realization helped them create different types of strategies and marketing offers for each customer segment.
So just having numbers and dashboards is not enough. You should also be able to read those numbers and interpret what they mean.