By
Justin Bougher, SiteSpect
Weather and seasonal changes can have a big
impact on retail sales and the type of products that see the most success.
However, not all consumers across the U.S. will react to shifts in weather in
the same way. In fact, a recent NRF report noted that just an 8-degree drop in
temperature in mid-April will have a different impact on sales of bicycles,
grills and outerwear in Phoenix (where bicycles and outwear interest grows),
than it will in Chicago (where bicycle sales decline).
As retailers seek to identify new ways to be
competitive, they may be focused less on their customer’s needs and more on
being first to market for the upcoming season. This is a big mistake. By trying
to be the first to issue a summer swimsuit line in February, retailers can come
off as tone deaf and misaligned with their customers. More importantly, the
introduction of new seasonal items can choke sales of current seasonal wear,
hurting the business in the long run. With the retail market more crowded than
ever, businesses can’t afford to make sloppy assumptions and expect to
survive.
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So how can retailers better align their
seasonal promotions and options with the needs of their consumers? It all comes
down to the data. Specifically, retailers should consider assessing their available
customer data resources in the following manner:
Take time to understand a customer’s background and its impact on
purchasing decisions.
Customer preferences can’t be identified
simply by one aspect of their background. Millennials in Colorado may have
different preferences for seasonal promotions than those in NYC (who may be
still dealing with snow in March). To show they understand customers, retailers
need to have a 360-degree view — assessing shoppers’ location, age and other
insights like past purchases that may indicate common activities, behaviors or
interests. Tying this data to changes in weather patterns can help retailers to
capitalize on previously unseen opportunities. For example, if the Northeast
gets a heat wave in January, but then temperatures drop below freezing in
February, retailers can quickly understand how this might impact long-term
sales of winter clothing versus their spring line.
Learn how different device usage could influence seasonal sales.
Different sets of consumers will have
different preferences for engaging with brands. They will also have different
preferences for how they prefer to receive promotions or information on new
product lines. Devices notifications can also influence different types of
consumer engagement. A mobile push notification may deter shoppers from
checking out new seasonal lines, but an email coupon toward the end of March
may be the right move to boost early sales of a spring line.
Device-driven insights also can provide
clarity into how customers choose to make their purchases. While Millennial shoppers
may make small purchases continuously, other generations may like to do one
shopping experience per season. Assessing the frequency of when and where
consumers shop will ensure that promotions don’t oversaturate a customer or
fall on deaf ears.
Take time to go beyond purchase history.
Similar to how retailers should assess device
use, they also need to take a step back to understand customers’ behavior
beyond what they choose to purchase. In many cases, the items they choose not
to purchase could provide more insight into the types of offerings a retailer
needs to invest in to improve customer loyalty. Retailers should also take the
time to understand the types of products a customer searches for at different
times of the year. If they are browsing bathing suits in January, why aren’t
they choosing to buy them?
Early season shoppers can also be very helpful
in showcasing the types of items that will be popular. By taking time to
analyze the purchases they make or their searches, retailers can identify what
is missing in their offering, what they need to have extra stock of and what
just might not hit the mark.
In the age of Amazon, the success of seasonal
items is about so much more than just the calendar. To be successful, retailers
need to instead focus on their customers. Taking the time to analyze internal
data and interpret consumer behavior, retailers can create a more comprehensive
profile of shoppers — empowering them to implement targeted strategies for
unique, personalized experiences.
Justin
Bougher, VP of Product at SiteSpect.,
oversees product management and product marketing to ensure that customers consistently
benefit from a world-class digital optimization platform.
