What: From weather to discovery, to social media analytics, to predicting a customer’s lifetime value, data can be a key factor in improving performance for retailers.

Why it is important: The benefits of AI technology and analytics can improve the offer retailers provide to customers, ultimately winning client retention and improving sales.

AI has shown that as little as one degree of Celsius difference between cities is enough to affect customer behaviour. Weather forecasts have been shown to be an important predictor of shopper behaviour before important retail events. For example, unseasonably warm weather near a winter sale could alter what customers will purchase and necessitate an adjustment to selling suggestions.

Additionally, the data retailers have can assist in improving the assortment offered by analysing what clients are searching for but don’t discover. The gaps for product discovery could be found in price points across the assortment or simply a lack of products within private labels. Looking to TikTok can also help identify trends that retailers use to determine their product offers. As influencers and trends vary across Instagram and TikTok, forecasting which trends to capitalize on will require observation of both platforms.

Finally, investing in the right customer can greatly benefit retailers. Mytheresa has identified the importance of a client’s first purchase as an indicator of loyalty. The more high-value and ready-to-wear the item is, the greater chance the client will return for another purchase. Aside from looking at the first purchase, analysing which emails are opened and which payment methods they use can help companies direct marketing to the right place. Improving communication targeting will deepen the relationship and loyalty of these high-value customers.

Direct and personalized engagement with clients through the help of data software analytics can lead to a better assortment and sell-through rates while mitigating unnecessary spending on untargeted marketing.

The best data uses for retailers