The Retailers of Tomorrow are then combining the insights gained through Customer Analytics, with the insights gained through CRM, to identify their retail locations that are not reaching their full sales potential. They then create and execute successful marketing campaigns, directed at only their best existing and potential customers in those underperforming stores’ trade areas. The result is improved store performance due to significant increases in both the number of transactions per store and the average dollar amount per transaction. All made possible by knowing everything they can about their customers, so they could talk to them, and potential customers that look just like them, in the best ways possible.
Because these Retailers of Tomorrow know exactly who their best customers are, where everyone that looks just like them is located, and the value that those prospective customers represent to any potential location, they are also able to find top-performing new locations. This enables these retailers to fill their real estate pipeline with great new locations, while avoiding the underperformers. Opening up an underperformer is the most expensive thing a retailer can do, and it happens all too often because retailers are not taking advantage of Customer Analytics and CRM/Data Warehousing.
It’s too bad too. Because it doesn’t have to be that way. Customer Analytics and CRM/Data Warehousing is easily implemented. However, some retailers will just continue to ignore these solutions. And when they struggle because of it, the media will just give them an excuse, and blame it on the economy.