How to Better Meet Your Customers’ Needs using Data Analysis

Meeting your customer’s needs requires a deep understanding of their wants, preferences, and pain points - information that isn’t always easy to find. However, by studying shopper purchasing patterns, you can begin to build a more informed depiction of who your customers are and what drives them to buy.

Here’s some key types of analysis to help you better understand your customers’ needs.

Shopper Profiling

Shopper profiling uses segmentation to paint a picture of who shops your brand. Shopper profiling can be based on behavioral (brand buyers, lapsed shoppers, high category spenders) or demographic (age, income, geo, gender) attributes. By categorizing shoppers into personas by their distinctive traits, marketing and insights teams can better target their efforts against the right people.

New/Lapsed Category Buyer Analysis

Category buyer analysis identifies new shoppers who previously didn’t buy and subsequently did, or lapsed shoppers who previously bought, and subsequently didn’t. By profiling and segmenting these consumer groups, teams can gain a better understanding of who these shoppers are and what motivates them to switch to or from different brands. This presents an opportunity to stem losses from lapsed shoppers and grow sales by encouraging new shopper conversion.

Category Share of Wallet & Leakage

Analyzing category share of wallet allows you to identify opportunities to capture more category spend from shoppers at the retailers you care about most. By measuring the % of category spend shoppers are allocating to your brand, you can understand how much of their spend is leaking to competitors. This makes it easier for brands to pinpoint which competitors represent the biggest threat at different retailers or geo’s.

Shopper Conversion & Trip Frequency

Shopper conversion and trip frequency can help you grow sales by identifying opportunities to attract new shoppers or to increase trip frequency for existing shoppers. By unpacking new and existing shopper patterns, you’ll develop a better understanding of penetration trends within your relevant geographic competitive set, and can accurately track progress against your goals.

Brand Loyalty Analysis

Analyzing consumers brand loyalty over time provides a opportunity to monitor your brand health - and provide a deeper understanding of consumers’ perception of your products. By measuring your shoppers’ share of category requirements (share of wallet), you are tracking a measure of loyalty (their spend with you) against the category (their spend overall). Shoppers who are highly loyal to brands are more likely to seek them out instead of purchasing an option by a competitor brand.

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