Navigating Seasonal Products By Customer, Not Calendar
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.
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.