Data analytics is the process through which data scientists inspect, cleanse, group and transform data to come up with insights, correlations, and patterns. In today's world, data analytics helps fashion brands understand consumer behaviors and increase sales.
Fashion houses that are planning to launch new collections depend heavily on the predictive models of data analysis to foretell trending clothes and the styles which will do well during the season.
Let's look at some of the ways to enhance sales figures using data analytics tools:-
1. Predicting consumer behavior: If a buyer has checked one website for one product or similar types of products when they open other websites, the same advertisements keep playing on the sides or at the bottom of the page. Fashion brands that try to sell their products aggressively tie-up with Google to ensure that their trending clothes collections show up on all the advertisements of the prospective buyers.
2. Identify strong products: Data analytics will help designers understand the strong products in their trending clothes collection. If the designer has spent a little money designing the e-commerce portal, which has insights and reports on the most sold products based on region or time of the year, then it will be very easy for them to identify the strongest products.
The data analytics tools will identify the strong products to highlight in social media advertisements, Pinterest ads, print media advertisements, etc. This will invariably increase the sales and add to the top line of the balance sheet.
3. Identify detractors: If the customers are unhappy with the products of one fashion brand, they will shift to another brand. Strong data analytics tools can help the fashion brands identify such detractors who may damage the brand reputation. It is critical for the customer service team to reach out to such customers and address their grievances.
Attractive promotions can lure such customers back. The designer needs to remember that business grows primarily through repeat business and loyal customers.
4. Customer Engagement: Designers need to ensure that their fashion brand regularly engages with customers on social media.The designer can effectively monitor customer engagement with robust data analytics tools embedded in the motoring system. The trending clothes which the designer has launched in the last season will garner honest feedback from the users. The designer will get insights into the trends that performed better than others by analyzing this data. Designers can use this information to launch similar products in the upcoming seasons.
This trend analysis will certainly boost sales and give a proper window into the customer's opinions about the collection.
5. Better segmentation: Email campaigns often fail to yield the necessary results because the same email is sent to all the previous customers. Youngsters and teenagers desire to wear different trending clothes from the working professionals in their 30s, 40s, or 50s. Hence, data analytics tools can segment the customer using different demographic criteria and send relevant promotional material to each section of the audience.
This step will definitely help increase the sales of the various collections for the fashion brand by appropriately segmenting them for the right target audience.
6. Pricing: A good data analytics tool can help the fashion brand to track the price of their trending clothes compared to similar products of their competitors. It will help get an idea of the price the customer is willing to pay for a specific kind of material and style. Accordingly, the fashion brand can change the pricing of the merchandise and boost sales.
For example, Chico's Inc. hired a product pricing and predictive analytics platform provider to improve its sales figures. The data scientists helped the company to improve their design and work on their pricing decisions for their trending clothes.
7) Lead Generation: Prominent fashion houses use data analytics and artificial intelligence (AI) to do robust lead generation. A consumer on a competitor's portal can leave important clues to their buying pattern. If the data analytics tools can capture that trend effectively, the fashion brand can send promotional content to such customers and increase their sales.
Most of the customers do not go to one portal to complete their purchase when it comes. Customers explore different trending clothes and add the products they love the most to their wishlist. A good data analytics tool can analyze those wishlists and send relevant promotional content to engage the customers and prompt them to finally buy the merchandise. Even automating the pre-sales process through data analytics tools will save a lot of time and help the fashion brand reduce overhead costs.
8. Pipeline management and forecasting: No customer buys the same kinds of clothes all the time. A fashion brand can benefit from an analysis of buying patterns of their customer to suggest items that the customer can think about buying in the future. For example, if a young customer has shown interest in torn jeans and has made a purchase of that product, data analytics can display similar products. Free giveaway contests for similar products can also help designers and fashion brands increase their sales figures.
The data analytics tool here successfully creates a pipeline for the customer and keeps suggesting products every season based on their buying patterns. The tool also needs to keep in mind the average price that the customer pays for a product and recommend items in that price range.
Fashinza will be your trusted partner if you are planning to launch a new fashion brand or planning to increase the sales of your existing fashion brand. Trending clothes in the fast fashion range need quick designing, quick production, and quick delivery to the retail outlets. Hence you need a sourcing partner who will help you in realizing your dreams quickly. Reach out to our capable team, and we will be at your service always. Happy holidays!