Every retailer wants to know how frequently the consumers are buying their products. A thorough market analysis help the retailers track what products an individual customers are buying over time. It is indeed great for a company to figure out all of them. Let’s see how market research method helps to get a clean vision of the customers.
The researcher uses the segmentation method where they use the transactional data to segregate the customers into groups based on their purchase history. This process can be performed at multiple points in the supply chain. This process can also be easily performed to segment distributors of the products if the retailers don’t sell to the final customers. The transactional data is distributed into different time frames and consumptions are evaluated in each of these time frames. Ideally, four to five years of transactional data are required depending on the product re-buying cycle. This is because durable goods such as appliances or cars do not get damaged as quickly as consumables. Usually, the analysis is performed using a longer time frame. The main aim to perform the segmentation method is to track the consumer in the data to establish a purchase history.
The analysts divide the customer into three groups buyers, tryers and lapsed customers. Depending on the volume of data available buyers have purchased across all over the time frame, tryers have made a single purchase and lapsed consumers have made no purchases within the time frame. Now the goal of the researcher is to move the consumer up the ladder from lapsed, tryers to buyers.
The additional research basically looks into the results from the transactional data. They can compare the amount of product classifications acquired across the groupings; scrutinize the churn and the products most frequently bought by any new customers. They also regulate which products have the best pushing prospects.
The market research agency is there to cultivate a strong relationship between the retailers and the customer by assisting them to target consumers more proficiently.