How to Optimize Your Health and Beauty Store by Using Retail Analytics?
Cosmetics is present in almost every society on earth throughout its seven millennia of history. After the first shop opens, health and beauty retail has been getting more attractive day by day. Now more than ever, consumers are increasingly paying attention to their skin, hair, and body. Thanks to Instagram influencers and YouTube vloggers, the health and beauty sector is booming.
Retail is undoubtedly in a state of flux, and, in some cases, in a state of crisis, but the beauty customer is still buying in physical stores. More than 70 percent of global beauty sales were made in brick-and-mortar stores, according to Euromonitor. However, Brick-and-mortar stores should evolve to keep their shares in the competition. Capturing and keeping today’s consumer loyal to the store requires understanding not only where she is headed, but how — in ways both subtle and sweeping — she has changed.
To increase the efficiency in the store, to increase the sales, to stand out from the crowd, and to improve the consumer experience in the store, offering competitive advantage is a matter to think through. This may seem unachievable at first glance, but with the use of technology, simple changes that have the most profound effects upon the consumers can be put into practice effectively.
Retail analytics offers a retailer many features. Several insights about the customer can be obtained. The utilities that retail analytics offers to health and beauty retailer can be listed as follows:
- Marketing & Pricing
- Staff Management
- Checkout Line Optimization
- Stock Optimization
- SKU Range Management
- Store Space Optimization
- Campaign Optimization
Marketing & Pricing
Beauty and health product range is extensive. Different brands, different types of products are displayed in the store. At that point, consumer behavior is critical for the retailer. Questions such as “How do the customers react, which product is selling better, what should be optimal price depend on the day” can give priceless insights about customers. Retail analytics helps you to monitor the impact of your promotions and increase the efficiency of your marketing strategy by using these data.
In the cosmetics store, shops make up stations are the places that customers try products. This experience results in a sale. By measuring these areas’ efficiency, consumer response can be detected, and marketing strategy can be optimized.
Health and beauty shop contains many brands, and the areas are rented to these brands. This rent can be set by the data that retail analytics collected.
In stores, staff quantity and staff qualifications are essential factors that help to get customer satisfaction. Health and beauty consumers need detailed information about products to buy the best one. The personnel of a shop should have sufficient knowledge of all products. It can be measured by retail analytics. Also, the number of personnel can be optimized on an hourly, daily basis with the help of data that is provided by retail analytics.
Checkout Line Optimization
Health and beauty sector has many players. The competition is at a high level. So the waiting time in the checkout queue should be minimized. When customers wait on the checkout line too long, they can give up buying products; even they can go to competitors Checkout area products are optimized by analyzing customer behavior by retail analytics.
In the health and beauty sector, the inventory turnover rate is high. Out-of-stock scenarios can result in a loss of the customer. Also, it means when the next time the customer decides, your shop can fall back. With the help of the retail analytics stock rate can be optimized.
SKU Range Management
The product range is extensive in the health and beauty sector. For customers, “seeing the right product, at the right place, at the right time” is important. Retail analytics provides you which product group should be prioritized for the customer.
Store Layout Optimization
When designing store layouts and imagining flow, a certain number of logistical considerations come in to play. With the help of retail analytics, you can detect the busy areas in the shop. Dead points can be detected and optimized. Shopper path can be tracked, and the best layout can be decided to obtain the most profit from the customer.
Makeup stations can be positioned to get the most satisfaction and interaction from customers. By optimized location, makeup stations’ performance can be increased, and pleasant experience is presented to the customer; so sales probability is increased.
Health and beauty retailers have many campaigns in a year. With the help of retail analytics, customer behavior can be detected during the campaign period. Correlations can be determined by analyzing in-store department-based traffics during campaign periods. According to this data, you can optimize your campaign strategy step by step. You can check out our blog if you want to know how Udentify can optimize your campaigns.
By adding analytics tools to in-store solutions, retailers are able to measure and understand the performance of the store. How? By reviewing the data it provides, making content more relevant, by improving the in-store experience, and by increasing ROI.
Briefly, retail analytics provides health and beauty retail a lot of features and advantages. Store profitability and conversion rate are increased when retail analytics is used correctly.
Did you check our business intelligence solution with Retail Analytics Solutions? You can start using Udentify which analyzes the costumers’ behaviors at brick-and-mortar shops. Udentify provides local conversion rate, head counting, heat maps, and order analysis. Thanks to the computer vision technology, it can follow the customers anonymously, with which it gives meaning to the data that is gathered from the tracking by converting them to statistical models. It enables company managers to take data-oriented decisions by its management interface.