Why and Where Do We Shop?
By: Cheryl Beinetti, Industry Analytics Principal – Retail
Cheryl helps Retail/CPG industries identify, develop, and drive high-value, innovative business ideas in the area of Predictive Analytics & Optimization
Is it the thrill of the sale, the coupons, or the bargains; or does it just bring us a good feeling. Picking out just the right item for a loved one is a happy experience, but spending $250 on groceries each week doesn’t exactly make my week. You can watch shows about extreme couponers who have closets filled with toothpaste and toilet paper just because they had a coupon. Clearly that is some high one gets from using coupons even if they don’t need the items. But people shop because they want or need something, they like the experience, they saw a clever ad about the product, or they are just bored If we go shopping and the store or website doesn’t have what we want, what do we do? Get a rain check? (Do stores even have those anymore?) Probably not, because we want what we want and we want it now! We go elsewhere and purchase from someone who has what we want at the price we are willing to pay.
It does boil down to supply vs. demand. Do you have enough product to meet the demand of your customers? Even the ones that buy 10 tubes of toothpaste because they have a coupon? How do you truly know what your customers desire, at the price they are willing to pay and where they will shop – whether it is in a brick and mortar store, over the phone, or on-line?
Replace Your Crystal Ball with Next Generation Predictive Analytics- Come talk to us during NRF at the SAP booth #1712. We look forward to meeting with you and discussing how Predictive Analytics can improve your business in 2012 and beyond.
Interested in setting up a meeting with SAP at NRF? Please email: Retail_Forum@SAP.com
Want to learn more about SAP Retail activities at NRF? Visit: SAP Retail at NRF
Loyalty Management in retail may prove to be beneficial for customers and Vendors alike.
Regards,
Harshit Kumar