The Real Cost of Assortment Planning Mistakes

Published on: 24 October 2018 Last Updated on: 22 February 2020

In the world of e-commerce, there are many practices, concepts, and techniques that can help you boost your revenue and enjoy some extra profits. One of the least mentioned category of mistakes in this manner – and yet one of the most important – focus on the mistakes related to the assortment.

In other words, these mistakes include all the wrong moves that e-commerce store owners are making during the buying process. The real trouble of these mistakes is the fact that many are unaware of their real cost.

This is why we have decided to guide our readers in on the dangers of improper assortment planning – and how it can be fixed. The key, as you will notice in the sections below, is to optimize the process of buying inventory and therefore match the customer demand in a perfectly precise way.

Mistake #1: Using Excel to Track Your Buying Process:

One of the biggest mistakes that e-commerce owners make is the use of Microsoft Excel as a way to track their buying. Even though this seems as a logical way to organize your buying process, spreadsheets are generally a bad way to organize your information.

Speaking of, anything that contains information in categories (added manually) has to be automated. In times when e-commerce owners are experiencing a magnitude of orders online, adding buys manually is time consuming – which is why it needs to be automated.

Mistake #2: Improper Arrangement of Clusters:

Clusters are the next mistake we are focusing on, and one that is tremendously big nowadays. The main way in which e-commerce managers are making it is by assigning every store to a single cluster – which needs to be reorganized.

More importantly, products need to be clustered at a product class level, and use the information in quantities (before the assortments are bought). By doing this, you can link the buying process to the actual allocation and eliminate problems before it’s too late.

Mistake #3: Inter-Store Inventory Balancing:

If you ever caught yourself in a situation where you are losing sales in on store due to your lack of stock for a particular item, you are probably having the same product sitting and collecting dust on the shelves of another store (if you manage more than one store).

At this point, the best way to solve this problem is by a simple trick – which does not involve the purchase of new inventory or the elimination of the inventory in one store so that it can be moved to another.

Alternatively, you should use a smart predictive analysis engine and a tool that is known as “Inter-Store Inventory Balancing” to analyze every single influencing factor of your retail supply chain. As an advanced form of analytics, a tool like this will recommend the optimal inter-store transfer schedule so that you move merchandise from one store to another (from low to high demand).

Mistake #4: Going Big (Instead of Going Custom):

A lot of multi-channel retailers are nowadays focused on the “best rated” programs and solutions for optimizing their assortment planning. And while in most of the cases programs like these are built to last and cover as many aspects of product assortment as possible, they usually lack the functions that are needed in specific situations.

For example, these programs often fail to calculate hundreds of algorithms on the kind of Big Data that today’s omni-channel retail products are able to churn out on a daily basis. Therefore, the general conclusion that we can all take from this mistake is to properly analyze your needs and implement a solution to analytics that works for you as you scale your business, is end-to-end integrated and coordinated between your merchandising and marketing.

Final Words:

At the end of the day, we all must accept the fact that mistakes linked to product assortment happen all of the time – and there is no harm in admitting that.

As a retail expert, however, you should always be able to know how to fix them. Your assortment needs to be consistent, scalable, matching your needs and optimized for your specific customers.

This is what proper assortment planning is all about. Ultimately, it is what will help you determine how much of your merchandise should be placed on your shelf. The end result of proper planning goes a long way – mostly resulting in increased sales and improved customer satisfaction.

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4 points to consider when creating a Great Content Marketing Strategy

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Email marketing is a field, truely competitive in nature. It seizes the interest of subscribers along with encouraging them to get up close and personal with your content. Let me tell you an effective way of achieving this- personalization. Klaviyo has recently gained momentum for being the leading email marketing platform. Not only does it provide robust tools that give life to your boring email templates, but it also uses tags. Some of these tags use the dynamic insertion of individual subscriber data. In this comprehensive guide, we are going to dive into multiple ways of using personalization tags in Klaviyo email templates. Stick to us till the end if you want to comprehend the basics of personalization tags. Get a detailed idea about how to implement advanced techniques and various other useful strategies. Let’s get started, then! Understand the Basics of Personalization Tags In general terms, personalization tags refer to placeholders in an email template that get replaced with some specific information related to your subscriber list. These tags usually include the subscriber’s name, recent purchase, and even the location. For instance, rather than beginning the email with a typical “Dear Customer” statement, use tags like “Dear [First Name]," which makes the email look more personal. Klaviyo uses personalization tags that are super easy to use. You can either insert them directly into your templates or in other email drafts. For example, typing “{{ first_name }}” in your template will automatically replace it with the subscriber’s first name when the email is sent. The change might look small, but it makes an enormous difference in the emails you receive, giving the impression of a more customized email. The correct use of these tags assists in building a positive connection with your audience. If subscribers see their personal name or details, they are more likely to open the email and even click on links. Now, this is exactly why personalized emails are much more popular than custom emails. All in all, understanding and using personalization tags is the initial step in making your Klaviyo emails more engaging and effective. With basic tags like the subscriber's name or location, you can start to see an improvement in your email open and click rates. This sets the foundation for more advanced personalization strategies. Personalize Subject Lines for Better Open Rates Subject lines are initial elements a subscribers see, so making them personal can greatly increase your open rates. In Klaviyo, you can use personalization tags to include the subscriber's name or other relevant information in the subject line. For instance, you can use "Hey {{ first_name }}, See What's New Just for You” instead of a common subject like "Check Out Our New Products.” Such an approach gives your email a more personal touch, and people are likely to open it. When people see their name in the subject line, they are more likely to open the email because it feels like it was written specifically for them. And that’s not all! There is a plethora of data that makes your subject line more engaging. All it takes it to look for all those data. For example, you can take subscriber’s location into account and pitch them with a more personalized email. Another example could be using recent activity data. In case the subscriber recently viewed some product on your website, you can create a subject line like "Still Interested in {{ product_name }}? Get It Before It's Gone, {{ first_name }}!" Amazing, right? 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For example, if a subscriber explores a product page without completing a purchase, you can send a follow-up email containing a personalized message such as: "Hi {{ first_name }}, we noticed you were checking out our {{ product_name }}. Here’s a special discount just for you!" Including a discount code or highlighting product features can entice them to return and complete the purchase. Another scenario involves leveraging cart abandonment emails. In case a subscriber adds items to their cart but doesn't finalize the purchase, you can send a customized email prompting them to complete their order. Take, for example, a message that can send a reminder email: "Hi {{ first_name }}, you left something in your cart! Don't miss out on {{ product_name }}." Including images of the abandoned products and a direct link to the cart makes it easy for them to pick up where they left off. Post-purchase emails are also effective. 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Just envision receiving an email that greets you by your first name, suggests products aligned with your past browsing, and presents exclusive discounts tailored to your preferences. This exemplifies the impact of personalization tags in practice. With Klaviyo, you have the tools to implement personalization tags seamlessly into your email campaigns. Whether it’s using demographic data, past purchase behavior, or engagement history, there are countless ways to tailor your messages to each individual subscriber. Leveraging the goodness of personalization tags in your email template helps you send targeted and relevant content. It resonates with your audience on a deeper level. This not only leads to higher click rates but also fosters stronger customer relationships and ultimately drives more conversions. So, don’t miss out on the opportunity to take your email marketing to the next level with personalization tags in Klaviyo. Explore various strategies, analyze outcomes, and consistently refine your campaigns to enhance their impact. By adopting the appropriate methods, you'll witness a significant increase in click rates and witness your business flourish. Read Also: How to Integrate Email Marketing With SEO? Your Ultimate Guide To Creating SMS Marketing Campaigns Getting The Most Out Of Your Email Campaigns By Getting The Audit Right!

Career Spotlight: Becoming A Market Research Analyst

Do you know how a company just knows what you want? They collect a few surveys, and suddenly they know more about your requirements than you! Is it all automated? Short answer, no! Someone is sitting and analyzing every behavioral data of a consumer to create profiles. They are called market research analysts! Are you just fascinated with the idea of a market research analyst? Or someone who is planning to become one? This is how you can become a market research analyst - Let’s begin with understanding who a market research analyst is. What Is A Market Research Analyst? Market research analysts are the strategic brains behind a company’s marketing decisions. Their job is to gather data on consumers and competitors and then use that information to guide business strategies. Whether a company is launching a new product or planning a marketing campaign, market research analysts are the ones who determine the best approach. They don’t just guess; they rely on cold, hard data. What Do They Do? A market research analyst’s role involves several core responsibilities. Why don’t we go through them to know the responsibilities a little better? Data Collection: Gathering data is the starting point of any market analyst. This could be through surveys, interviews, focus groups, or analysis of existing market data. Trend Analysis: After gathering the data, they identify patterns and trends that provide insights into market behavior. For example, what products are gaining popularity, or which consumer needs are currently unmet? How can the company they work for help meet them? Market Forecasting: Analysts will often predict future market trends. However, this is not just through guessing. However, when a company plans to launch a product next year, these professionals will forecast whether the market will be favorable or not. Furthermore, they also inform about whether the product will launch in the right direction and be liked by the audience you are targeting. Consumer Segmentation: By analyzing consumer data, they segment the market into groups based on behavior, preferences, or demographics. Reporting and Presentations: Then, they communicate their findings to decision-makers through reports, presentations, and visual data displays. Competitor Analysis: Understanding competitors’ moves and strategies is key. Market research analysts monitor what competitors are doing and how they’re positioning themselves in the market. What Degrees Do You Need To Get? There isn’t one fixed path to becoming a market research analyst, but certain degrees, and conceptual skills can give you a strong foundation: Bachelor’s Degree: A degree in marketing, business, economics, or statistics is often the starting point. Subjects like research methods, consumer behavior, and data analysis are crucial. Advanced Degrees: Unfortunately, just a bachelor's degree wouldn't do for more senior roles. Therefore, a master’s degree in market research, data science, or business analytics can be advantageous. An MBA is also beneficial if you’re aiming for leadership positions. Your educational qualifications should focus on building a mix of analytical, research, and communication skills, as these are the backbone of a successful career in this field. Later you can also upskill by becoming a data scientist, and it can open more doors for you. Tools You Will Need To Learn As a market research analyst, you’ll need to know the art of upskilling. You can do so with various tools and software that streamline your work: Data Analysis Software: Tools like SPSS and Python are complex tools. Mastering them might take you years. However, you should still try to master it because it is great for running statistical analysis and handling large datasets. Survey Platforms: Software like Qualtrics, SurveyMonkey, and Google Forms help design and analyze surveys. CRM Tools: Understanding tools like Salesforce and HubSpot are essential for tracking customer data and trends. This ensures that market research analysts do not depend on guesswork. Data Visualization Tools: Tableau, Power BI, and Google Data Studio are crucial for presenting data in a visually engaging way. Competitive Analysis Tools: SEMrush, SimilarWeb, and BuzzSumo provide insights into your competitors’ strategies and their market performance. After all, you will need to know what others are doing for their customers. That is always a sign of a good market research analyst. Mastering these tools will enhance your efficiency and make your work more impactful. Life Of A Day Of A Market Research Analyst What does a typical workday look like for A Market Research Analyst? We will go through it step by step to have a better idea of their role as a Market Research Analyst. 1. Morning: Data Collection And Initial Analysis The day often begins with reviewing the latest data from surveys, focus groups, or market reports. Analysts spend the early hours gathering information that will guide their day’s analysis. 2. Midday: Deep Dive Into Analysis The core part of their job kicks in around midday. This is when they run statistical models, crunch numbers, and identify key insights. Meetings with product teams or marketing departments often happen around this time to discuss early findings. 3. Afternoon: Reporting And Strategy Discussions After the analysis, it’s time to translate data into actionable strategies. Analysts prepare detailed reports highlighting key trends and recommendations. Then, they might deliver a few presentations to senior management to guide their decision-making. 4. Late Afternoon: Market Monitoring And Competitor Analysis Keeping a pulse on market trends and competitors is crucial. Analysts usually allocate some time in the late afternoon to social media updates, reviewing industry news, and studying competitors' moves. 5. End-of-the-Day Planning And Strategy Tweet Before wrapping up, their main job is to refine strategies based on the latest social media insights and plan for the next day’s tasks. After all, without understanding whether your current plan is working or not. The final work would involve technical analytics, strategic thinking, and effective communication, which would also include talking to their team. How To Get A Job As A Market Research Analyst Getting your foot in the door as a market research analyst requires more than just the right degree. Here’s a practical guide: Start with Internships: Right after you have finished your bachelor's degree, many companies offer internships in market research, allowing you to gain real-world experience while studying. Create a Portfolio: Build a collection of your best work. Whether from academic projects, freelance jobs, or case studies. A strong portfolio can showcase your analytical and research skills. Get Certified: Professional certifications, such as the Professional Researcher Certification (PRC) or Google’s Data Analytics Certification, can give you an edge. Network Actively: Next, join industry groups, attend webinars, or engage in professional forums. Networking can open doors to job opportunities and keep you updated on industry trends. Tailor Your Applications: When applying for jobs, customize your CV and cover letter for each position. Highlight skills like data analysis, research methodologies, and strategic thinking. Best Career Options & The Potential Salary The field offers diverse career paths. Depending on your interests, you might specialize as: Consumer Insights Analyst: Focus on understanding consumer behavior and preferences. Product Research Analyst: Specializes in product development and testing. Brand Analyst: Concentrate on evaluating brand performance and strategy. Competitive Intelligence Analyst: Monitor competitors and track industry trends. When it comes to salaries, market research analysts can get a reasonably good salary, provided you have the skills to back it up. Especially when your analysis begins to work for a company and starts bringing in a lot of profit. Entry-level positions typically offer between £25,000 to £35,000 annually. With experience, salaries rise to £50,000 or more. For those in specialized roles or with advanced degrees, six-figure jobs are not uncommon. Final Note! The path to becoming a market research analyst combines curiosity, a knack for numbers, and strategic thinking. It’s about more than just crunching data; it’s about turning data into insights that drive real business results. Whether you’re just starting out or looking to advance in this field, there are plenty of opportunities for growth and impact in the business world. Especially with the advent of digital marketing, you will have enough opportunities in terms of SEO, and website data analysis. So, are you ready to dive into this world where data meets strategy? You could be the one predicting market trends and helping businesses shape their futures. Read Also: Crucial Aspects To Bear In Mind When Selling Your Business How To Execute An Effective Video Marketing Campaign How to Market a Small Business in a Big City?

The Real Cost of Assortment Planning Mistakes

Mistake #1: Using Excel to Track Your Buying Process:

Mistake #2: Improper Arrangement of Clusters:

Mistake #3: Inter-Store Inventory Balancing:

Mistake #4: Going Big (Instead of Going Custom):

Final Words:

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Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Career Spotlight: Becoming A Market Research Analyst

The Real Cost of Assortment Planning Mistakes

Mistake #1: Using Excel to Track Your Buying Process:

Mistake #2: Improper Arrangement of Clusters:

Mistake #3: Inter-Store Inventory Balancing:

Mistake #4: Going Big (Instead of Going Custom):

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Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Popular

Follow Us

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