During difficult economic times, it is especially important for distributors to protect against competitive encroachment.…
Adding an extra item to every fifth order can drastically increase your profits. With access to the right purchasing, profiling and behavioral data, it’s easy to determine which orders are most likely to benefit from this strategy. On average, adding a single line per order on every fifth order can result in 40% more profits. Small changes like this can make a big difference in overall sales and help your business grow. With the right data and analytics tools, it’s easy to make well-informed decisions about which orders to add the extra line to and maximize profits.
By leveraging insights from your purchasing, profiling and behavioral data, you can easily identify opportunities to increase profits by adding a single line per order. This kind of analysis will help you determine where to add the extra line and make sure that you’re making the most of your resources. Best of all, you’re adding revenue without a significant increase in the cost of that order.
One of the simplest ways to add more lines per order – and thus increase your profitability – is to segment your customers to make targeted offers. Segmentation is a powerful tool for distributors, allowing them to better target their marketing efforts by focusing on the needs and wants of specific customer groups. One of the most effective ways to segment customers is by using buying behavior as a criterion. In our survey of the use of targeted marketing in distribution, we found that segmenting based upon buying behavior had the single greatest impact on any benefit of any segmentation method. Distributors were 4.5 times more likely to see increased order profitability and 2.5 times more likely to experience higher order sizes when segmenting based upon buying behavior. In this blog, we’ll explore the benefits of using buying behavior in targeted marketing and discuss how businesses can harness this information to improve their marketing efforts.
An Advanced Technique Made Simple with SMP
Segmenting by buying behavior is a more advanced technique than industry or geographic segmentation. It requires point of sale data and careful analysis to uncover the buying patterns and preferences of customers, enabling companies to deliver highly tailored offers and messages. Studies have shown that this method of segmentation can boost order profitability significantly. Distributors might be worried that this type of segmentation can involve large amounts of data and may require additional resources to implement. Fortunately, SMP makes it easy to leverage buying behavior with easy to use tools and access to distribution sales and marketing expertise. To ensure success, it is important to thoroughly analyze all available data in order to create accurate customer segments. Distributors should also be sure to regularly review their segmentation strategy in order to remain up-to-date with changing consumer trends and buying patterns. With the right approach, segmenting by buying behavior can be a powerful tool for boosting profits.
Personal Offers are Key
Segmenting customers by their buying behavior provides the highest impact on order profitability because it allows distributors to craft personalized offers that are less sensitive to price and target the right customers at the right time. By providing complementary items in these offers, companies can capture more orders with each customer and increase overall profitability. Moreover, when distributors take into account seasonal or other market fluctuations, they can maximize the success of their offers and further increase profitability. Understanding customer buying behavior is key to creating offers that will resonate with them and ultimately drive greater revenue.