Industries >Online Distribution
Identify Complementary Products
As consumers, we tend to think of online retailers simply as extensions of traditional brick and mortar stores. But from an operational perspective, they are completely different types of businesses. While a brick and mortar retailer deals with limited shelf space and physical constraints, an online retailer is really a distributor of products, rather than a retailer. As such the online distributor has different challenges and opportunities than the traditional brick and mortar store has. The biggest opportunities and the biggest challenges both revolve around the sheer number of products the distributor can or does have.
Amazon, the most idealized model of a distributor, has perfected the “if you like(d) this product, you’ll probably like this product.” It might seem a simple proposition: a customer who purchased a lamp, might also have a need to purchase lightbulbs that fit that lamp. Therein lies the challenge: how does a distributor determine which lightbulbs that it sells are the most profitable, have the lowest return rate, have the highest customer satisfaction rate, and have the lowest breakage rate while shipping? Oh, and which of those lightbulbs also fit that lamp.
A national retail distributor wanted to get to answers like that. But it wanted to do so in an easy-to-manage way. So it started with a simple question: what are the complementary products to our 100 top-selling SKUs? The distributor can ask BULLSEYE™ to answer that question.
BULLSEYE works with four areas of company data: its customer list, its list of products, the list of customers’ purchases, and marketing events. This encompasses invoice records, order histories, product catalogs with pricing information and hierarchies, CRM events and interactions, emails opened, ads clicked, data from CXA and Omniture and more.
It can easily connect to this data in the cloud, with new details flowing into BULLSEYE on a daily or weekly basis, depending on the specific need. BULLSEYE analyzes this data, and easily generates a list of the complementary products to the 100 top-selling products.
BULLSEYE does not require months of designing and developing a custom application. Instead, this cloud-based application simply needs to access a company’s existing data and analyze it. BULLSEYE also continuously learns from the data.
Marketing executives and senior management can analyze which complementary products sell best with its top 100 SKUs, create complementary marketing campaigns for products, serve up product-related ads in real-time marketing those complementary products, and increase the distributor’s overall revenue associated with its best-sellers.
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