By Thomas Hill
Range optimization is one of the most important decisions for retailers in the digital age. The changing physical environment is a key driver in the need for intelligent range planning. Shrinking physical footprints require range reduction and optimization in store, whilst supplier integration online requires merchandising capability to personalize the ever growing assortment to the individual. For more insights, read our previous blog post: Range or die – how to survive the retail revolution).
Kx recently conducted a Retail Innovation Index (RII) survey of 5,000 UK consumers to see how technical innovations impact how customers perceive retailers. The Kx RII reveals that consumers are expecting personalized choices. Our study shows that those major high street retailers that realize this, and continue to innovate around range personalization, will be recognized by consumers for their efforts to create winning customer experiences. (Download the full report to read more: 2018 Kx Retail Innovation Index).
Our RII report looks at how Amazon continues to dominate the retail market today for one simple reason, the intelligent use of data. Amazon’s customer-centric vision uses state-of-the-art online range optimization strategies. Furthermore, our research shows that range and ease of choice are among the top five most important innovation drivers for consumers. Range personalization is key to the customer journey at every point.
The Kx for Retail range optimization platform is one way retailers are looking to drive effective, customer-focused innovation. Powerful range optimization tools built with Kx technology deliver customer decision trees and actionable insights using sophisticated basket analytics. Our product loyalty, affinity and substitutability measures empower retailers and merchants through:
- Customer-centric range decisions, by converting vast data volumes into simple and actionable outputs.
- Intelligent range reduction and edited choice in-store solutions, creating more cost effective operations.
- Targeting online ranges to meet individual consumer needs through hyper-merchandised websites, delivered in real-time.
To find out more visit us at https://kx.com/solutions/retail/range-optimization