At OSP, we live by the motto, “Data Is King.” Both online and traditional retail environments are brimming with data, but the real challenge lies in harnessing it effectively.
While a brick-and-mortar retailer can’t update their Point of Sale system every time a customer walks through the door, online retailers possess the advantage of immediate data capture when a customer clicks on their website. Online retailers heavily rely on data to tailor consumer-specific advertising, social media strategies, and overall marketing efforts. In traditional retail, however, we replicate localized customer needs on store shelves by leveraging past sales data, employing clustering techniques, and building a retail range based on the insights gained.
But what exactly is clustering?
To grasp the concept of clustering, we must underscore the importance of “Being Local”. We believe this is a pivotal focus in today’s retail landscape, where retailers zero in on the core needs of specific consumer groups, enabling them to stock relevant product ranges and reduce waste.
At OSP, we employ clustering solutions to uncover purchasing patterns. Our consultants utilize metrics such as Cohesion, Separation, and the number of stores within a cluster to develop up to twenty-five cluster schemes. The solution goes through multiple iterations to identify the most accurate, top-ranked cluster scheme.
The crux of clustering lies in effectively applying our analysis to index sub-categories, sectors, and product assortments. Once the results are obtained, we assist retailers in pinpointing the right product range for each store cluster, thereby maximizing profitability.
We understand that your buying team has to consider various factors, such as brand agreements, customer flow, equipment specifications, promotional sections, and accommodating local, regional, and international products. Our mission is to help you achieve the highest profit potential while minimizing product waste – a win-win for both your head office and the environment.
With a wealth of experience spanning diverse retail sectors, OSP offers a fresh perspective and helps you unlock the full potential of your sales data by staying truly “local”.