Any good retailer knows from its product sales what its customers’ buy and equally what seems to be impossible to sell to them, but why? Do you know why?
Is it simply the wrong product, or perhaps something more subtle in the colour, the size, the style or the taste, or simply something as obvious as the price point? Proper analysis of sales figures combined with benchmarking of competitor assortments holds the key to unlocking further the potential spending of our customers.
Through identifying the hierarchy of importance for product design elements and features a retailer can design and buy assortments with investment of time and money that will translate to sales and margins.
Failure to recognise the correct relative importance of product design features can result in wasted investment in enhancements that add no value to the product or its realised margin.
- how do I find out which benefits and attributes of a product are most important?
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with what priorities do my customers view product enhancements and adornments?
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what qualities of my products add the most value from my customers’ perspective?
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what product design features offer the best ROI in terms of realised margin?
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What is the correct product design hierarchy for each of my product categories?
This is how we help… Product added-value attributes analysis
“Which design features, enhancements and adornments to my product assortment add value and drive my sales & profit?”
Overview:
A focussed analysis of best seller and worst seller design attributes for specific categories and ranges
- analysis of shape, size, colour, design features, quality, safety, comfort, adornment and pattern as reasons to buy or not to buy
- bestseller and worst seller reviews
- ranking and prioritisation of attributes – “Attribute Index”
- cumulative analysis and cross-referencing of sales against “attribute Index!” of individual products and ranges
- Creation of design hierarchies enabling focus on most important product attributes in the correct order
- relationship between “Attribute Index” and price tolerance of customers
- comparison with competitor product attributes against pricing
Benefits:
- Identify in priority order the most important product attribute from a customers’ perspective and to build these into the design process for new product assortment
- focus on product design additions that only relate to increased ROI
- removal of design attributes that reduce the added-value of the product
- ability to relate the added-value attributes to an appropriate added-value price points
- ability to add margin through inclusion of appropriate added-value product attributes
- ability to deliver higher comparative value on categories and ranges than competitors
- deliver store displays and best sellers presentation based on “showcasing” products with high “Attribute Index!”
Process:
- Interviews with HQ and buying & merchandising team
- Focus groups of customers identifying attributes of best sellers and worst sellers
- KPI analysis by department, category and sku
- Best seller and worst seller product reviews focused on adornment
- Best practice analysis of product enhancement against pricing
Aggressive actions (from a potentially long list):
- allocate an “Attribute Index!” to all products
- communicate to customers strongly products with the most important attributes
- store displays which show off important attributes
- increase price and margin for products high in the “Attributes Index”
- reduce prices for products with a low “Attributes Index!”
Check out more of our series of “audits, analysis, answers & aggressive actions”
Please get in touch. We’ll be happy to help & advise…
+44 (0)7967 609849
tim.radley@vm-unleashed.com