If you want your business to grow, you will need to focus on building a positive customer experience (CX). Why? Providing a positive CX can directly increase your revenue in 2-3 years. A survey asked 1,920 business professionals to share their number one priority for the next 5 years. Creating a positive customer experience came in first, beating product and pricing.
The reason for this increased focus on CX is simply that customer loyalty is no longer determined by better pricing or products alone. Customer demands and expectations have shifted over the years. Businesses that fail to offer a high customer experience risk losing customers to competitors.
Providing a positive CX involves multiple facets and functions of a business. Having the products your customers want in stock is the foundation to improving or providing a higher level of CX.
The Foundation of a Positive Customer Experience
In the past, customers had to call or visit businesses in order to learn what products were in stock. Customers today expect online purchasing and ordering options. Although there are challenges, this has created exciting opportunities for businesses.
For instance, customers today shop in different ways and across various channels. Having more than one way for customers to browse your inventory means you need to have the right products in stock in all your locations. If you are consistently out of stock for high-demand items, or if you are not showing accurate information, you risk losing sales.
In-stock percentage is very important. However, businesses need to pay close attention to the variety and selection of products. If your assortment isn’t aligned with customer demand, your in-stock percentage will be less important because you won’t have the right products on-hand. No matter which outlet a customer chooses to shop, having the items they need at the fulfillment location is essential to fostering a good customer experience.
An assortment solution is critical to managing inventory to ensure you have the products that your customers actually want regardless of the channel they are using to interact with your business.
Finding the Right Assortment
Identifying the right assortment of products is challenging for even the most experienced businesses. That’s because it is hard to see or decipher patterns in historical sales data with traditional forecasting methods. These methods tend to rely on basic calculations and analytics, which require businesses to rely on intuition. The problem here is guesswork and intuition open the door to a wider margin of error. When every dollar counts, ordering the wrong assortment of products is a costly mistake you need to avoid. You can avoid this with the right inventory assortment solution.
This challenge becomes even more difficult with each location you add to your chain. Ideally, each location should have a unique assortment for its specific customer demographics. However, this is a costly endeavor. Instead, businesses should use clustering to group similar locations together. Then, each group of locations can have a unique assortment. This drastically reduces logistics and other costs.
Start Reviving the CX Now
Fortunately, reviving your customer experience doesn’t have to be guesswork. 4R’s Assortment Optimization solution and 4R Navigator service can analyze and predict the exact number of SKUs for each store cluster or location. Powered by machine learning and AI, 4R’s solutions can help you plan orders and know which products to carry and how much inventory should be on-hand. Reviving your customer experience starts here. Contact us today at firstname.lastname@example.org to learn more.