Marilynn K. Yee/The New York Times “We can only offer a limited number of wines,” said Kim Kooren,owner of Velvet Palate. “So we offer choices that are geared toward their preferences.”
Today’s Question
What small-business owners think.
A small-business guide we’ve just published highlights a Web site, Velvet Palate, that sells artisanal wines that are made in small quantities around the world and typically not stocked in stores. Written by Julie Weed, the guide explains how Kim Kooren, co-founder of Velvet Palate, is employing sophisticated data collection and analysis to improve sales of those wines.
Before starting Velvet Palate in January, Ms. Kooren worked for an online media company that analyzed how effectively subscription offers and other marketing tools attracted new customers. Velvet Palate’s e-commerce software, Magento Enterprise, tracks sales, of course, but it also identifies tiers of customers, including those who have bought repeatedly, those who have bought once but not returned, and those who have visited the Web site but not made any purchases. This allows Ms. Kooren to pursue the groups in different ways. To entice one-time buyers to return, for example, she might offer free shipping for a limited time. “I try different ideas and see what kind of response I get,” she said.
This kind of analysis can increase sales, according to Peter Fader, a professor of marketing at the University of Pennsylvania’s Wharton School, because it allows companies to aim their offerings and even to design products to meet the needs of their customers. By observing past behaviors, businesses can more accurately predict which customers will visit again, what products will interest them and which special offers will appeal to them.
Which data-analysis tools have you tried? Have they worked?
Article source: http://boss.blogs.nytimes.com/2012/12/12/how-are-you-using-data-analysis-to-improve-sales/?partner=rss&emc=rss
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