When purchasing from a supplier, many webshop owners rely on their gut feeling rather than data. Of course, experience is an important tool that already works to a certain degree when reaching our goals. However, data-informed decisions will always get us through the final stretch.
You can effortlessly improve your decision-making process by using Clerk’s Customer Analytics. The tool lets you easily identify the best performing product segments from each supplier based on performance metrics in terms of lifetime value, yearly revenue and average order value. Essentially, it gives you clear insights into which products to focus your attention on to achieve higher profits with no extra effort!
The advantages of using Customer Analytics are twofold: Firstly, it highlights the most important aspects to consider when negotiating with your suppliers and secondly, you can easily understand where to allocate your marketing resources to get the best returns.
Find more profitable product groups with Clerk
Create Audiences of customers interested in the different product groups
With Clerk’s Audience, you can group customers who are interested in a particular product, from a given supplier into its own Audience. This lets you gain a simple overview of its performance as well as the ability to compare its performance against other Audiences.
Aside from segmenting and comparing audiences, our most advanced and unique feature in our Audience tool also lets you find potential buyers for specific products.
Clerk does this by tracking the customer’s activity, including click paths and page views while they browse, as well as search and order history. The combined information is presented in a data model that identifies what your customers will be interested in buying, even if they have not bought anything like it yet.
In the examples below, we have created an Audience for customers interested in the product “Hoodie” from the supplier “Awesome Clothes'', and a second one of customers interested in the product “Hat” from the same supplier.
Clerk’s Audience - Customers interested in “Hoodie” from the supplier “Awesome Clothes”
Clerk’s Audience - Customers interested in “Hat” from the supplier “Awesome Clothes”
Find the most profitable Audiences with Clerk’s Customer Analytics
Clerk’s Customer Analytics provides many useful metrics for each Audience you create.
In our example, the Audience for customers interested in the product “Hoodie” from the supplier “Awesome Clothes' provides a lifetime value that is 23% lower than the average of all customers and the average order value is 41% lower when compared to the overall average value of customers.
Conversely, the revenue per year is much higher than the average - 139% more!
Clerk’s Customer Analytics - Customers interested in “Hoodie” from the supplier “Awesome Clothes”
The same analysis can be performed on the second Audience created in our example:
Clerk’s Customer Analytics - Customers interested in “Hat” from the supplier “Awesome Clothes”
With just a few clicks, you will be able to find the most profitable product groups!
Simply, repeat the process for all the main product groups sourced from each particular supplier.
Ideally, you can use this analysis to buy more of the products that are associated with high-performing Audience segments. The data you collect from Clerk’s Customer Analytics will support your decisions and you will be able to optimize your purchasing spend on the most valuable products and customers.
Want to learn more about how to easily improve your conversion rate?