Currently our customers demand a personalized attention, wishing a basket totally attached to their habits and preferences as a consumer.
This provides an opportunity for companies to identify which items are truly profitable and successful for each customer, based on their profiles and historical sales behavior.
Let's make a business case where the only information available at the moment is the sales history of your customers, being a scenario for a specific territory that serves 10,000 customers, and let's consider only the following data:
Now, you have a business intelligence platform with the ability to analyze sales, in such a way that allows you to offer each customer, those products that currently do not sell, but should have in their portfolio or basket of products, because there is a high probability of purchase in these products found for him.
In this way, we establish the products that complement their portfolio for each of the 10,000 clients. Now each retailer will be able to satisfy the demands of its consumers, achieving a growth in their sales
Let's see what it would be like for a financier to apply the benefit of just one additional product in the client's portfolio or basket of products, over the universe of 10,000 Clients.
Consider an average price of $100.00 per unit and imagine that only 50% of the universe (5,000 customers) accepts a unit of the recommended product in their first purchase:
Initially, we get the additional income benefit of $500,000 on your first visit.
Now let's suppose, that of the previous customers, only 50% buy in a second visit (2,500 customers), because the new product started to sell:
In just 2 visits, we get a profit of $750,000, and consumers also find your product available.
And finally, let's assume that of those 2,500 customers, only 20% acquire the product within their portfolio or sales basket (500 customers), which provides a profit in:
The additional annual revenue is over 18 million, only adding ONE product, with ONE sales item, to 5% of total customers.
Imagine that it could be more than one product or more than one sales unit or more customers, or all combinations, the revenue would potentially increase.
In addition, there are qualitative benefits of long-term impact, such as: