Today, we operate in an increasingly data-driven economy. Businesses, because of intense competition and pressure on their margins, are desperate for more precise growth strategies. They want to identify and engage with only their most profitable audiences, which is why they’re turning to data.
Data and Fashion
Naturally, data-driven growth is also being adopted by the fashion industry. In fact, many of the biggest players have been using data extensively for quite some time now. From big box shops, like H&M and Urban Outfitters, to haute couture and high fashion brands, many prominent companies in the fashion industry have developed strong data-driven growth strategies that have increased their knowledge of their customers and the market as a whole.
A great example of a company that has successfully used a data-driven growth strategy is Louis Vuitton. The French fashion house gathered data from customers and used it to refine their brand strategy and product lines. In fact, Louis Vuitton even went as far as using data to develop their creative direction. When you consider that creative direction has traditionally been done almost exclusively by designers and experts, it speaks volumes about the power of data and the many ways it can be used for growth.
So what are the benefits of data for fashion brands? One is that it enables businesses to target their best-performing audiences while decreasing losses and maximizing returns. Online, data can be used in very specific ways, such as allowing even the most junior digital marketer to create marketing campaigns that appeal to high-return audiences as well as ones that attract new customers. Even in the context of remarketing, data lets a marketing team execute campaigns with personalized offers based on how users have engaged with their site over time.
Data can also help fashion brands make predictions. Using data, e-commerce companies can predict which products are likely perform better over the next two weeks and which customers are likely to remain loyal and make purchases in the next 30 days. Beyond identifying trending products and big spenders, data can even be used to increase customer engagement on websites and bring potential customers back into the sales funnel.
Almost Anyone Can Use It
These days there really isn’t a serious fashion brand that doesn’t work with data. It is so critical for developing and implementing growth strategies. However, collecting, storing and analysing data properly can be very challenging and even one mistake can be very costly.
Fortunately, technological advancements such as AI and machine learning are making it easier and more affordable to use data for growth. This means innovative applications and tools for data are no longer just for the big dogs. Even small to medium-sized businesses can reap the benefits of data and use it for optimization and growth.