It’s easier than ever for a brand to take its products online and sell to a global market. The Fashion and Apparel Industry Report further proves it by stating that the worldwide revenue of the industry is slated to rise from $481.2 billion in 2018 to $712.9 billion by 2022.
The report also states that fashion consumers between 16 to 24 and 25 to 34 age groups will also have more buying more. The potential customer base for brands in the industry is projected to grow to more than 1.2 billion by 2020.
While that’s good news for brands planning to set shop online, here’s the underlying bad news:
- Increase in competition for consumer attention
- Decrease in brand loyalty
- High online return rates (almost 50%)
- Pressure to keep up with changing trends
What makes everything worse is:
- Pace at which market trends change in the fashion industry
- Increase in cost per customer acquisition via social media
- Increase in competition on search
Now you can’t avoid running promotional campaigns on social media, search or email. That’s how you’ll bring your products, discounts and deals to the consumer’s attention.
But how do you make sure you don’t end up overspending on a channel that isn’t bringing you actual sales?
Or stocking up on products that are not going to sell?
Keeping up with trends through news and magazines is one thing. But how are you making sure those trends are up-to-date and timely?
We’re not saying you should be freaked out by the competition. We’re just saying that’s it’s time to go beyond generic targeting and use all your data to get a competitive advantage!
Putting eCommerce analytics at work to increase sales
1. Identify the types of fashion consumers your store gets
No two shoppers are the same, especially in the fashion industry. While one could be simply exploring trending products, the other could be looking for a limited-edition accessory to flaunt on their Instagram account.
Dig into your data to understand the shoppers reaching your store. See how they’re interacting with your store, the products they are showing interest in, how frequently are they coming back to explore your offerings, the purchase they have made and more. Go beyond the generic demographics of age, gender and location to truly identify who your customers are.
With Shopify analytics apps like RevTap, you get an in-depth overview of every customer. But more importantly, the app pulls together this information from all your customers to identify common patterns and create unique customer segments based on their behaviour.
For instance, it lists all the customers who were looking for deals and converted on them, under price-sensitive customers. Similarly, it categorises shoppers who tend to abandon products frequently, under cart abandoners and more.
Action: Use these customer segments to understand what motivates the different shoppers landing on your store. This will help you personalize your marketing campaigns better to drive more traffic from the desired segment.
2. Identify your best-performing product range and highlight them
Trends in the fashion industry are always changing and every consumer out there is following a different trend. But most fall in the grey area, making certain product ranges work better than the others. That’s why it’s important to continually analyze which of your products are performing the best and keep them highlighted on the store.
And this needs to be done continually when we’re talking fashion!
For this, you’ll need to dig into product analytics and track the performance of all the products you’re selling. Typically, this will require you dig into your store data and Google Analytics, creating an excel of the inventory sold for each product, the revenue generated, returns and refunds and more.
Or you could use an eCommerce analytics app like RevTap again to create product segments. The app pulls in data from your store and Google Analytics and creates these segments based on their performance over time.
So you get a list of your trending, best-selling, most profitable, most refunded and more products. Get a clear view of the revenue each product is generating for your store and what’s the most profitable while promoting.
Action: Use these product segments to identify which products to highlight on your home page as a collection, which to allot more promotion/ advertising budget to and which to push out as ‘featured products’ in your email marketing campaign.
Let data help you keep up with fashion trends to drive more sales!
Also read: If you’re planning out your marketing and advertising campaigns, we recommend you read these posts –
- Email marketing best practices for higher CTR to increase Shopify sales
- 10 Facebook ad examples for your next ad campaign to increase Shopify sales
3. Single out the low-selling products and strategize promotions
The problem with the fashion industry is that as soon as a trend ends, there’s a sudden drop in the sales of certain products.
It’s not like the trend goes out of fashion completely. Consumers just stop seeing as much value in them.
So instead of having to maintain an under-selling inventory of products, use product analytics to identify these items in a timely manner. If you’ve created product segments already (refer point above), you will already have this list of products. Put that data to use immediately to sell them before they fizzle out of the fashion trends completely!
Action: Put these products on sale or create bundles with your best-selling products. Promote your offer via social media campaigns, search ads, a targeted email for price-sensitive customers or even a contest. Some of the best upsell, cross-sell and bundle campaigns come out of data.
The idea is to get these products noticed again with their new price and sell them. Remember to plan your inventory around these products carefully as soon as you notice a drop in their sales!
4. Learn which channels are driving in the fashion enthusiasts and actual sales
You have been running promotional campaigns for a while now. While you’re trying to cover all the possible channels your target consumers are on, not all convert on the same level. Some channels are only effective at driving traffic to your store. While some others could actually be driving shoppers with high purchase intent.
Either way, it’s important for you to learn which channel is bringing you traffic and which results in actual sales. This is where you need to dig into performance analytics – all your marketing across social media, search engine and email marketing.
But go beyond the open rate and click-through rate or the reach of your campaigns. Use apps like RevTap to see how much you’ve spent on each channel and how much revenue that has generated for you.
Action: Use performance analytics which marketing channel gets you more sales and which one is good for simply creating a buzz around your brand. Double down your efforts and optimize your budgets for the channel that has been getting you high returns.
On the flip side, also take a look at the low-performing channels. Try to identify what hasn’t been working for those campaigns, use product and customer segments to optimize these too for higher conversions.
5. Understand how fashion consumers prefer to checkout
Ever looked at a trending Instagram post and immediately made a search for a similar product? Yes, that’s the millennial consumer for you.
The fear of missing out on fashion trends is so high today that most will immediately want to purchase a product their favourite celebrity or influencer is endorsing or wearing. They don’t just want to be one of the firsts to don the trend, but also be able to do it quickly – that’s where your checkout process comes in.
Use your store data and Google Analytics to see how shoppers who add products to their cart move towards checkout. Take note of the elements/ call-outs they’re interacting with and your cart abandonment rate at every step of checkout. A Shopify analytics app will also help you see how your checkout is performing.
A fashion-sensitive shopper seeking to make a quick purchase would want to checkout as soon as possible. If your process is too long, you’re going to see a high cart abandonment rate.
Action: Use your checkout performance data to optimize or simplify the process for a consumer to make a purchase. The easier and lesser the steps, the higher is your conversion rate.
Do you need a Shopify analytics app?
Agreed that Shopify offers you enough data to understand how your store is fairing. But what about your customer data that is scattered across all those marketing tools? And what about the performance data of all those marketing campaigns to promote your products?
Well, we created an extensive eCommerce Analytics Masterclass for all those who are getting started with data. You can check it out here.
But what we learned from stores doing it all manually is that data can get really overwhelming – really fast! And there’s always a probability of missing out on critical information switching between apps. That’s why we say Google Analytics and Shopify Analytics aren’t enough to understand your customers and product performance. Read all about it here!
So whether you’ve just set up your Shopify store or are making hundreds or thousands of sales per month, you need an analytics app to make sure you’re not losing important data. But more importantly, to put that data to use in an industry that’s turning more competitive by the minute.
Ready to supercharge your fashion brand before a competitor does?
Get started with RevTap for free.