Insight Overview:
Seek’s Product Substitutability insight leverages millions of transactions from Loyalty data to help companies better understand product preferences and the purchase behavior of consumers. By analyzing the factors that influence product switching, such as share of wallet and exclusivity, brands can identify opportunities to attract new customers, retain existing customers, and increase market share.
Insight Benefits:
- Develop targeted marketing campaigns: Based on the insights gained from the product substitutability data, marketers can develop targeted campaigns that highlight the unique features and benefits of their products.
- Offer incentives and promotions: By offering cashback incentives and other promotions, brands can encourage customers to try their products and reduce the risk of switching to a competing brand. For example, offering a discount or cashback incentive for purchasing a product can help retain customers and reduce the likelihood of product substitution
- Improve product quality and features: By analyzing the reasons why customers switch products, brands can identify areas for improvement in their products.
- Monitor competitor activity: By analyzing product substitutability data over time, brands can monitor competitor activity and identify changes in consumer behavior. This can help brands develop strategies to counteract the competition and retain customers.
Key Metrics:
- Substitutability: Percent of purchases made not for your brand of customers who do buy your band (which indicates a substitution). The lower the substitutability the more exclusive customers you have.
- Substitutability Rank: Product ranking based on substitutability score
- Share of Wallet: Percentage of wallet for your product within the category
- Dollar Sales: Dollar sales for your product
- Unit Sales: Unit sales for your product
- Purchases: Purchases for your product
- Customer Demographics: Understanding your different customer groupings
Actions You Can Take:
- Identify target segments: Use the product substitutability insight to identify specific customer segments or market niches that perceive your product as a strong substitute for alternatives. Focus your marketing efforts on these segments, tailoring your messaging and positioning to highlight the unique advantages your product offers over substitutes.
- Competitive analysis: Leverage the product substitutability insight to conduct a comprehensive analysis of competing products or services. Identify their strengths and weaknesses compared to your offering and identify areas where you can differentiate and outperform them. This analysis can help you refine your marketing strategy and product development efforts.