With numerous technological advances, the jewellery business has seen innovative breakthroughs in recent years. The fast-evolving customer behaviour and purchasing patterns witnessed in the jewellery industry require brands to adopt proactive strategies and respond to the desired changes. The emergence of analytics has ushered in several transformations and path-breaking advancements that have aided jewellery brands in keeping a competitive edge.
Due to a large and dynamic jewellery landscape, many data points are generated, from sales data to customer preferences, expenditure data to warehouse information, etc. As a result, the jewellery sector leverages data analytics driven by accurate, usable information and data-driven insights to make informed decisions that will increase sales and lower operating expenses, resulting in purchasing assets, enhancing corporate operations, and more.
Here are a few key applications of data analytics in the jewellery industry:
The use of data analytics in the jewellery industry simplifies sales analysis by providing thorough, in-depth and concise insights on product sales. Additionally, it enables jewellery companies to detect hidden trends affecting product sales and allows businesses to reconfigure their operations and inventory. In the digital era, jewellery manufacturers are also utilising data aggregation solutions to collect data from multiple platforms and CRM technologies into data warehouses, where ETL is then conducted to create dashboards that provide actionable insights to boost sales efficiency.
Analytical tools such as BigQuery and Looker Studio can be extremely helpful in understanding a product's popularity and the attribution of a sale, whether it comes from online or retail channels. The data allows the brands to make better decisions about the features to develop and allocate their resources.
KPI (Key performance indicators) Analysis:
KPIs or key performance indicators enable jewellery companies to focus on their objectives and ensure that their efforts and knowledge align with those goals. Hence, determining the appropriate KPIs for any jewellery brand is a customised process that changes and develops over time. Jewellery companies gain greater insight into their KPIs through data analytics across various marketing platforms, such as websites, search engines, emails, and social media. It helps the company to monitor customer sentiment as it is expressed on social media platforms like Facebook and Instagram to spot trends and resolve problems before they worsen and negatively affect user experiences. As a result, it allows businesses to track the effectiveness of their plans and actions in real time.
Implementing data analytics to optimise inventory can help balance the supply and demand disparity. It also allows jewellery companies to monitor product stock levels and demand in real time, preventing stock-outs and overproductions. Additionally, restocking goods can also be automated by tracking the inventory.
Jewellery companies use machine learning-based services like Vision API Product Search and Recommendations AI more frequently to expand and improve their customer service offerings. It enables clients to approach businesses for customised jewellery. For example, customers, for instance, can upload images of their unique jewellery design to a dedicated picture-sharing website. Brands may either develop a piece just for them or present their closest match using picture recognition and keywords.
Customer profiling has always been an essential component of sales and marketing channels. Using data analytics, jewellery companies study retail and online consumers based on interactions, buying patterns, purchasing preferences, etc. The jewellers can better comprehend client behaviour, consistency, and engagement metrics. Irrespective of how many client profiles a jewellery business is dealing with, using predictive analysis enables them to tailor the customer experience to the smallest detail. For instance, the Recency, Frequency, and Monetary analysis may reveal if a buyer is still committed to the brand, how enthusiastic they are about the jewellery products, and how much money they are ready to invest.
The outcomes that data analytics technologies produce for jewellery firms worldwide are astounding. Customer service is becoming increasingly tailored, making a significant quantity of data based on interaction, activity, and evaluations of consumers available for collection and analysis. These data allow jewellery companies to aggregate, discover, interpret, and examine company data in various forms for previously unheard-of industry insights. Hence, data analytics equips the jewellery industry to stop speculating and start understanding what is effective for a glittering future.
The article has been written by Rupesh Jain, Founder & CEO of Candere by Kalyan Jewellers