Using consumer analytics to predict the best sellers in the cosmetic industryStatistics and TrendsOct 14, 2019
Understanding your customers and keeping up with the latest consumer trends is more important than ever before. If you want to serve your target audience products that sell, you need to know what consumers are talking about and what matters to them. Then, you can predict what they will want more of in the future.
One way that you can more confidently predict what the next big sellers in the cosmetic industry will be, is to listen to your customers, track their behavior, and use that insight to inform your product selection. You can do this through a process called consumer analytics.
What is consumer analytics?
You will most likely already be collecting a powerful amount of data on your customers. This could include preferences and personal data they’ve shared with you, such as preferred ingredients, or hair and skin type. This could also be purchase behavior, such as which products they’ve bought from you in the past, which products they’ve added to their basket, or which items they’ve browsed on your website.
Consumer analytics allows you to harness the power of this data by analyzing it and spotting any patterns. These patterns might indicate which products or ingredients are likely to be popular in the future. For example, if you notice that your customers are increasingly searching for, browsing, or buying vegan products or products with essential oils then these are areas you should be focusing on.
How can I use consumer analytics in my cosmetics business?
Consumer analytics can give you insight into which products will be flying off your (virtual) shelves in months to come. You can also use the data to build more specific customer profiles that help you better position your products.
This includes spending patterns, demographic data such as location and age, and market data such as income patterns. For example, if your data is showing that your customers are increasingly buying higher value products then you could focus on products that fit into this price bracket rather than going for the lower end of the market.
The most important aspect of consumer analytics is to make sure you are listening to your customers, whether that be through analyzing past behavior, reading market reports, or joining the conversations on social media. When you do that you can collect relevant, specific and recent data on what customers want (and don’t want). You can also understand their pain points, their feelings about issues (such as sustainability), and their opinions on products and brands on the market at the moment.
Want to learn more?
Click below to connect with one of the experts at Schwartz Natural Cosmetics. We’ll walk you through our process for wholesale and contract manufacturing. We can even send you samples of our products upon request. Talk to us to learn how you can expand your business operations and gain from over 50 years of experience.
This blog post is for educational purposes only.