Target Market Segmentation In Retail

Some consumers are exploiting returns policies. It's a reality that retailers face every day, which erodes margins in a tough environment. Our research with ZigZag Global takes a deep dive into some of the tactics consumers are using to game the system. ➡️ The Opportunist – 20% say they offer to return an item, but if the retailer does not request it back - they resell it. ➡️ The Cashback Hustler – 18% use cashback or credit card perks, then return the items but keep the rewards. ➡️ The Over-Spender – 17% overspend to unlock free delivery or discounts, only to return the excess. ➡️ The Price Hacker – 15% send items back, then re-buy them when promotions kick in. ➡️ The Temporary Owner – 11% buy something, use it once, and return it — from high-end tech to occasionwear. I was genuinely shocked to see how prevalent this behaviour is. And while returns have always been a cost of doing business, what we’re seeing now is something else - intentional returns gaming. Many retailers are still applying broad-brush policies that fail to distinguish between high-value, profitable customers and those actively gaming the system. A more nuanced approach is needed, driven by data. 🔍 Profile-based returns – One-size-fits-all policies are too blunt and can penalise some profitable customers. Segment by behaviour and profitability. 📊 Use your data – Identify patterns, flag serial returners, and adjust thresholds dynamically. 🧠 Make returns part of the value equation – Returns affect inventory, customer lifetime value, and are at the heart of profitability. 🎯 Incentivise "good" behaviour – Reward reliable behaviour. Build loyalty around profitability, not volume. The retailers who get this right will be the ones who keep customers and their margins. 📥 Read the full report produced in partnership with ZigZag Global here https://lnkd.in/e3K3dQWx   #Retail #Ecommerce #Returns #RetailTrends #CustomerExperience #ReverseLogistics 

I walked into Miniso just to browse, but a tiny design detail caught my attention I reached for a perfume tester, expecting to spray it on my wrist. But there was no push-button. Just an open nozzle, forcing me to bring it close and take a sniff. Observations: 🛍️ Smart Product Placement: Perfumes were neatly arranged in visually appealing color blocks, making selection feel intuitive. 👃 Tester Trick: The tester bottles had no push-button sprays! Instead, customers had to directly sniff the nozzle—reducing impulse spraying by passersby and ensuring serious buyers engage more deeply. 👉 Behavioral Science in Action: 📌 Commitment Bias: If you take the effort to pick up and sniff, you're more likely to consider buying. 📌Scarcity Effect: No free-flowing spray means the product feels more 'exclusive.' 📌Decision Fatigue Reduction: Minimal distractions, clear choices, and a structured layout make buying easier. Retailers are getting smarter—it's not just about WHAT they sell but HOW they sell it. Have you noticed any clever behavioral tactics in stores lately? #BehavioralScience #RetailPsychology #ConsumerBehavior #MarketingStrategy #BrandExperience 

Inflation isn’t just an economic challenge—it’s a test of agility for businesses. As costs rise and purchasing power shifts, companies that rely on gut instinct risk falling behind. The real winners? Those who use data-driven insights to navigate uncertainty. 1️⃣ Understanding Consumer Behavior: What’s Changing? Inflation reshapes spending habits. Some consumers trade down to budget-friendly options, while others delay non-essential purchases. Businesses must analyze: 🔹 Spending patterns: Are customers shifting to smaller pack sizes or private labels? 🔹 Channel preferences: Is there a surge in online shopping due to better deals? 🔹 Regional variations: Inflation doesn’t hit all demographics equally—hyperlocal data matters. 📊 Example: A retail chain used real-time sales data to spot a shift toward economy brands, allowing it to adjust promotions and retain price-sensitive customers. 2️⃣ Pricing Trends: Data-Backed Decision-Making Raising prices isn’t the only response to inflation. Smart pricing strategies, backed by AI and analytics, can help businesses optimize margins without losing customers. 🔹 Dynamic pricing models: Adjust prices based on demand, competitor moves, and seasonality. 🔹 Price elasticity analysis: Determine how much a price hike impacts sales before making a move. 🔹 Personalized discounts: Use customer data to offer targeted promotions that drive loyalty. 📈 Example: An e-commerce platform analyzed customer behavior and found that small, frequent discounts led to better retention than infrequent deep discounts. 3️⃣ Demand Forecasting & Inventory Optimization Stocking the right products at the right time is critical in an inflationary market. Predictive analytics can help businesses: 🔹 Anticipate demand surges—especially in essential goods. 🔹 Optimize supply chains to reduce excess inventory and prevent stockouts. 🔹 Reduce waste in perishable categories like F&B, where price-sensitive demand fluctuates. 📦 Example: A leading FMCG brand leveraged AI-driven demand forecasting to prevent overstocking of premium products while ensuring budget-friendly variants were always available. 💡 The Takeaway Inflation isn’t just about rising costs—it’s about shifting consumer priorities. Companies that embrace data-driven decision-making can optimize pricing, fine-tune inventory, and strengthen customer loyalty. 𝑯𝒐𝒘 𝒊𝒔 𝒚𝒐𝒖𝒓 𝒃𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝒂𝒅𝒂𝒑𝒕𝒊𝒏𝒈 𝒕𝒐 𝒊𝒏𝒇𝒍𝒂𝒕𝒊𝒐𝒏𝒂𝒓𝒚 𝒑𝒓𝒆𝒔𝒔𝒖𝒓𝒆𝒔? 𝑨𝒓𝒆 𝒚𝒐𝒖 𝒖𝒔𝒊𝒏𝒈 𝒅𝒂𝒕𝒂 𝒕𝒐 𝒓𝒆𝒇𝒊𝒏𝒆 𝒚𝒐𝒖𝒓 𝒔𝒕𝒓𝒂𝒕𝒆𝒈𝒚? 𝑳𝒆𝒕’𝒔 𝒅𝒊𝒔𝒄𝒖𝒔𝒔 𝒊𝒏 𝒕𝒉𝒆 𝒄𝒐𝒎𝒎𝒆𝒏𝒕𝒔! #datadrivendecisionmaking #dataanalytics #inflation #inventoryoptimization #demandforecasting #pricingtrends

The recent HT Mint article on Cultfit's gym closures, reveals a recurring theme: even the biggest fitness brands are struggling to keep their spaces full and their members loyal. The piece points out how Cultfit’s model—centered around trainer-led, workout-focused classes—hasn’t translated into sustainable growth, especially as consumer needs evolve. Here’s the nuance: Cultfit put its trainers and workout programs at the heart of its strategy, not the customer’s broader lifestyle. You sign up for a class, maybe a few, but you’re not signing up for a holistic lifestyle system that supports you beyond the gym floor. This approach can be limiting. People don’t just want a workout—they want a routine that fits their life, supports their health goals, and adapts as they do. Imagine if we flipped the script. What if, instead of just offering a menu of workouts, gyms designed programs that fit into different lifestyles for different customer segments? Early mornings could be for seniors focusing on mobility and social connection. Mid-mornings could serve homemakers or new moms with wellness routines that include nutrition and stress management. Afternoons might attract students with energy-boosting group classes and peer support. Evenings could remain the domain of working professionals looking for efficient, guided routines that help them unwind and recharge. By redefining customer segments and building lifestyle-centric programs, gyms could see better utilization all day long—not just during peak hours. More importantly, members would feel seen and supported, making them more likely to stick around. The Cultfit story reinforces a larger truth that I've seen throughout my career: putting the customer at the center of the business generates sustainable growth. Who do you think your business could serve if you went beyond segmenting prospects by revenues or business maturity and considered their culture, aspirations and business style? #BusinessStrategy #CustomerCentricity #GrowthConsulting #Unlock growth cult fit

The consumer who asked for more Change is the only constant in a VUCA world. That with changing times, consumers’ purchase behaviour too evolve is a known fact. However, what if consumer behaviour seems to be witnessing change in two opposite directions - at the same time!! A few years ago, McKinsey had highlighted an interesting and paradoxical consumer behaviour taking shape. Consumers are living in a world of ‘ands’. A phrase used to describe the contradictory shopping behaviours of people across the globe. As explained by McKinsey, “Consumers don’t want one thing or another. They want both, but in different ways.” Here are some behavioural patterns being shaped by consumers preference for ‘ands’ Trading down and splurging selectively: Consumers are both flocking to value and buying premium products and services.  Shoppers who splurge in some categories may seek value in others. Finding comfort in familiarity and brand experimentation: While big and established brands emerge as tried and tested choice for consumers during uncertain times, they are also trying new brands. Additionally, consumers are now purchasing a repertoire of products to fill specific needs, instead of purchasing just one product. Demanding sustainability and affordability: Consumers are gravitating towards sustainable products but are also not willing to pay a premium for sustainable products in times of inflation. Maybe the real question isn't whether consumers are becoming more contradictory. But whether brands are becoming flexible enough to serve those contradictions. #MarketerDiaries #ConsumerInsight Link to the article: https://lnkd.in/gws4P7Ze

Are you struggling to identify who your customer is? Here are 5 tried & and tested ways that I've helped small business owners that work. 1. Market Research and Analysis: Conduct comprehensive market research to understand consumer behaviours, preferences, demographics, and purchasing patterns. Use surveys, interviews, and data analytics to gather insights into who is buying your products, why they are buying them, and what drives their purchasing decisions. 2. Create Customer Personas: Develop detailed customer personas that represent different segments of your target audience. These personas should include demographic information (age, gender, income), psychographic details (lifestyle, values, interests), and buying behaviour (preferences, needs, challenges). This helps in visualising and understanding your customers better. 3. Track and Analyse Sales Data: Utilise sales data and analytics tools to track and analyse customer buying behaviour. Look for patterns in purchasing frequency, preferred products, average order value, and the channels through which they make purchases (in-store, online, mobile). 4. Engage with Customers: Interact with your customers through various channels—social media, surveys, feedback forms, or direct communication—to gather their opinions, preferences, and feedback. Engaging with them helps in understanding their needs, pain points, and desires better. 5. Competitor Analysis: Analyse your competitors' customer base. Understand who their target customers are and what strategies they use to attract and retain them. This analysis can reveal potential gaps or opportunities in the market that you can capitalise on to attract a specific customer segment. By combining these methods, you can create a comprehensive understanding of your target customer, allowing you to tailor your products, marketing strategies, and customer experiences to better meet their needs and preferences. I'm Bradley, an e-commerce expert with over 25 years of retail experience. If you would like to know how I may be able to help your business, feel free to drop me a DM. We can then have a no-obligation chat together.

An entrepreneur who owns a large discount retail store in Hyderabad came to me with an intriguing challenge: "How can I get shoppers to try our new range of private label Agarbathis without resorting to heavy discounts and offers?" During my walk through his store, I noticed something. The new Agarbathi shelves were immaculate - perfectly stocked and meticulously organized. With evident pride, he mentioned that he always ensured the shelves never looked empty or disorganized. I offered a suggestion based on my knowledge of behavioral science: "Why don't you try deliberately emptying the shelves a bit and introducing a subtle touch of disorder?" He raised an eyebrow, skeptical of this approach. Nevertheless, I encouraged him to experiment for a few days. Following my recommendation, he removed several packs of the newly launched Agarbathi range and slightly disheveled the display, creating an impression that other shoppers had been actively browsing the section. Three days later, he reported a noticeable uptick in sales of the new Agarbathis. When he asked about the rationale behind my recommendation, I explained that shopping behavior is often guided by subconscious cues. A pristine, fully stocked shelf might inadvertently signal that no one else has purchased these new Agarbathis - perhaps raising doubts about their popularity or quality. However, a partially empty shelf with signs of customer interaction creates an implicit social proof, suggesting that others are actively buying the product. This subtle indication of popularity helps eliminate the psychological barrier of being the "first adopter." I have tried these subtle nudges (thanks to Richard Thaler) in several of my retail assignments, and they've consistently influenced shopper behavior. The key insight? Small, seemingly counterintuitive tweaks in the environment can profoundly shape human decisions. #consumerbehaviour #consultingstories #marketing #retail

Retailers don’t compete on price alone. They compete on behavioral operating systems. It's crystal clear: Gen Z and Millennials are not browsing more they are deciding earlier, trusting fewer retailers, and executing faster once inside the store. Value today is defined at the entry moment, not the shelf moment. Walmart → RATIONAL Walmart competes on certainty. The shopper believes prices will be low across the entire basket without needing to check. NRF reports value is now defined as price + availability + consistency, not promotion Walmart wins the pre‑decision phase: the shopper chooses Walmart before shopping begins because it minimizes mental cost. Walmart is not discovery‑led. It is risk‑minimization retail. Costco Wholesale → PLANNER Costco is chosen deliberately. Trips are planned. Baskets are intentional. Warehouse clubs outperform grocery on visit productivity and basket size because shoppers arrive with commitment, not curiosity Private label trust (Kirkland Signature) is a major Gen Z driver; Gen Z treats Costco’s private label as a brand, not a substitute. Costco doesn’t rely on impulse. It compresses decision‑making before the visit and monetizes it at scale. Trader Joe's → CURIOUS Exploration is the value proposition. Gen Z over‑indexes in “discovery‑led food shopping” where limited SKUs feel curated, not constrained [letsdatascience.com], [nrf.com] Private label dominance removes brand comparison friction and amplifies discovery velocity. Trader Joe’s is not efficient. It is intentionally unpredictable, and that unpredictability creates loyalty. Erewhon → ASPIRATIONAL The store is a signal, not a solution. Why it works (NRF macro behavior): NRF highlights “affordable affluence” and status‑adjacent spending as Gen Z growth drivers even during inflationary pressure. Whole Foods Market → CONSCIOUS Trust replaces comparison. Why it works (NRF + AI research): NRF reports Gen Z defines value as ethics + quality + transparency, not just price Conscious retail reduces cognitive load shoppers stop questioning tradeoffs. Whole Foods sells confidence, not groceries. ALDI USA → EFFICIENT Time is the premium currency. NRF data shows younger shoppers optimize trips, not experiences; Aldi’s model directly aligns Private label + ultra‑limited SKU sets create the fastest path from entry to exit. Aldi doesn’t win hearts. It wins minutes. Target → IMPULSIVE Planned trip + emotional leakage. Why it works (NRF insights): NRF identifies “treat culture” as a primary Gen Z spending release valve even among budget‑constrained shoppers Target monetizes impulse without eroding brand trust. Target is a controlled impulse machine not a discount retailer. Kroger → HABITUAL The store disappears; routine takes over. Grocery shoppers optimize for familiarity when stakes are low. Loyalty, fuel rewards, and data reinforce repeat behavior. Retail growth goes to the retailer that defines the trip, not the shelf.

𝐁𝐄𝐇𝐈𝐍𝐃 𝐓𝐇𝐄 𝐑𝐄𝐓𝐀𝐈𝐋 𝐂𝐎𝐔𝐍𝐓𝐄𝐑: 𝐀 𝐂𝐄𝐎'𝐒 𝐏𝐄𝐑𝐒𝐏𝐄𝐂𝐓𝐈𝐕𝐄 at the 𝐅𝐈𝐑𝐒𝐓 𝐌𝐎𝐌𝐄𝐍𝐓 𝐎𝐅 𝐓𝐑𝐔𝐓𝐇 For some time in a small shop in Maharashtra, I wasn't the CEO. 𝐈 𝐖𝐀𝐒 𝐓𝐇𝐄 𝐒𝐇𝐎𝐏𝐊𝐄𝐄𝐏𝐄𝐑, answering, "दादा, हे चांगलं आहे ना?" Long before my current role, I was in sales—walking markets with a bag full of samples and a beat that never seemed to end. Reaching kirana stores before they opened, waiting my turn at the counter, watching shoppers pick up our product... only to quietly put it back, without ever explaining why. My biggest breakthrough came when I stopped thinking like a salesman and started thinking like the shopper. Her budget. Her hurry. Her habits. The brands she trusted without even thinking. Only then did I appreciate what truly drives the category. The lesson from those years still shapes how I think today: 𝐓𝐡𝐞 𝐫𝐞𝐚𝐥 𝐢𝐧𝐬𝐢𝐠𝐡𝐭 𝐧𝐞𝐯𝐞𝐫 𝐜𝐨𝐦𝐞𝐬 𝐟𝐫𝐨𝐦 𝐚 𝐬𝐚𝐥𝐞𝐬 𝐫𝐞𝐩𝐨𝐫𝐭. 𝐈𝐓 𝐂𝐎𝐌𝐄𝐒 𝐅𝐑𝐎𝐌 𝐓𝐈𝐌𝐄 𝐒𝐏𝐄𝐍𝐓 𝐍𝐄𝐀𝐑 𝐓𝐇𝐄 𝐒𝐇𝐄𝐋𝐕𝐄𝐒 Here are my observations on today's consumer journey at the moment of purchase: 1. 𝐓𝐇𝐄 𝐑𝐄𝐓𝐀𝐈𝐋𝐄𝐑'𝐒 𝐑𝐎𝐋𝐄 𝐇𝐀𝐒 𝐄𝐕𝐎𝐋𝐕𝐄𝐃 Consumers now walk into stores far better informed—aware of brands, benefits, ingredients, pricing and even specific variants. The retailer's role has evolved from educating shoppers to validating, recommending and influencing the final purchase decision 2. 𝐄-𝐂𝐎𝐌𝐌𝐄𝐑𝐂𝐄 𝐇𝐀𝐒 𝐓𝐑𝐀𝐍𝐒𝐅𝐎𝐑𝐌𝐄𝐃 𝐏𝐔𝐑𝐂𝐇𝐀𝐒𝐄 𝐁𝐄𝐇𝐀𝐕𝐈𝐎𝐔𝐑 Search on e-com, ratings, reviews, pricing comparisons and virtual try-ons have fundamentally changed how consumers evaluate products. Across many categories, purchase decisions are made long before consumers enter a store 3. 𝐑𝐄𝐓𝐀𝐈𝐋 𝐈𝐒 𝐍𝐎𝐖 𝐓𝐑𝐔𝐋𝐘 '𝐏𝐇𝐘𝐆𝐈𝐓𝐀𝐋' The shopping journey no longer begins at the shelf—it begins on a smartphone. Search, social media, reviews and AI-powered recommendations shape purchase intent, while the physical store completes the experience. Winning brands must deliver one seamless experience across every touchpoint   𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐮𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐢𝐬𝐧'𝐭 𝐛𝐮𝐢𝐥𝐭 𝐛𝐲 𝐭𝐚𝐥𝐤𝐢𝐧𝐠 𝐦𝐨𝐫𝐞—𝐢𝐭 𝐢𝐬 𝐛𝐮𝐢𝐥𝐭 𝐛𝐲 𝐥𝐢𝐬𝐭𝐞𝐧𝐢𝐧𝐠 𝐛𝐞𝐭𝐭𝐞𝐫 To everyone doing the unglamorous, on-your-feet work of #sales —the rush to reach the market first, the retailer who won't give shelf space, the targets that don't move no matter how hard you push—I see you, because I've been there Never underestimate the value of one more market visit. Every retailer is a teacher. Every shelf tells a story. Every shopper leaves behind an insight It was a pleasure working with our talented frontline team—Madan, salman, manish, Nadeem, Vijay and Sampat—whose energy and customer understanding make all the difference One more market visit done. Because the best strategies are shaped where consumers make their choices. On to the next market #Leadership #Management #Marketing #FMCG #ConsumerInsights

The next billion dollar retail companies won't have a better website. They'll have millions of different websites. One for every customer. For years, retailers optimized the same digital storefront for everyone. (1) Maybe a different homepage for new visitors. (2) Maybe a few product recommendations based on past purchases. But underneath it all, every customer was still walking into the same store. That model is starting to break because AI isn't just personalizing retail anymore. It's making retail adaptive. And that's a much bigger shift. According to McKinsey, 76% of consumers get frustrated when digital experiences fail to adapt to their needs. The companies responding to that aren't redesigning their websites every few months but they're redesigning them every few milliseconds. Here's what that looks like: 📍Interface becomes a decision engine Instead of showing the same layout to everyone, AI builds pages in real time based on browsing behavior, purchase history and intent. The homepage stops being static. Every session becomes a different storefront. 📍Customer insights move beyond text Most brands still rely on reviews, surveys and search trends. But consumers now spend more time watching than typing. AI can analyze videos, images and spoken conversations to detect product usage, sentiment and emerging trends before they appear in traditional dashboards. That gives retailers time to adjust inventory, campaigns and pricing before demand peaks. 📍Campaigns get tested before customers ever see them Instead of relying only on focus groups, companies can simulate thousands of customer journeys using AI-generated personas. Pricing Messaging Checkout flows Teams identify friction before launching anything to production. Human feedback still matters. But it becomes the validation layer, not the starting point. 📍Physical stores become adaptive too The same intelligence is moving beyond websites. Computer vision, edge AI and real-time sensors allow stores to monitor shelves, optimize layouts and automate checkout while events are happening. Retail stops reacting to operations and it starts responding continuously. 📍Real moat becomes orchestration As AI models become widely available, every retailer will have access to similar intelligence. The differentiator won't be the model. It'll be how well companies connect customer data, inventory, CRM and supply chain systems into one adaptive workflow because that's where decisions compound. Retail used to optimize experiences. The next generation will optimize decisions. And the companies that shorten the gap between customer behavior and business response will quietly outperform the ones still redesigning the same website every quarter.