{"id":453,"date":"2012-05-23T16:19:48","date_gmt":"2012-05-23T16:19:48","guid":{"rendered":"http:\/\/www.franchisemart.in\/franchise\/?p=453"},"modified":"2012-07-19T12:09:46","modified_gmt":"2012-07-19T12:09:46","slug":"retailers-use-gaming-to-predict-sales-before-they-happen","status":"publish","type":"post","link":"https:\/\/www.franchisemart.in\/franchise\/retailers-use-gaming-to-predict-sales-before-they-happen\/","title":{"rendered":"Retailers Use Gaming to Predict Sales Before They Happen"},"content":{"rendered":"

\"\"<\/a>With gaming becoming more and more popular, it\u2019s no surprise that it has now found its way into retail analytics.<\/p>\n

Traditional predictive retail analytics have relied on waiting until a product exists and then launching a test run and examining the sales history to see which products sell better than others.<\/p>\n

First Insight uses online games to help retailers gauge wahich merchandise to move ahead with and which to hold off on. It also determines what colors and styles are most popular\u2014all before the product has been created.<\/p>\n

The concept is based on the idea that retailers want to understand their customers and provide them with what they want rather than guessing which products and styles they\u2019ll be drawn to, said Jim Shea, vice president of marketing for the Pittsburgh-based company.<\/p>\n

\u201cIt\u2019s addressing the most difficult challenge in retail,\u201d he said. \u201cHow will an item that is new to a retailer\u2019s assortment or new to the market perform? And what is the optimal starting price point for that item?\u201d<\/p>\n

First Insight offers five games geared around crowd sourcing to inform retailers what products to promote and which to avoid and how each item should be priced. The games are shared with the consumer via social media, email, mobile apps or the retailers\u2019 websites.<\/p>\n

They can also include preliminary questions to screen for age, gender or knowledge of the product.<\/p>\n

Email is currently used the most often, but First Insight Chief Executive and President Greg Petro said the company wants to provide multiple options.<\/p>\n

\u201cWe want to engage with consumers wherever they reside,\u201d he said.<\/p>\n

The most used games are \u201cWhat Would They Pay,\u201d \u201cStyle Opt\u201d and \u201cSold!\u201d With \u201cWhat Would They Pay,\u201d consumers are shown images of products and asked to rate what they think each different product costs\u2014for example, a silver-plated watch versus a watch with a leather wristband.<\/p>\n

\u201cStyle Opt\u201d allows voting on styles, and \u201cSold!\u201d provides a virtual storefront where consumers can stock new products and select price points. Feedback can help dictate pricing, as well as preferences toward specific merchandise.<\/p>\n

Some stores provide the games via iPad on-site in their stores and reward the customer with a digital coupon for playing.<\/p>\n

\u201cGames are interesting because it\u2019s the idea of getting people to do activities rather than an arduous task,\u201d Petro said.<\/p>\n

Consumers also like the idea of being in the know and receiving a \u201csneak peek\u201d at unlaunched products, he explained. All of the games provide feedback within 72 hours, allowing brands and retailers to decide which merchandise they\u2019re interested in producing or purchasing.<\/p>\n