Introduction
You visit your local supermarket to get a few items for the house. As you enter, you go to the aisle marked ‘Kitchen Appliances’ because you want a new frying pan, and then your eyes move to the shelf with wooden spatulas and ladles. You pick up a nice ladle to go with the pan. Essentially, you navigate the store with the help of strategic product placements, which help you find related products quite easily.
Companies that sell their products on eCommerce websites also use a similar principle. Categories on eCommerce websites such as ‘You might also like’, or ‘Customers frequently bought these together’ are some of the most common ways this is visible there. This phenomenon is called Product Grouping.
Why is it Important?
- Simplified Navigation and Discovery: Much like the supermarket, the overwhelming amounts of products and information is filtered, and only products that are relevant to the customer are shown.
- Reduced Search Time and Effort: The customer shopping experience is simplified and made efficient through minimal amount of clicks or steps, and easier access to related products.
- Inspiration and Idea Generation: Groupings such as “Essential Tool Box”, or “Beginning Sewing Kit” that are use-case based, help customers who might not be sure of what they need.
- Improved Product Comparison: Similar products being showcased to customers parallelly can help them make more informed decisions by comparing prices, material, color, etc.
- Personalized Experience: Based on the shopper’s buying history, or groupings that cater to specific demographics or lifestyles (for instance, “For New Parents”), their shopping experience can be enhanced, and provide customer satisfaction and build trust.
Moreover, product grouping is also a great way to push slow moving products, when bundled with similar products in the customers’ carts. And it is also an efficient way to bundle low-cost, high-margin items accessories with a big purchase. Therefore, it becomes a win-win situation for both the customer and our clients.
- Automated Grouping: We provide this feature, which ensures automatic identification of similar products, based on usage scenarios, common job tasks, or thematic associations.
- Customizable Recommendations: This enables tailored recommendations for customers based on our clients’ needs and sales objectives. It also refines grouping parameters to align with market and industry requirements.
- Enhanced Sales Enablement: This encourages upselling and cross-selling opportunities by providing sales teams with pre-configured bundles and recommended kits.
- Data Driven Insights: This includes analysis of data, such as market trends and customer behavior, to ensure updated and personalized grouping strategies.
- Scalable Architecture: We can adapt to the evolving needs of our clients, and also keep up with growing catalogs and customer bases efficiently.
- Streamlined Inventory Management: This allows for an inventory turnover through strategic product-groupings, and leads to reduction in excess stock, as well as the benefit of minimizing storage costs.
