Marketing: Optimizing Data Collection and Analysis for Success in the Fashion Industry
The fashion industry is constantly evolving, and in order to keep up, it’s important to understand the impact of media initiatives and effectively measure return on investment (ROI). Launchmetrics and Publicis Sapient have collaborated to address these challenges in their report, “The State of Measurement in Fashion, Luxury & Beauty 2022.” This report is the result of interviews with over 1,000 industry experts worldwide, with a focus on the United States and China. By joining forces, these data analytics and digital consulting companies aim to provide valuable insights into measurement practices within the industry.
Data and analytics are recognized as crucial in many companies, but often, there is a gap in the necessary skills and mindset to interpret them effectively. According to Launchmetrics CEO, Michael Jais, having access to data and insights is one thing, but making informed decisions based on that data can be challenging. The fashion industry requires a combination of rational analysis and creativity, making it a complex communication challenge.
Additionally, brands in the fashion industry face difficulties in recruiting professionals who can effectively convert data into actionable insights. Olivier Abtan, Managing Director of Publicis Sapient, highlights that up to 50% of marketing managers struggle with this process. It’s not enough to simply have access to information; brands need individuals who can draw valuable conclusions and observations from the data.
To navigate the complexities of influencer marketing, brands need to establish clear objectives and evaluate whether their strategies align with those goals. Michael Jais emphasizes the importance of stepping back from trends and competitors’ actions to set relevant objectives and ensure coherence. This clarity is crucial for maximizing efficiency and profitability.
A clear and well-defined foundation starts with identifying and defining key performance indicators (KPIs). These KPIs serve as fundamental units of measurement and help guide decision-making based on relevant data. However, the report reveals that 70% of data scientists in the industry agree that a unified view of marketing performance should be a top priority for all companies. Brands need a global vision that goes beyond individual channels and independent analyses to enable meaningful insights and informed decision-making.
Competitive analysis and data interpretation pose challenges for many brands. The increasing diversification of social networks, video formats, and livestreams has significantly increased touchpoints and formats. At the same time, budgets have not kept pace with this expansion. In this context, brands must be sure of what works and what doesn’t. Overwhelmed by the sheer volume of data, many professionals struggle to analyze and prioritize relevant information effectively.
Undoubtedly, data plays a vital role in the fashion and luxury industry. Data-driven companies focus on understanding and segmenting customers as well as monitoring marketing budgets. Luxury brands, in particular, must be data-driven across all aspects of the brand and customer experiences to maintain their valuable position in the market.
Acquisition costs in marketing were expected to decrease with the rise of the internet and social media, benefiting small brands with low-cost campaigns. However, the opposite has occurred. Big brands have heavily invested, driving up costs and creating a higher barrier to entry. Accurate measurement of ROI becomes even more crucial in this context.
In addition to rising acquisition costs, data protection regulations such as the European General Data Protection Regulation (GDPR) are imposing additional constraints on the processing of personal data. While the impact of GDPR is primarily felt in relation to personal data, the Chinese market is also experiencing regulatory restrictions on data usage. These factors pose significant challenges for the fashion industry.
The report also explores emerging platforms such as Twitch and Discord, which present opportunities and questions for luxury brands. These platforms offer unique communities and opportunities for experimentation, but may not yet align with luxury brand customers. It takes time for luxury customers to adapt to these platforms compared to the rapid advancements in technology and data.
Regarding return on investment (ROI), Launchmetrics CEO advises caution with initiatives related to the metaverse and NFTs. While these areas may be exciting, luxury customers are not fully engaged with them at the moment. The development of these sectors will take time, and luxury brands can afford to be patient. Meanwhile, smaller brands can explore and experiment, with their priority being to establish a solid presence on the Web3 platform.
In conclusion, optimizing data collection and analysis is crucial for successful marketing in the fashion industry. Launchmetrics and Publicis Sapient’s collaboration sheds light on the challenges brands face in interpreting data and making informed decisions. By setting clear objectives, defining KPIs, and adopting a unified view of marketing performance, brands can overcome obstacles and leverage data-driven insights. However, rising acquisition costs, data protection regulations, and the potential of new virtual worlds must also be considered. With a strategic approach to data collection and analysis, fashion and luxury companies can stay ahead in a highly competitive industry.
Useful Links:
– Data-Driven Marketing in Fashion, Luxury & Beauty
– Augmenting Your Marketing with Data
