The U.K’s largest footwear manufacturer tapped into the power of predicative analytics to bolster margins and improve sell-through rates.
Hotter Shoes said it plans to use the tech company’s consumer-driven model, which helps brands and retailers better understand consumers and inform decisions on product investment, pricing and marketing decisions, to enhance product design, buying and pricing decisions.
“Implementing First Insight’s digital product testing and predictive analytics will enable us to increase product sell-through and margins using direct feedback from our customers,” Victoria Betts, chief commercial officer of Hotter Shoes, said in a statement.
“Leveraging the voice of the customer to optimize our buying decisions and assortment selections will help us to offer the right products at the right price as we continue to grow our business domestically and internationally,” Betts added.
First Insight uses specialized online engagement tools to extract real-time customer preferences from the internet—gathering pricing and sentiment data about hypothetical products.
Then, the firm feeds that data through its predictive analytics models to decide which products have the potential for the greatest financial return.
“Hotter Shoes has spent decades building its business around innovation and creating high-quality products for its customers,” Greg Petro, CEO and founder of First Insight, added. “We’re excited to partner with Hotter Shoes and help them optimize their operations and eliminate the guesswork that’s typically involved in product development by incorporating the voice of the customer into each step of their process.”
The news of First Insight’s work with the footwear maker comes on the heels of another new partnership. On Thursday, Li & Fung announced plans to integrate the First Insight decision-making platform into to its supply chain. The goal, the companies said, is fewer markdowns, less leftover stock and more confident decision making at the retail level.