Digital strategy could be described as application of the various digital technologies to the business models for forming the various differentiating business abilities. In future, all the businesses strategies would be completely digital strategy. Chanel is primarily based in France, and this company could be considered as the firm of fashion design popular for the innovations such as little black dress, the two-tone and the tweed suits. Gabrielle Coco Chanel opened the first hat shop in 1910 under name of Chanel mode as well as continued to add the stores in the later years for selling dresses. The company gained huge revenue in the 1990-2010 decade due to the introduction of new product lines and categories. This report aims to analyse the business of Chanel and then suggest the digital strategy which should be implemented for improving the online sales.
The navigation of the Chanel website starts from the homepage of the organisation where the various offers and products are displayed. From there, the users could travel from products page to select the products and then place their order from the shopping cart page (Kusuma, 2018). Online sales have been considered as the future of business because it ensures increase in sales of the organisations and allows the organization to establish their presence in the market. Through the revolutionised method of online sales, the products could be properly and easily advertised for the potential customers. The potential customers of the organisation could be easily determined from the analytics of buying patterns and buying preferences. On the basis of the gained data, the organisations could develop proper sales strategy which would allow them to advertise the products for the target audience (Fang and Zhang, 2020). The issue which is presently raised in Chanel business is the lack of proper platform for conducting analytics of their sales data and generate proper insights for the business. Presently, majority of the decisions of Chanel organisation are being made on hunch and not on proper data or facts. The reason for this issue is the lack of proper access to the quality data which would help in making the improved decisions for the business. Due to the lack of analytics in the business, large amount of data is not being displayed quickly in proper formulated manner for helping in achieving the particular organisational goals (Hung, 2020). In the present world, the customer preferences are changing constantly and organisations need to keep track of trends and preferences of the customers. The online sales department of Chanel needs to keep track of the customer preferences properly and analyse the customer choices for generating effective sales campaigns. Customers craves for products of Chanel which would meet their individual requirements. Due to the lack of analytics in the organisation, Chanel company is not able to keep track of which type of product is preferred by customers and then display the suggestions on the basis of the preferences (Siahaan, and Manurung 2021).
Digital strategy could be described as application of the various digital technologies to the business models for forming the various differentiating business abilities. The digital strategy which would be beneficial for Chanel company is the introduction of data analytics platform which would help in conducting analytics of the sales data to generate efficient insights of the business. Chanel organisation is facing major issues in sales department due to the lack of effective platform of data analytics of the sales data. Digital strategy would help in improving sales by generating proper sales insights from the analysis of the generated sales data.
According to several researchers, data plus data analytics are crucial for the businesses due to various reasons. The sole reason why analytics and data would help the managers as well as the owners comprehends how the business is faring and what should be done in the business for improving the organization. According to Chanel newsletters, the organisation is facing major issues due to the bounce rates of their online sales. The initial data which is the concern for the business is bounce rate of the website (Yin, 2022). Chanel is presently facing higher bounce rates which denotes that the customers or individuals who are less interested in the products of the company and some modifications should be done in the product descriptions. The search engines are not identifying the Chanel website for the relevance and it is not ranking properly to meriting its display (Guseva, 2021).
Another issue being faced by the Chanel business for which data analysis is required is the demographics analysis. Collecting data regarding who has been visiting the website of this business and from where the individuals are visiting from is extensively important for the business. It would help in understanding whether Chanel business is able to reach the correct target audience or it is gaining the hits from any market it could not serve (Tamerler, 2021). There is a need of conducting data analysis of the demographics data because it would help in determining why there is a higher interest from any particular demographic zone. Therefore along with bounce rate, it could offer the vital inputs if people are only looking for any particular product and visiting the website or they have authentic interest in the website.
According to ?zmirli, Ekren and Kumar, (2020), the Chanel sales also need the analysis of the data of conversion rates of the website. Th campaigns of online marketing, although economical as compared to the conventional media advertising, does costs huge money for the business. And if the campaigns are not leading to the sufficient conversions as the customers, there is a requirement of reviewing the complete marketing strategy. The conversion rates could be calculated in Chanel business through the simple method of calculation of the cost per conversion.
According to Schlögel, (2021), another reason why data analysis is required in the business is to predict the client behaviours. The online data which is captured by the business from any website as well as their analysis could provide significant knowledge regarding the client behaviour. The Chanel company desires repeat customers as well as from several areas. When any client would repeatedly visit the website for placing orders, it would help in predicting the behaviour over next few months and provide them offer that would help in ensuring loyalty. Predicting the behaviour of client could not be considered as any easy task. It needs extensively skilled data analysts, the integration with the customer relations and proper software for generating the data on customer preferences.
Aftowicz, (2020) claim that Chanel business needs data analysis platform for improving their decision making. Analytics and data could be considered as invaluable when the decision-making aspect is considered for the business. It would offer required insights whether business is headed in correct direction or some new thing have to be introduced in the business for steering it on the required track. It assists with the identification of the market trends as well as the requirements while discovering why particular products or the services are faring properly while some products are not popular among people. The data analytics technology in Chanel business would help in taking the vital decisions for the business (Zihan, 2021).
The data analytics in Chanel organisation helps in informing sales as well as the marketing decisions. It includes the market expansion, widening overall range of the products or the services, including the pricing policies as well as the customer care. Chanel needs proper data analytics software for basing their decisions on the authentic data instead of inaccurate guesswork or even the ambiguous information (Barinova, 2019).
The researchers claim that data analytics is required in Chanel organization for reshaping the interactions with the customers, market increasingly efficiently and finally helps in driving more sales in the company. The data analytics in Chanel would help in enabling segmentation of the business. Segmentation mainly includes the segregation of the customer data and then grouping the similar data together (Ibrahim, 2021). This particular information could help in creating the messaging that would resonate with each of the segment individually. It is being claimed by several researchers that data analytics in Chanel would help in promoting the product development. For staying extensively competitive in the customer-centric market, the product or service requirements should be properly tailored to the customers. Gathering accurate data from the surveys would be appropriate method of determining what is working in the organisation and what is not working (Fleming, 2019).
Another need of the sales department of Chanel business is agility of the sales being done by the organisation. Agility mainly denotes to the activities of the organisation of keeping their prevailing customers instead of gaining new customers. Due to the lack of proper data analytics, the organisation is not able to properly retain the customers and they are not able to constantly adapt to the changing requirements, issues of the customers (Pereira, 2021). Chanel company does not have proper platform for executing disruption and innovation. Due to the lack of data analysis in the organisation, gathered data from the business could not be analysed properly and it does not allow the organisation to innovate their products because of lack of efficient data. The data analytics technology in Chanel business would help in taking the vital decisions for the business (Varadzhakova, 2019).
The data analytics in Chanel organisation helps in informing sales as well as the marketing decisions.
There is range of BI systems which could be used by Chanel business for improving the sales of the organisation are the BI dashboards and the key performance indicators for quickly accessing to the complex information such as discount analysis, the customer lifetime value and the customer profitability. Some of the BI systems which could be used in Chanel company are:
Sisense: Sisense is the software for business intelligence which offers the required analytics solutions as well as the market insights for the small to even the enterprise level businesses. Sisense is among the solely few functioning software systems of BI that allows the non-technologically inclined users into combining various data sets, personalise the dashboards, and produce data visualisations plus share them with various users. This particular web-based system of BI unifies the data into one proper centralised location deprived of using the IT departments or hardware. This software could be used in Chanel for improving the sales analytics and proper insights would be generated.
SAP business objects: The business intelligence system of SAP BusinessObjects is the centralised suite for the visualisation, data reporting, as well as sharing with the other users. As the BI layer on-premise for the business technology platform of SAP, it helps in transforming the data into proper beneficial insights, which are available anytime, as well as anywhere. The insights could be shared and improved decisions could be made through the business intelligence suite of SAP BusinessObjects. With providing the proper flexible architecture, analytics platform could help in supporting the business growth.
SAS: SAS analytics could be defined as the solution of business intelligence which includes the overall ability of revealing the patterns as well as the anomalies in the data, recognise the relationships as well as the various variables and forecast the future outcomes. The users of SAS analytics would gain huge benefit from making the more sound, improved informed decisions in the business on the basis of the market trends and the company data. Data visualisation, data mining as well as the text analytics, along with forecasting, would be made available for the users through the SAS analytics.
Tableau: Tableau mainly specialises in making the intuitive visualisations, but much of the tasks that could be done through this software is emphasises on the corporate environments with the bigger budgets and data engineers. There is a public version of this tool, but with the restricted capabilities. The higher the users pay for the features of Tableau, the more access the users would gain in the system, involving the benchmarked data from the third parties. This software could be used by Chanel for executing sales analytics and generate proper sales insights for the business. This software would allow the organisation to generate proper insights which would form the base for critical business decisions.
The proposed digital strategy for the Chanel company for eliminating the issues of marketing and sales is the introduction of BI system of SAP Business analytics. The organisation should not completely shift to the online medium and they should maintain their offline methods of business to ensure all kinds of users would be able to avail the products of Chanel. The reason why the organisation should stay store base is because:
Offline stores helps Chanel in developing proper personal relationship with the customers through meeting the customers in person and providing solution to their issues which could not be provided through the online methods.
Store base business method of Chanel would provide the customers with the additional benefit of checking the products before purchasing the products. Majority of the shoppers of Chanel prefer checking the items of the stores before purchasing the products. The organisation focusses on providing high quality customer experience and the customer experience could not be maintained through the online methods.
Store base advocates less product return rate: The return rate of Chanel organisation is rather low due to the implementation of the store base process of business. These statistics could not be achieved with the online method of business because it would not allow the customer to check the products properly before purchasing.
The BI system which should be implemented in the Chanel company is SAP business objects. The SAP businessObjects would help the organisation in gaining information clarity and the insights. The business owners would be empowered by offering the ability of easily relating the ad-hoc queries as well as manage the powerful data analysis for gaining the improved business insight. Implementing the BI system of SAP BusinessObjects helps in the improved streamlining of the operations of business intelligence through improving the user information of the business.
Conclusion
Therefore, conclusion could be determined from this discussion that the marketing and sales of Chanel company could be improved through the BI systems. The SAP BusinessObjects BI system would help the organisation to generate proper insights which would help in taking crucial business decisions. The issue which is presently raised in Chanel business is the lack of proper platform for conducting analytics of their sales data and generate proper insights for the business. Digital strategy could be described as application of the various digital technologies to the business models for forming the various differentiating business abilities. The proposed digital strategy for the Chanel company for eliminating the issues of marketing and sales is the introduction of BI system of SAP Business analytics. Store base business would provide the customers with the additional benefit of checking the products before purchasing the products. The data analytics technology in Chanel business would help in taking the vital decisions for the business.
References
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