Have you ever fumbled over different product description names? Are you furiously looking through competitor products, wondering if you should follow in their footsteps? Or perhaps you've tried a million different naming options and nothing seems to budge.
You're not alone. Several small business owners are blindly naming and cataloging their products sold online without any detailed knowledge of how they *really* stack up. They have very little data to confidently say that one particular strategy is working better than others. Stitch is a great platform to not only track this type of information and access your business analytics from one location, but our team also spends much of our time analyzing aggregate performance data to share with you. These data points expose the critical impact that these seemingly small decisions have on your business.
Recently, our team conducted research that led to key findings indicating revenue differentiations as a result of color names alone. Mined from retail sales data of more than one million orders spanning tens of thousands of businesses, we found that not all products boasting creative color names experience increased revenue.
Stitch Labs’ data reveals where businesses can test getting creative with color names. Key findings include:
Classic Color Names Reign Supreme
Red color families generate up to 28 percent higher revenue with standard names versus creative equivalents, such as strawberry, raspberry or cherry. Because this classic color name performs better, businesses can save time and creative resources by sticking with tradition.
Creativity Can Pay Off
From the data, colors in the purple family generated up to 31 percent higher revenue when creatively named. As businesses focus their creative efforts, it could be advantageous to focus creative efforts in purple families.
Brown, pink, and yellow products showed minimal increase in revenue generation. Chocolate was found to bring in almost the same revenue as brown. In this example, a company selling "brown boots" may experiment with calling them "chocolate boots" for brand purposes. However, the point here is that testing is crucial to make sure each individual business is attributing profitable descriptors to their products. A large clothing business may not want to allocate resources and time in these color families based on the return.
Because these seemingly small decisions, like color naming, have such a large impact on overall sales, it’s important that you are implementing technology that tracks and analyzes your individual sales data. You may think that choosing ‘midnight’ over ‘black’ is a fun way to express your brand, but if you knew it would tank sales, would you risk it? Leveraging the power of Stitch's data is what will keep you ahead of your competitors. You will continue to learn more about your business and throughout time, master your growth strategy.
To learn more about how Stitch Labs’ inventory control solution helps retailers make smarter business decisions, please visit www.stitchlabs.com.