How Chewy Sets the Stage for Accurate Inventory
There are many reasons to use sales forecasting tools. Sales forecasting software predicts the sales a business will make within a certain time frame. These predictions are shown on a forecast produced most effectively by a software solution. These sales forecasts are helpful in multiple aspects of your business operations. As you’re more aware of what your revenue will look like, you make more educated and effective financial decisions.
Just like business types vary greatly, there are multiple types of sales forecasting tools. Companies forecast using methods often unique to their company. Due to this, some forecasts are more accurate than others. It’s imperative you find the best sales forecasting software for your company.
One company who has seen major success as a result is Chewy.
Chewy is an online source for all things pet related. It was founded in 2011 and is based in Dania Beach, Florida. Chewy offers products from over 1,000 brands. It has been compared to Amazon, but for pets. Shipment times from Chewy are typically 1-2 days, and customer satisfaction is at the center of all they do.
Chewy is known for being extremely friendly and focused on their customers. One of example of this was seen recently. A customer’s dog passed away and he soon after found flowers on his doorstep sent from Chewy. This was just a normal customer, he wasn’t known for mass orders or anything out of the ordinary. He was impressed with Chewy’s thoughtful attentiveness in his time of sadness.
Chewy has a customer support line available 24/7. Their customer service representatives don’t read from a script. They speak to their callers like friends. Additionally, customers who have product delivery subscriptions have access to free Veterinarian counsel. Chewy’s customers are pleased with the way they’re treated, and they often share their positive experiences with other people in their life. Sounds like pretty effective free marketing!
The operational standards of Chewy also deserve recognition. Chewy implements practices that guarantee benefits for both the customers and the company through retail sales forecasting.
When you start an account on Chewy.com you create a consumer profile. You’re able to put in facts about your pet, like their birthday, allergies, breed, name, weight, medications, and more. You can even put in a photo of your pet!
Customers also have the option of an auto ship feature, similar to subscribing to a product delivery on Amazon. With this, your pet’s products will have scheduled deliveries, eliminating your need to go to the physical pet store. You will receive a 30% discount, up to $20, on your first auto ship order. Additionally, there are 30 popular brands that with auto ship, you’ll always get a 5%-10% discount on.
These may just seem like customer loyalty perks, but there’s more of a reason behind these nice benefits. With a profile of their consumers’ interests and needs, Chewy has a very good idea of what inventory they need to have in stock. For example, in a given quarter if there’s an influx of customers with dogs, but not many cats, Chewy would be smart to stock up on their most popular dog products.
The subscriptions offer customers a few saved dollars, and they help Chewy know what products are almost guaranteed to be purchased. For example, if 100 customers subscribe to a certain brand of dog food, Chewy knows to order at least that much product. Also, Chewy can work out additional deals with the brand as they have guaranteed consumerism to support their bargaining.
These methods are both part of sales forecasting tools Chewy uses.
Chewy has quickly become the leading supplier of any pet need you can think of. PetSmart was threatened by this online alternative, and in the largest e-commerce acquisition purchased Chewy for $3.35 billion. Chewy has 19.8 million active customers, so their success is only going to continue.
You may look at this example and think your company is too different to benefit from any kind of retail sales forecasting software. Let us assure you, regardless of your company’s size, sales forecasting software can benefit your business. If you have product to sell, you can always use predictions regarding your future sales.
Accurate forecasts allow you to make equally accurate plans regarding your inventory, finances, warehouse operations, labor costs, and more.
At Avercast, we have spent the last 40 years becoming experts in supply chain management. Our experts have developed over 200 algorithms to ensure our software produces the most accurate forecasts possible. We have customers all over the world, and they all have recognized the unmatched accuracy and satisfaction guaranteed with Avercast. Visit our homepage to read direct quotes from happy Avercast customers.
If you want to see more success through accurate sales forecasting tools, you’re at the right place. Our experts would love to talk specifics with you. Please reach out today for a call or product demonstration given by one of our qualified representatives.