Whenever we visit a retail store, we see that the store tries to stock the products that would be having a higher demand in a season before that season arrives. But how do the store managers know when to keep what in their stock?
In earlier times, understanding the situation in real-time was a little difficult. The understanding came with experience, and the growth could be seen after a long period of time. With the introduction of retail analytics, understanding consumer behavior and seasonal demand have become easy to grasp and very insightful. Let us get to know what retail analytics is and how it is helpful to a business.
What is retail analytics?
Retail analytics is a process where the data is collected from inventory, supply chain, consumer demand behavior, sales, and other departments. This data which is collected from the business is then used in various activities such as for creative marketing campaigns, making proper strategies and taking appropriate decisions.
In a nutshell, it is a process of running a retail business with the help of analytics tools which assist in gathering sales data, identifying the trends, and visualizing them in an easy-to-understand manner. With retail analytics, a business can change how it is creating strategy and make decisions in maintaining customer relations and growth.
What leverage does it give to my business?
Retail analytics improves both, a business’s operations as well as the customer’s experience while shopping through the store. With retail analytics, the stores could achieve the following:
Streamline customer experience:
A customer’s data, such as his name, age, purchase order, and more can provide insights to a business. With the collection of information, an organization can understand customer behavior and refine the customer experience while shopping. Retail analytics here play a significant role by collecting such data and visualizing the data to have a better understanding.
Link data and people:
Streamlining the data can be very helpful. Retail analytics can help in the measurement of user engagement and refinement of experience that consumer gets. The data helps with the improvement of marketing strategies and provides assistance in increasing customer engagement with the campaigns prepared by the store managers.
360-degree view with real-time access:
Reports in the form of information provide a better view to take proper decisions and prepare a strategy that assesses customer’s desires. As a business grows, its operations grow as well. The growth in operations can sometimes lead to functional gaps, which might impact the company’s health and create difficulty in understanding what the customers want. A well-tuned retail analytics platform provides a 360-degree perspective of customers’ requirements and data to help retailers design better customer-centric experience, marketing, and customer care.
How to use it?
Retail store analytics provides a business with actionable insights from the data. Whenever a customer shops from a store, the customers unintentionally create a profile of themselves, this includes their purchase history, the demographics that the customer belongs to and various other details.
The actionable insights from this data can be useful to different functions of a store such as sales, marketing, supply chain, etc. For example, a business by using retail data analytics can discover the best-selling goods in their store, anticipate sales and future demand, and better regulate cash flow.
Benefits of Retail Analytics:
Retail analytics helps retail managers have a deeper understanding of their customers and make informed business decisions. With retail analytics, a business can function more effectively and efficiently. Some of the benefits are as follows:
Update consumer choices:
Retail analytics assists a retail store in analyzing its consumers’ behavior throughout their purchasing cycle as they connect with the brand across channels. This knowledge may help the store in strengthening the connections by understanding the sorts of offerings and experiences that customers are attracted to.
Improved customer experience:
With retail analytics, a retailer’s job becomes easier since there is a gain of greater insight into customer likes and preferences. In addition, this information will assist you in improving their experience with your brand through feedback, both in-store and online, allowing you to attract and keep a more loyal consumer base.
Up to date with trends and demands:
Retail analytics provides stores with information from their customers’ purchasing behavior and prepare a plan for future demand. The insights create an understanding of how much a customer is willing to spend on an item, the consumer’s willingness to spend the same amount on its substitute, and the preference of consumers in an area. This information may then assist a retail store in determining how to price and how to advertise it to increase revenue and sales and optimize the supply chain.
Retail analytics provides actionable insights from the available data. This helps in predicting all the aspects of a store’s operations. The actionable insights from available data can help stores in identifying faults at any step which could affect the buyer’s experience, the demand for the product and even to maintain the stock of the product in the inventory.