Introduction

The retail industry generates huge volumes of data that it uses for its gainful insights and leverage business decisions based on the meaningful dataset’s insights. The field and retail analytics definition hold great promise in the field of helping the retail industry develop.

In this article let us look at:

  1. Definition
  2. How to use retail analytics?
  3. Examples
  4. Benefits

1. Definition

The process of using retail analytics techniques, analysis and analytical tools to predict business patterns, trends, performance charts etc., in the field of the retail industry is called Retail analytics. Retail analytics allows these businesses to leverage data-based insights, thereby improving product decisions, customer experiences, optimization of operations, increasing sales, etc.

2. How to use retail analytics?

One can use retail analytics in a variety of business fields and types of retail analytics like marketing, supply chain logistics, sales, customer behaviour, inventory and more. It provides retail analytics challenges business intelligence that is actionable and keeps track of all retail business aspects. One can identify the customer cohort that has the best value, forecast sales, identify the best-selling products, control cash-flow, predict the marketing future demand, changing customer preferences etc., which makes retail analytics a must for developing the best retail strategy and for making data-driven gainful business decisions.

3. Examples

As seen above, retail analytics tools support analysis of customer experience, operational performance and more leveraging the use of data-based retail businesses decision-making and strategy to improve marketing efforts and market share as retail analytics examples. Here are 4 example areas that exploit the advantages of retail analytics.

  • Developing people and data relationships: A number of factors are important for online shopping destinations to succeed. Retail analytics benefits aid in building the style, reacting to customer behaviour in real-time, understanding trends in customer needs, predicting sales and more. Most importantly, solutions based on retail analytics foster streamlined relationships between customers, the data generated, and the business employees, making way for better operational performances and customer experience.
  • Customer experience optimization: By effectively improving the analysis process and data-gathering, one can improve customer experience and user engagement metrics. For instance, an enterprise wanting to introduce natural make-up products in its line of make-up products can use retail analytics tools to predict market demand, optimize customer experience, develop strategies for customer retention and more.
  • Real-time data access in self-service mode: Businesses keep generating data, and the growth of the retailer’s business potentially generates huge volumes of data. As they scale, the process of reporting and analytics gets cumbersome with un-meaningful data. Hence, the importance of retail analytics platforms, which are prime solutions to provide online self-service and access in real-time to shopper data. Using this kind of solution, a business can use both external and internal data while providing real-time retail analytics solutions to customers and employees alike.
  • Obtaining customer-needs 360-degree vision: To deliver a 360-degree retail analytics software vision solution means that the business is able to access a single truth source to make decisions that assess, predict or impact customer needs and business strategy. Thus businesses can deliver better customer service and products demanded by customers.

4. Benefits

Leveraging insights from data by retail organizations help improve the markets, products, retail operations and fulfil customer needs through the use of retail analytics tools helping make gainful insights and data-driven business decisions in sales, operations and marketing. It also provides a single truth source about customer behaviour in retail analytics best practices, buying preferences, offline and online brand engagement and more. Thus some of the benefits of retail-analytics are

  • It provides valuable insights regarding customer behaviour, experience and journey: Retail data analytics, solutions and platforms, provides the map of the customer- journeys, buying behaviour, interactions of customers across channels and brands. Hence the solution provides gainful insights that can be leveraged for an improved customer experience. 
  • Enhances customer-experience: Leveraging retail-analytics provides businesses with forecasts, insights and customer information regarding customer needs, preferences and tastes. Such information can be used to improve the customer journey, experience and helps customer retention across online and in-store brands. 
  • Anticipate marketing forecasts and demands: Retail-analytics tools make forecasts, predictions of the market and help gauge customer needs and buying behaviour. Such data insights help product promotions, improving products and their prices, generating opportunities for revenue and development of the supply chain.
  • Optimize and improve in-store operations: The insights of retail-analytics can be used to improve in-store operations identify opportunities and inefficiencies in the process of standardization, improving buyer experience, and forecasting the optimum levels of staffing, inventory, demand etc. 

Conclusion

This article provides a brief introduction to what is retail-analytics, what it does and how retail-analytics can be used to generate gainful data-driven forecasts and insights that can be leveraged for business strategy and improvement of all business processes. Retail -analytics is hence a powerful tool for businesses.

If you are interested in making it big in the world of data and evolve as a Future Leader, you may consider our Business Analytics Course Online, a 10-month online program, in collaboration with IIM Indore!

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