5 Reasons Why You Shouldn’t Ignore Retail Analytics?
The days of customer loyalty in the retail business is long gone. Customers are more likely to choose a retail store based on convenience and cost. It doesn’t really matter if it is a big supermarket or a small mom and pop store as long as the customer can get what they want at a […]READ MORE >>
The days of customer loyalty in the retail business is long gone. Customers are more likely to choose a retail store based on convenience and cost. It doesn’t really matter if it is a big supermarket or a small mom and pop store as long as the customer can get what they want at a price they are willing to pay. Such a shift in consumer behavior is shrinking the profit margins in the retail industry as retail companies now have to be more aggressive in their pricing and business expansion strategies. To solve such problems and optimize the retail supply chain, retail companies are resorting to a retail analytics platform.
So Why it is Unwise to Ignore Retail Analytics?
Improving In-Store Performance
When it comes to stocking brands and products, retailers are hesitant to experiment; there is always an urge to go for tried and tested brands. But big data is providing a solution to eliminate such decisions based on gut-feeling as retail analytics platform integrate data from hybrid click-and-brick stores. The data collected can give insights on different brands so that retail companies can stock the hot selling brands on their retail shelf.
The only way to stay competitive in today’s world is to understand your competition and stay ahead of them. Companies use retail analytics platforms to analyze competitors pricing models and effectively compete with them to regain market shares. Additionally, retail analytics tools can analyze customer solutions, competitor’s performance, and optimal store locations so that you can create offers that will beat your competitors.
Your competitors are smart; they are quick to adjust to market changes and adopt dynamic pricing to gain maximum profits out of the customers. Online e-commerce sites can serve as one of the best examples of dynamic pricing as they change their price on an hourly basis to optimize sales and increase profits.
Optimizing Supply Chain
Retailers can adopt the best pricing models, analyze competition better, and thoroughly understand the market trends – but if their supply chain is lackluster, their operations will be affected. Integrating supply chain services and applications to retail analytics platform including CRM and analytics systems help retailers partner with the right vendors and optimally manage their logistics.
Understanding Your Customer Better Than Themselves
When it comes to retail shopping, consumers more or less shop in recurring patterns. Therefore, retail companies can leverage retail analytics tools that utilize predictive analytics to estimate shopping preferences. With the help of such retail analytics tools, consumers’ likes, dislikes, brand preferences, and purchase patterns can be identified