[FREE WEBINAR] Optimizing Manufacturing Operations Using Advanced Analytics and Simulations Book your seat!

retail companies Archives | Quantzig

Tag: retail companies

photography work space on top view

A Beginner’s Guide to In-Store Analytics

The rapidly-growing, competitive retail landscape has increased the need for customer analysis across different business segments, especially e-commerce. This is the reason why the demand for in-store analytics has gone off the roof. Today conventional retail businesses have started implementing in-store analytics aggressively to retain their customers. Due to this factor, in-store analytics is now n integral part of conventional physical stores.

At Quantzig, we understand the importance of in-store analytics in retail business. And to help companies in the retail sector to excel in the competitive landscape and stay ahead of the curve, our team of experts has curated a detailed guide to in-store analytics. This guide can assist companies to improve profitability and retain their customers significantly.

Are you finding it difficult to track all the cart and basket values in your store? In-store analytics may hold the key to success. Get in touch with our experts to know how our analytics solutions can help your retail business.

What is in-store analytics?

In-store analytics is the process of collection of customer data and applying them to operations of the retail store. This can offer actionable insights into their business on both macro and micro levels. Is it sounding too complex? But it is not, provided you have proper retail analytics solutions in place. A proper analytics dashboard offers data-driven insights that make all data easily understandable and quickly applicable. In-store analytics solutions provide pre-built reports that help retail business in identifying key metrics responsible for retail performance. Furthermore, this helps in decision making and devising an overall business strategy that is based on data-driven facts and not on assumptions.

Want to know more about why in-store analytics is important for retail business? Download our free supplement here:

What is in-store analytics important for retailers?

#1: Facilitates better pricing decisions

In-store analytics has the potential to analyze price sensitivity efficiently. It can offer better visibility to retailers into the factors responsible for fluctuations in price. Also, it helps in identifying the points that have a major impact on the volume of sales. Furthermore, this can help in generating additional revenue for the retail business and safeguard them from any future price fluctuations.

#2: Track conversion rates

In-store analytics plays a crucial role in helping retail businesses to make informed decisions by keeping track of factors leading to conversions which is the heart of retail analytics. Also, these insights assist in monitoring retail performance, understanding consumer behavior, and enhancing the shopping environment. Furthermore, advanced analysis combined with data obtained from all these sources enables retailers to improve marketing operations, drive sales and boost the productivity of retail staff.

Reliable data leads to smarter decisions. Our retail analytics solutions help companies to understand customers and their behavior. Based on our analytics solution businesses can obtain profound insights into the buying process of customers and their journey. The results, in turn, can help businesses to drive customer traffic, monitor customer journeys, and translate prospects into loyal customers. Request a FREE proposal to know more about our portfolio of services.

#3: Understand customer behavior

In-store analytics helps in understanding the behavior of customers. This can further help businesses to send targeted offers and content depending on the response of a customer towards the brand. Marketing operations become more efficient if marketing is done through a targeted approach. This has high chances of inducing sales and thereby, converting a prospective buyer to a loyal customer. 

Our retail analytics guide is here to help you improve sales and achieve higher profits. Download the free supplement now.

Benefits of In-Store Analytics

Benefit #1: Improves the shopping experience

Today customers are well informed, and they research a lot before making any purchase. A retail business if incorporate in-store analytics to their marketing operations, can identify buying patterns of customers and their buying preferences. Consequently, this can help in enhancing the marketing strategy and improving the shopping experience of customers.

Benefit #2: Enhances customer support service

If you are into retail business and want to improve your customer service, the most important way to do that is gaining insights into customer’s response towards your brand. Conducting surveys help but it is not the proper solution because sometimes the customer’s response is not genuine. Therefore, tracking and analyzing customer data can help more in improving customer service and in-store analytics makes this very easy.

Our in-store analytics solutions can help you see how the customer flow translates into conversion. Request a FREE demo to gain better insights.

Benefit #3: Prevents theft and burglary

For retail stores, shoplifting is one of the most regular problems that they face. In-store analytics can come to the rescue here. By leveraging in-store analytics, retail stores can identify the spots that are highly vulnerable to shoplifting. Also, the data from the in-store analytics dashboard can help retail stores to strategize their marketing operations and take key decisions in improving security at the store. Consequently, this can help in dealing with theft and burglary.

Benefit #4: Optimizes store performance through real-time dashboards

In-store analytics dashboards offer specific insights to examine the product placement in the store and the optimal floor layout. Also, it helps in identifying frequented and non-frequented areas in the store. The in-store analytics dashboard also offers actionable insights into conversion by section and traffic by section. Furthermore, it helps in identifying profit maximizing patterns and paths. 

Want to know more about the benefits of in-store analytics and how it can enhance your retail store performance? Request for more info below.

Get More Info Form

IR2

4 Common Visual Merchandising Mistakes that Retailers Must Stay Clear of

Visual merchandising is primarily concerned with invoking the sensory receptors of the target and potential customers. In today’s highly competitive retail scenario, elements of visual merchandising play a pivotal role in saving the business from losing customers to competitors. However, visual merchandising in retail is no child’s play. One wrong judgment in the elements of visual merchandising to use for your store could cost you big. Contact USFortunately, once you identify these common mistakes, they can be easily rectified:

Poor window displays

The window display of the store is one of the most integral factors that initially attracts a customer towards your store. However, not utilizing this space effectively could prove to be a grave mistake for brands. It is essential to include key elements of visual merchandising such as proper lighting, props, and color combinations in the store window. It should be also ensured that the window display is being changed regularly both in terms of the product and the props used.

Understocking or overstocking of products

Situations such as keeping too much inventory or not enough inventory could not only hamper your sales but could also result in bad visual merchandising. It is vital for retailers to ensure that their shelves are always optimally and neatly stacked. Whether a customer walks into a store looking for something specific or simply to see if anything sparks their interest, not having enough merchandise to make the right impression is one of the worst mistakes that retailers can make. Furthermore, though lots of choices are good, seeing them all at once creates visual clutter and a feeling of being overwhelmed. To avoid product glut, retailers can establish and adhere to a planogram which determines what goes where, in what quantity, and when.

bannerqz

Lack of continuity

If the elements of visual merchandising on the window display lack continuity with those inside the store, chances are that the efforts might go in vain. Retailers must ensure that the products that they promote outside the store are easy to locate inside the store. It is also essential to use elements of visual merchandising based on the theme in areas including the point-of-sale systems, in order to forge links to other products.

Overload of promotional message

Customers undoubtedly love promotions and discounts, however going overboard with promotional messages in display could be a bad idea for retailers. Too many promotional elements in visual merchandising tend to give the store shelves a cluttered look, prompting the customers to become indecisive or lose interest. Getting the right balance between promoting the products and the number of promotional displays is the way to ensure optimum sales.


Know more about Quantzig’s analytics solutions for the retail industry

Request Proposal

 

ir10

How to create a perfect omni channel strategy for business

What is omni channel? 

Omni channel is primarily aimed at providing customers a seamless experience irrespective of how and where they are shopping from. An omni channel experience is a multi-channel approach to marketing, selling, and meeting the customer’ needs in a way that creates an integrated and cohesive customer experience irrespective of the platform used. However, it is important to note that an omni channel strategy is different from a multi-channel retailing. In multi-channel retailing, businesses use platforms such as website, blog, Facebook, and Twitter in order to connect with customers. However, a major drawback of this technique being customers lack a seamless experience and consistent messaging across each of these channels. Omni channel retailing, on the other hand, involves each platform and device a customer will use to interact with the company. This knowledge is then usContact USed to create an integrated experience for the customers. Companies using this an omni channel strategy tend to align their messaging, goals, objectives, and design across each channel and device.

Key benefits of implementing an omni channel strategy

omni channel

Improves sales

The advent of new technologies has forced companies to think strategically and adopt newer ways of doing business. So, those with stock visibility and fulfillment options across various channels stand a better chance of improving sales when compared to companies sticking to a single channel of business.

Ensures better data collection

Omni-Channel strategies harness various data streams which enable better and more accurate data collection. It proves useful in tracking customer behavior and gaining meaGet More Infoningful insights through business analytics. This, in turn, makes critical inputs while formulating engagement plans that increase the probability of impulse buys through predictive analytics.

Enhances productivity

An omni channel strategy can provide companies with tools and information that can help improve their efficiency.  Considering the major role technology plays in our lives today, smartphones and tablets are a great way of capturing feedback and customer data into loyalty-building elements.

Tips to create a good omni channel strategy

Know your audience

The first and foremost criteria for building a good omni channel experience for your customer is to have a clear-cut idea of who and where your target customers are. This would help provide a better picture on the channels that you need to focus on. It is essential to identify which platforms your customers frequent, and which devices they use the most. In case it is identified that a majority of your customers seldom use a particular platform, then it is advisable to reduce your investment on this medium.

Ensure smooth transition

If a company has established its presence both on online and offline platforms, it is essential that they ensure a smooth transition between both the platforms. The main aim behind this is to ensure a smooth transition between transactions taking place on both online and offline platforms. For instance, some top companies have recently introduced business models where customers can plRequest Proposalace the order online and pick it up in the brick-and-mortar store rather than waiting for them to be shipped to their homes. This provides an enhanced omni channel experience to customers and saves them a lot of time.

Make every touch point shoppable

One of the key steps in building a perfect omni channel strategy is to make every touch point shoppable. One of the remarkable examples of this is how Disney does it with their mobile apps, theme parks, and websites. Disney ensures that every time they provide an experience to their customers, they have the opportunity to make sales. If a customer adds a product to their cart from your website, it needs to be in their mobile app too. If they are using Facebook, it is important to suggest them products based on that previous product viewing. These deep, symbiotic connections between channels help companies to run promotion campaigns on social media, drive traffic to their website, have users explore how others use their product through Pinterest, and check out the products directly from there.

Inter-departmental coordination and agility

Siloed organization structure proves to be a major roadblock for omni channel implementation. In several organizations, different functional teams including sales, marketing, product development, PR, and customer service operate independently of each other. So, companies must consider restructuring traditional roles as this can put the responsibility for the customer experience on more than one or two departments. This would allow each team to understand how it fits into the omni-channel puzzle in relation to others. It also sets clear expectations that can streamline communication between teams.


Know more about Qunatzig’s analytics solutions that can help companies provide better omni channel experiences

Request Proposal

IR37

How Can Geospatial Analytics Help Uncover Surprising Insights on Omnichannel Retail?

What is geospatial analytics? 

Modern technologies such as locations sensors or GPS tracking, mobile devices, and social media facilitate companies to collect “geo-referenced” data about practically any event. Geospatial analytics uses this data to build maps, statistics, graphs, and cartograms, which make complex data relationships more understandable. Geospatial analytics help companies to anticipate and prepare for possible changes that may occur as a result of the changing spatial conditions or location-based events. Advanced geospatial analytics also allows retailers to quantify the actual economic value of each of their stores across various channels.Get More Info

Geospatial analytics in omni channel retailing

Over the past several decades, retailers have been leaving no stone unturned for mining different data sets such as market trends, demographics, and point-of-sale information. But now, with advanced technologies and the availability of new types of data, retailers can gain a better understanding of the markets and consumers. Retailers can now analyze not just the quantity of customer traffic but also the quality of this data.

Omni channel retailing is now becoming a ‘hot trend’ among retailers. Retail companies are scrutinizing the interplay between online and offline customer decision journeys. Taking an omnichannel view of store performance allows each store to be rightly credited for all the sales in which it played a role, be it for offline or online sale. In doing so, retailers are getting a more accurate picture of each store’s total economic value and will be able to make better decisions about their omnichannel retailing presence. 

Some of the key benefits of geospatial analytics in omni channel retailing include:

Know where your customers live, work, and shop

With the help of geospatial data, companies in the omni channel retailing space can garner a better understanding of where their potential customers reside and they specific shopping habits and patterns. This would help make informed decisions on the site-selection, marketing, and product assortment for specific areas.

Determining store locations

Deciding on the store locations for a business is a crucial task, which involves intense planning and brainstorming since wrong decisions in this aspect could cost a company big money. By understanding key factors such as competitive presence, potential customer demographics, and access to supply chains, companies can make better omni channel retailing decisions so as to what would work better for each locality.Demo

Making real-time decisions

Geospatial analytics provides up-to-the-minute data on customer and vehicle locations, assets, sales, and environments into maps and analysis. This gives companies the time and space to decide on the changes to be made for resource allocation on a real-time basis.

Understand key factors of purchase

Retail companies use data-driven analysis on how and where customers interact the most with their brand. This would help them further strengthen their marketing and inventory decisions. Furthermore, they can also reduce or eliminate their investments into efforts that do not give the desired results or are seen to not create a satisfactory connect with the customers.


Know how Quantzig’ s retail analytics solutions can help your business

Contact US


 

customer segmentation analytics

5 Retail Marketing Trends to Supercharge Your Business This Season

Shopping is soon going to be all about long-lasting and unforgettable experiences for customers. Customers will be immersed in a world of choices, convenience, and fun-filled shopping experience. Retailers are now relying excessively on technology, not only to promote their in-store offerings but also to effectively reach out to their potential customers. Also, retail companies now have access to large databases of customer details. The recent marketing trends in retail are aimed at leveraging this data to target customers based on their shoppinGet More Infog patterns. Here are some of the marketing trends that brands must incorporate as a part of their retail marketing strategy to put out a tough fight for competitors in the market:

Retail marketing Trends 2018

Voice search as a shopping assistant

Voice assistants such as Google Home, Alexa, and Siri are slowly becoming common household names and are consequently one of the most popular marketing trends to watch out for. These voice assistants are now an integral element of the retail marketing strategy of many prominent brands.  For instance, in 2017, Monoprix, a leading French retail brand partnered with Google Home to launch a voice application that allows customers to create a shopping list by simply speaking to a chatbot that recommended products based on the user’s buying habits. This ensures a faster path to purchase for customers.

Product customization

Product personalization or customization is the new fad among customers. They want unique products that are designed to suit their taste or means something to them. Personalization is among the popular marketing trends that we have on our list this season. This retail marketing strategy is a great way to attract the customers who place more importance on the experience rather than just the physical items or commodities.

Website and app partnerships

The rise in technology has taken shopping away from just the in-store experiences to digital screens. One of the common marketing trends we see today is brands partnering with websites or apps that are focused on promotions, deals, and loyalty. Furthermore, retailers are found to get maximum returns on their investments from general deal websites and apps, which provide a comprehensive digital marketing solution and drive brand awareness and revenue through a multitude of channels.Demo

Point of sale to point of experience

Forward-thinking retailers are giving immense emphasis to the customer experience. Brands have realized that consumers expect more than just shopping from retail stores today. Hence, customer experience is winning an important position in the retail marketing strategy of several prominent brands across the globe. Proving customers with experiences that associate them with enriching opportunities and increase store visits and revenue are some of the retail marketing trends to watch out for in the near future.

In-home services, delivery, and consultations

Convenience is an important factor that most customers consider while making their shopping decisions. Marketers have identified retail marketing trends such as free delivery and in-home services to appeal greatly to modern customers who prefer getting things done in the comfort of their homes. Several retailers are using this as a retail marketing strategy to engage customers by connecting with them in their homes.


Discover how Quantzig’s retail analytics solutions can help your business stay abreast with the changing marketing trends

Contact US


 

customer segmentation analytics

Why In-store Analytics in Retail is the Key to Make Your Bricks Click

For brick and mortar retailers, this is no easy time. The boom in online retail has left the sales of physical stores at a standstill.  The market space which is becoming increasingly digital is compelling retailers to turn towards advanced analytics techniques to ensure that their business survives the competition. Moreover, juggling between offering customers the right products at the right prices along with an exceptional customer experience can seem to be a daunting task for retailers. Adopting in store analytics could be the answer for companies in the retail industry to overcome this hurdle.

Contact US

What is in store analytics?

In-store analytics in retail provides meaningful insights from customer behavioral data. Retailers leverage several techniques such as the use of smart carts with location beacons, pin-sized cameras installed near shelves, or the store’s Wi-Fi network to identify the number of shoppers entering the store, their movement inside the store, and the key areas/aisles that they visited. This can even be used to extract basic demographic data, such as gender and age group. In store analytics can connect the dots between consumer, retail store, and buying decisions based on the data collected.

Why is in store analytics in retail important?

Competing with online stores is no cakewalk for brick and mortar retailers. Ergo, it is imperative for them to collect as much data possible about their customers and their buying behavior. In store analytics in retail gives businesses clear-cut solutions to the following conundrums:

Pricing decisions

Pricing is one of the trickiest tasks for retailers. Most retail companies invest in resources that churn out tons of in-depth data on sales and pricing. Out of this, only a few succeed in turning this data into actionable insights. Retailers often end up making knee-jerk reactions that could have adverse effects on their business. For instance, in the case of an increase in production cost, they tend to raise the prices in direct proportion to the manufacturing overheads without understanding its impact on sales volumes. In store analytics helps retailers perform a price sensitivity analysis, which gives a better visibility about when and by how much should prices go up or down. This can generate additional revenue for the retail company and safeguard them from price hikes by the competitors.CTA QZ

Understand consumer behavior

Customer behavior is highly dynamic and often hard to track. In store analytics provides retailers with a better understanding of the customer behavior. A form of in store analytics in retail called the mood analytics uses CCTV camera images to monitor the facial expressions of a person. This can help retailers send targeted content and offer them in store depending on how a customer is feeling. For instance, if the mood analytics reveals that the customer is confused about making a purchase from a particular category, then the retailer can promptly send an offer message to the customer’s mobile that is valid if the purchase is made within a particular time frame, say one hour.

Visual merchandising

Visual merchandising is key for retail companies to attract customers’ attention. But how would they decipher what would work for their business and what wouldn’t? In store analytics can offer real-time data on the effect of visual merchandising on the customers in the store. This can help retailers to experiment with different visual merchandising techniques and eliminate the ones that do not bear fruit.


To know more about in store analytics trends in retail

Request Proposal


 

IR31

Analyzing the Incremental Value of Investments Through Marketing Mix Modeling for a Gourmet Food Retailer

What the Client Wanted: Analyze and optimize the incremental value of investments through marketing mix modeling.

The Outcome: The solutions offered by the experts at Quantzig enabled the gourmet food retailer to establish an optimum marketing mix model. This engagement entailed the implementation of a robust marketing mix model to help the gourmet food retail client understand the impact of marketing campaigns on their overall ROI.Request Proposal

Gourmet Food Retail Industry Overview

Over the past few years, the class of foods consumed by the global population has undergone a massive transformation. The growth of the specialty retail segment, urbanization, rise in disposable income, and a surge in economic growth have greatly impacted the gourmet food segment. Such factors have not only catalyzed the growth of the gourmet food retail segment but have accelerated the strategic shift from traditional, low-cost food products to premium upgrades such as French cheese, Swiss chocolates, and exotic fruits and vegetables. Owing to such factors, leading food retail firms have now realized the importance of analyzing and optimizing their marketing investments to ensure they are on the right track. This has also prompted leading players to invest in developing robust marketing mix models to identify the factors affecting the incremental revenue.

Food Retail Industry Challenges:

  • Growing competition from non-traditional food retailers: Players in the food retail industry are witnessing growing competition from online and non-traditional food retailers. Also, leading gourmet food retailers have now realized that the online food retailers have a more perceptible impact in areas such as store sales, foot traffic, and basket size.Request Solution Demo
  • Increasing health awareness: Consumers across countries are now focused on improving health and wellness, and as a result, they are increasingly leveraging food to effectively manage and avoid health issues. This has both positively and negatively impacted the gourmet food segment by paving the way for new opportunities as well as challenges. To counter such challenges, food retail companies are focusing on implementing consumer wellness programs, nutrition guidance programs, and retail dieticians.

About the Client:

A food retail industry major, specializing in the gourmet food segment.

Client’s Challenge

To analyze the incremental value of investments, the client – a leading food retail industry player  – approached Quantzig. The client wanted to devise an appropriate marketing mix modeling strategy that integrates both traditional and digital channels through the effective allocation of marketing budgets.

Also, the gourmet food retailer wanted to leverage Quantzig’s vast experience in the food retail industry to their benefit and devise an effective approach to marketing mix modeling to better understand the impact of their marketing campaigns across their business segments.


Benefits of our marketing mix modeling solution

Gourmet Food

To gain in-depth insights into our marketing mix modeling solution for food retail industry players

Contact US


Business Impact

With the help of Quantzig’s marketing mix modeling solution, the gourmet food client was able to calculate the relative ROI of innumerable marketing decisions, which helped them in developing an optimum marketing mix. The solutions offered also brought about several improvements in their business performance. Marketing mix modeling also helped them quantify the impact of individual marketing activities on several factors including price perception, revenues, and volume.

Marketing Mix Modeling Insights

Marketing mix modeling acts as a powerful tool for gaining breakthrough insights that positively impact business outcomes. If managed well, marketing mix modeling (MMM) can offer a significant competitive advantage to organizations across industries. Also, marketing mix modeling plays a key role in improving revenue and profit margins by offering new predictive insights on marketing campaigns.

Quantzig’s marketing mix modeling solutions are aimed at creating a single point of truth, which enables enterprises to work toward a common goal. Also, it is essential to conduct an exhaustive study of successes and failures prior to implementing a new marketing mix model. However, organizations with little or no experience in marketing mix modeling should consider involving analytics experts who can help them successfully navigate through their challenges to devise an appropriate marketing mix model.

Quantzig provides analytics solutions that help optimize marketing decisions. Our market expertise enables organizations to adopt the right strategy to develop a marketing edge that is required to develop winning products, convert traffic into customers, and enhance sales.


To know more about how our marketing mix modeling solution helped the food retail client

Request Solution Demo


Related Posts:

IR35

Back to the Future: 5 Predictions on How the Retail Industry Will Evolve

New technological developments and the latest retail trends have redefined the meaning of ‘shopping’ by creating unique customer experiences. Today, shopping is no longer a monotonous task for consumers with retailers leaving no stone unturned to enhance their shopping experience. Furthermore, the retail industry’s steady migration to online e-commerce platforms has made it vital for brick and mortar retailers to give their customers a reason to come back to the store. Consequently, several retail companies have increasingly turned to modern technologies to help them revolutionize the future of retail. The retailers who thrive in the next decade will be those that re-imagine and align their stores with the digital age. Based on the retail trends and developments in retail technology, industry experts at Quantzig have curated some of the key retail industry trends that will redefine the future of retail: Contact US

End of long-checkout queues 

Bidding adieu to long checkout queues will be one of the most prominent retail trends that will go mainstream in the next couple of years. The future of retail will look more promising than ever before by helping avoid queues and providing customers with a hassle-free shopping experience. Retailers are also looking at the feasibility of payments made via a virtual shopping cart rather than an old-fashioned checkout line. Once this is rolled out to retail stores and becomes fully operational, long queues in checkout counters will soon become history.

1

data and analytics

Types of Retail Stores You Will Find Today

If you compare the retail scenario now to that of the early 80’s and 90’s, you will notice a considerable difference in the type of retail stores that exist. One of the main reasons for this change is the rise of the marketing era. Retailers soon began to realize that giving customers differential experiences and offerings is a great way to increase profits. This gave rise to different types of retail establishments that we see today. Depending on the consumers’ behavior and manufacturers’ abilities, there are various types of retail stores which exist in the market. Each of them differentiates themselves from the rest based on the products they offer and thRequest Solution Demoe manner in which it is offered.

7 types of retail stores 

Department stores 

This type of retail outlets is one of the most complex types of establishments that offer a wide range of products. It can be compared to a collection of smaller retail stores managed by one company. Department stores are well-known for offering products at different pricing levels and the variety of products that they offer. Some of the common examples of department stores include Macy’s, Shoppers Stop, and Kohls.

Specialty store 

Specialty stores are one of the popular types of retail establishments which focus on one or two specific categories of products. They are known for having a very narrow product line. A characteristic trait of customers of specialty stores is that they are generally less price-driven. These outlets specialize in a given type of merchandise like men’s clothing, children’s clothing, and sporting goods.

Supermarkets 

Supermarkets are one of the most common types of retail outlets. They are large, departmentalized, self-service stores that specialize in food and some non-food items. FMCG products are the main focus in such stores when compared to consumer durables. Product assortment is given great importance in supermarkets as the products need to be displayed in such a manner that the customer gets attracted to them and they sell faster.

Convenience stores 

Usually located in residential areas, convenience stores offer a limited range of products at premium prices due to the added value of convenience. They are generally small establishments that have limited depth in their product line. Such outlets are known for giving super-fast service with a focused approach.

Discount stores 

As the name clearly suggests, discount stores are one of the most popular types of retail outlets that give considerable discounts on the products that they sell. Discount stores compete on the basis of low prices, high turnover, and high volume. One of the best examples of this type of a retail format is Walmart whose tagline itself says ‘Everyday low prices”.

Hypermarkets or superstores 

Hypermarkets are one step ahead of supermarkets. These stores are huge in size and have many different categories under their belt. These stores are generally not found in malls, rather they are the size of malls themselves. Popular examples of this format of stores are Tesco, Asda, and Costco.

For a visual explanation on the types of retail, check out this video on YouTube: 


To know more about the trends and challenges in the retail industry

Get More Info


 

IR23

4 Retail Industry Challenges That Predictive Analytics Can Solve

The retail industry today has more access to customer data than ever before. However, this data doesn’t always translate into successful outcomes. Today, retailers are more hard-pressed to convert user customer information into actionable insights that give them an edge over others in attracting future sales. But in most cases, retailers are unsure of how exactly to put the available data into use. What retail companies need is to find a way to gain actionable information that will help them track not just what’s currently selling, but what will sell in the future. Predictive analytics is the ideal solution to this. Predictive analytics is concerned with the micro-level (i.e. down to a specific individual) rather than macro-level predictions that are based on averages or generalities. By using predictive analytics, retail industry players can take into account each individual and evaluate their purchases in real time to accurately predict what they are most likely to buy based on their specific buying habits. Apart from this, here are some crucial retail industry problems that can be brought under control using predictive analytics:Request Solution Demo

  • Inventory management           

When retail companies have a poor inventory management system in place, it can often result in loss of sale situations for the business. This, in turn, will create a picture of lower demand for certain items, making future order predictions based on that past data inherently inaccurate. Savvy retailers use advanced capabilities like predictive analytics that provide real-time data to move inventory where it’s needed before its late.

  • Pricing policy

Predictive analytics is a highly useful tool in setting retail prices. This technique allows companies in the retail industry to set prices after taking into account all possible factors in real-time. Besides, considering competitors’ pricing, using predictive analytics, retailers can take into account everything from real-time sales data to information about whether to optimize prices for a particular point in time.

  • Revenue forecasting

Forecasting revenue based on historical sales and customer data may not be a practical method anymore. This is mainly because there are also chances that a few of those customers could have switched to competitor brands. Predictive analytics generates more accurate forecasts based on the predicted buying habits of new customers of the brand.

  • Catching the Straying Customer 

Bringing back a loyal customer who appears to be disengaging from your brand is an arduous task indeed. Especially, in today’s market scenario where customers are spoilt for choice. With the help of predictive analytics, retailers can understand which customer is straying, which customer has the potential to be a long-term user, and which shopper will make his next purchase.

  • Improved customer service

As predictive analytics helps companies in the retail industry to know their customer in a better way, it would help them in an appropriate marketing plan. Similarly, before talking to the customer, it is important to know about their basic interests likes and dislikes. Retailers can help them make informed decisions, perform better social media marketing and answer on-site queries by leveraging predictive analytics.


To know more about the trends and opportunities in the retail industry

Get More Info


Related Insights

Top Trends: Demand Forecasting in the Retail Industry

Four Types of Retail Analytics Shaping the Retail Industry

Why Is ‘in-store’ Analytics Key to Unlocking the Retail Industry’s Potential