By using retail analytics techniques, companies can recognize high-value customers and identify the best channels to market their products.
FREMONT, CA: Consumer demands are changing at a rapid pace, and companies must keep up with them. With an increasing number of retailers beginning to use sophisticated data, business strategies must be tailor-made for each store. As a result, the global retail analytics market is expected to double in size between 2015 - 2020, and reach a whooping net worth of USD 5.1 billion.
What is Retail Analytics?
It is the use of analytical data from different stages of the supply chain to create strategies that aim to increase return on investment and optimize the supply chain. Relevant data such as sell troughs, returns, inventory levels, and product movements are analyzed to arrive at the appropriate strategies.
Here are five trends in retail analytics to look out for in 2019.
Companies have begun to shift their focus from 'what has happened' to ' what will happen.' Predictive insights deal with predicting future trends and forecasting customer demands. It helps companies to remain one step ahead of its customers by providing an opportunity to place the right product at the right place, instead of reacting to the customer orders. These techniques help to avoid out of stock and overstock scenarios for products that are fast-moving and slow-moving, respectively. It improves the overall customer experiences and guides companies with the development and launch of new products.
Customer Behavior Analysis
With multiple interaction platforms for sellers and customers, like mobile, social media, stores, and e-commerce websites, observing customer patterns and trends is essential for companies to ensure their business. By analyzing customer behavior, companies can recognize high-value customers and identify the best channels to market the products. It also helps to increase customer acquisitions and customer loyalty towards the brand.
Big Data Analytics
Sales, marketing, and supply chain strategies today revolve around big data. By using real-time data, companies can get more accurate forecasts, achieve faster production, and improve customer support. According to studies, brands that attain more than 10 percent growth in a fiscal year invest twice as much as their competitors in big data analysis.
Improving Supplier - Retailer Relationships
The dynamic nature of the market today has led to tailor-made conversations between suppliers and retailers. Different strategies are applicable to different retailers, as market dynamics and demographics differ from place to place. A store by store analysis helps companies in better brand positioning, achieving the right product mix, and implementing the appropriate marketing strategies.
Customer Journey Analytics
Customers today can access different kinds of information using different channels like mobile, social media, and e-commerce. This has made decision making a more convenient process. However, it has also led to a higher level of customer expectations like consistent up to date information and products that are suited to their preferences and interests. These expectations can be met with the use of data-driven insights from customer profiles and their channel history. Monitoring customer activities helps in shaping products and services as per their needs and demands.