Posted On: November 16, 2018, By: Prabhjot Singh1257 Views
In the era, where everything a person wants to buy is just a click away, there, it is getting difficult for offline businesses to retain customers. This increased digitization have made retailers realize that every time a customer visits their store, they have to offer something more than a product. This is where retail analytics steps up to help them.
Retail analytics is playing a crucial role in the digital transformation journey of offline businesses. Analytics helps to quickly spot and evaluate new possibilities by providing actionable insights to retailers about consumer behavior, demand, sales etc.
Retail analytics helps in optimizing business processes and maximize revenue. With analytics, retailers can easily track employee activity and check whether they adhere to mandatory SOPs or not.
Analytics helps in identifying gaps in operational processes and provides data which aids businesses in eliminating unwanted procedures so as to enhance operational efficiency.
Tesco, a British multinational groceries, general merchandise retailer and the ninth largest retailer in the world measured by revenues used big data to better launch personalized campaigns. Also, the predictive analytics of historical sales and weather data improved the stock-keeping system that saved 100 million pounds of Tesco in stock that otherwise would have ruined.
Analytics helps in measuring footfall of the store and in turn, this data aids retailers in preparing rosters on a weekly/monthly basis to schedule shifts of employees.
Measuring footfall helps retailers to efficiently manage the queues so as to reduce the waiting time of visitors and enhance customer experience.
Retail analytics helps in identifying key areas where most of the conversions take place. It analyses sales data and provides useful information to retailers about the shelves people spend most of their time shopping. In this way, retailers can deliver targeted promotions and discounts to increase sales.
Retail analytics also aids in providing information about the products that are star-performers so that the best selling products of the store do not go out of stock.
Staples, an American multinational office supply retailing corporation, uses big data to process up to 10 millions of data transaction every week and forecasts daily and weekly sales across its retail outlets in US. Staples used these predictions to target market promotions based on geographical area and was able to reduce its overall promotion costs up to 25% with the use of retail analytics.
Research shows that store atmosphere leaves a distinct impression on customers.
Maintaining a good store ambiance is highly essential if you want your customers to revisit your store. Retail analytics helps businesses keep a real-time check on the hygiene outlook of their stores as well as staff so as to see if their employees adhere to mandatory SOPs or not. Analytics helps retailers to understand how in-store temperature affects conversion rate.
Setting up a retail business requires a huge amount of capital. From maintaining inventory to human resource costs, there are umpteen of operational expenses that retailers incur. Therefore, retail analytics helps in figuring out those areas of business where operating cost can be reduced.
Studies show that a 1% decrease in operating expenses can increase profitability by up to ten times more than the corresponding increase in revenue.
With retail analytics, you can take active measures to optimize energy consumption.
For helping retailers in understanding the buying behavior of the customers to aiding them in optimizing the business operations. All thanks to retail analytics!
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