A large variety of brands leverage retail analytics to help streamline operations. Since retail businesses worldwide are looking for that elusive competitive advantage, analytics can provide key data points and metrics that inform smarter decision-making at the executive level. While analytics can benefit almost any brand, the retail industry is especially dependent upon historical data to improve conversion rates, track consumer behavior, and improve the customer experience.
So, how do retail companies leverage analytics at the right time and in the right way? To understand that, it’s important to familiarize yourself with the essentials of retail analytics. If you’re looking to benefit your shoppers, suppliers, and supply chain through smarter decisions, this is what you need to know.
What is retail analytics? Big data is leveraged to provide real-time insights into inventory levels, customer demand, customer satisfaction, and sales data in the retail sphere. A retail analytics platform can remove a lot of the guesswork through the deeper insights it provides. A retail store can leverage this analytics data in several key ways. This is especially critical for customer service improvements, inventory data management, and enhanced efficiency for business processes. While these analytics are beneficial for a brick-and-mortar store, online retail shops can take advantage as well to benefit their shoppers.
Retail analytics tools rely on data mining to spot sales trends and track sales numbers and shopper data. A retail analytics solution provides actionable insights into customer needs. You can also set preferences for different metrics that can help you denote your action steps. With these meaningful insights at your fingertips, you have the potential to identify patterns in customer behavior and boost store sales. It can be a key component of overall retail success. So, how exactly can a retail analytics solution benefit a retail shop?
If you’re still navigating manual data collection efforts, you’re probably having difficulty tracking the number of sales at your brick-and-mortar locations. This is because in-store retail analytics goes far beyond surface metrics. Between data mining and discovery, it’s easier to spot margins for key metrics in your retail data and sanitize it with analytics software. This powerful tool is most often used for merchandise procurement and management. You can use trend analysis and consumer behavior to spot your ideal customer’s preferences and adjust merchandise levels accordingly and develop promotions. This can even help you set up your store layout in a more effective way that prioritizes key products and services for simpler access.
The right product combined with data from your POS system also benefits the store managers. You can use your point of sale’s key metrics to track store performance and consumer behavior. These algorithms can help any small business spot trends and store performance growth. This can help when you interface with advertisers, develop a customer loyalty program, and craft a more robust social media strategy that relies on your tableau of information. The bottom line is that your store retail analytics are essential for small business growth. Whether you visualize data with a graph or tableau or rely on internal dashboard tools, this is essential for your ongoing success.
If you’re not currently using store retail analytics, you may be doing your business a disservice. With the benefit of Internet of Things devices, you can track metrics remotely, make quick adjustments, and use trend forecasting to your advantage. The right dashboard metrics can help you increase foot traffic, boost digital sales, and hit target KPIs. It’s well worth your investment if you want to stay competitive in a busy market.