Today’s retail environment is more competitive than ever.
Buyers are comparing prices within seconds, researching your brand within minutes, and posting reviews that have the potential to cause a domino effect that may be good or bad for your brand and its sales. Furthermore, in retail businesses with an indoor positioning system installed, buyers can easily navigate in store and locate specific products.
It’s no longer enough to have the best location. In order to win customers and sales in today’s retail industry, you’ll need to deliver a consistently great customer experience, personalize your marketing messaging and your customer’s shopping experience, and to ensure you’ll always have the hot items in stock at the right price. There’s only one way to do all that: retail data analytics.
Let’s face it, retail isn’t an art anymore. It’s a science, which means that you need to get serious about big data analytics or you and your brand will be left behind. The entire retail industry is moving towards putting data first, and with good reason. There are several powerful benefits to using data in a retail environment. Here are the biggest advantages:
Data Analytics in Retail Make for a Smarter Shopping Experience
With increased expectations from customers and competition heating up, prioritizing customer experience is more important than ever. It’s no longer sufficient to offer the cheapest price or the best return policy. You’ve got to ensure that you leave customers satisfied at every interaction. This means you need to create a smarter, more satisfying shopping experience to retain and attract new customers.
Because data analytics ensures that in-demand items are always in stock, adjusts prices in real time and sends relevant and timely promotions, customers will benefit from a smarter, more pleasant shopping experience.
Create Predictive Models and Trends
The most successful retail brands use big data to not only measure their current situation, but to see into the future. By combining enterprise data with other, relevant information, retail businesses can:
- Create models for the items your customers are likely to buy.
- Learn about new sales opportunities by identifying unexpected trends from social media and other channels.
- Improve inventory management by utilizing greater visibility into supply and demand.
Businesses that use these retail data analytics for creating predictive models and trends will benefit from increased sale value, better margins and more.
Price Optimization Models
Amazon and other large retailers have ushered in a new era for retail due to their real-time pricing optimizations. Amazon in particular, has been troublesome for many business owners as their products can change prices upwards of 10 times a day! Couple this with the fact that consumers are now able to compare items in mere seconds and price optimization is no longer an option, it’s a must.
By using big data, you can adapt your prices in real time depending on your current supply, the current demand, and anticipated trends. This means that you’ll be able to improve margins, increase sales, and (best of all) compete with Amazon and other large retailers.
Gain a Deeper Understanding of Your Customers
One of the most powerful benefits to using retail data analytics is the ability to gain a deeper understanding of your customers. By analyzing customer data, you can learn the best mediums for contacting customers, when/where they like to receive marketing materials, and how to tailor their shopping experience.
By segmenting your customer base, you’ll have a better grasp of purchase patterns and will be able to increase sales per visit as a result.
In addition to personalizing the shopping experience, you’ll be able to customize marketing efforts as well as customer service. Customers are much more likely to respond to (and even look forward to) personalized marketing offers. In fact, personalization is so important when it comes to marketing, that many retail brands lose customers due to generic emails.
Data analytics in retail aren’t just a competitive edge anymore. It’s necessary to compete with other retailers. By using big data, you’ll:
- Increase sales per visit (by better understanding your customers)
- Optimize prices just like Amazon does, increasing sales and profit
- Increase sale value, margins and more with predictive trends and models
- Create a better shopping experience for customers, increasing brand loyalty