With the immediate crisis response of covid now easing, retailers are able to turn their attention back to innovation. They’re switching from ‘survive’ mode to ‘thrive’ mode, and finding that the lessons they learned in the pandemic are invaluable. The tools, techniques and technologies they applied to get through the crisis are just as pertinent now, as they re-focus on better customer experiences and more efficient retail store operations.
Retail data analytics is one such retail technology. Retailers used it during the pandemic to respond to covid requests, but now realise its broader potential. Retail data analytics can help retail businesses find innovative ways to make operational efficiencies, strengthen customer relationships and loyalty and deliver an outstanding shopping experience. By capturing data from a range of operational systems – inventory, retailer POS, marketing, promotion types, loyalty, supply chain movement, consumer demand – and pulling it all together, retailers can see patterns within their business, understand consumer behaviours, spot trends early and adapt rapidly.
Any retailer who doubts the value of retailer data analytics does not have to look far to see the evidence for its use. Research shows that there is a clear gap between retailers who use retail data analytics and those who don’t. One survey, for example, looked at retailers who have ‘a common set of tools and methods across the enterprise for accessing and analysing data’, and found that 80% exceed their business goals. In those companies who had the tools and also trained their staff in how to leverage data, overperformance rises to 88% of the cohort.
Retail data analytics is at the heart of personalised marketing, and pricing management – two key strategies which drive improved results. Retailers who offer a personalised customer experience get 20% better results than those who do traditional marketing. Those who use analytics for pricing management see a 2-4% improvement in margin and 1-2% increase in sales.
An effective retail data analytics system will draw in data from a wide range of operational systems, and can therefore deliver a whole host of insights to staff, including
When it comes to implementing retail data analytics, there’s a bit to think about. Here’s our top tips for planning for success:
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