Over the last decade, the retail industry has undergone a major evolution. The digital revolution has forced brick and mortar retailers to revisit their business strategy. The market is polarized, with some doing smart work with the data they have, but most doing little beyond MIS and reports.
Retailers are grappling with demanding customers who are more informed and discerning, thanks to new media and technology. This has led to a drastic change in customer preferences and behavior. The scope of retail analytics therefore has shifted from analyzing POS data to analyzing huge volumes of data that provide better understanding of customer behavior.
Whether it is about driving customer behavior or improving buying, pricing or benchmarking store performance – the opportunity to do exciting and impactful work has never been so immense.
In order to stay relevant and ensure continued success, retailers must scale up their analytics to achieve better product margins, better customer targeting, better product mix at a store level, data driven decision making around pricing and overall better return on marketing investment.
It enables customer facing personnel and marketers to have a single view of customers across channels and businesses. It reveals insights into customer behavior and enriches overall customer experience and loyalty. Solutions under customer analytics include Next Best Action, recommendation engine, loyalty analytics, response and prospect analytics, churn analytics
Helps to establish price elasticity’s, impact of promotions and markdowns. Also enables finance personnel and heads of businesses to determine profitable products, customers and services and allocate costs accordingly to improve profitability
- Optimize trade spends across categories in the portfolio
- Identify key brands whose promotions are helping in category growth
- Define pricing strategies for own / store brand
- Continuously improve demand forecasting for better management of supply chain
- Effectively manage distribution while minimizing stock-outs
- SKU velocity analysis