Why Is Data Analytics Used in the Retail Industry ?
Data analytics is all about the science of analyzing raw data to make valuable insights. Many of the processes and technicalities are automated into mechanical algorithms that work on raw data for our understanding. Globally, data analytics is applied in all stages of the retail process, by the big retail players. It is used to help enterprises to improve on profit maximisation and discover new sales opportunities. Retailers are considering leveraging the power of data analytics in this constantly changing world by focusing on new innovative ways.
Let us now understand what are the top 5 ways data analytics can be used in retail
- Analysing Customer Behaviour – Data analytics helps to track customer behaviour which help retailers understand what their customers like and how and in what way they are shopping and where they like to receive promotional offers. Using this type of data, retailers optimize their marketing efforts and create offers that suit the customers in the form of personalization and retention that ultimately improves sales and lowers the operational costs.
- In-Store Tracking – In regards to brick and mortar and omni-channel retailers, a focus to improve in-store experience is vital. Tracking helps to improve merchandising by using data analytics. To do so, mobile applications, beacons and sensors are used to study the movements of the customer throughout the store. After data is collected it is analyzed for insights in regard to how to focus on customer attention, deliver customer experiences and what makes the consumers come back to the store again and again.
- Superior Promotions – In the retail industry, improving conversion rates is vital as online e-commerce continues to be skyrocketing. With targeted promotions and predictive analytics retailers can uncover what type of products and offers are popular. With this strategy of experiment and analyze new ways to capitalize on the customers interest can be explored further
- Focusing on Customer Journey – Focusing on customer journey and overall analysis of their entire experience with any type of brand is important. Right from communications to in-store and online store experience, purchases and its related interactions with respective ads, achieving a full view of this enables to increase the chances of closing a sale and reduce the risks of cart abandonment. Furthermore, retailers can understand the best and innovative way to guide customers to complete the buying process.
- Supply Chain and Operational Improvements – By using data analytics , retailers are focusing to gain a competitive advantage. The data is used for almost everything right from product tracking to improved quality and from real time inventory management to better forecasting. Making sound decisions at the operational level not only helps to bring down the costs but also improves overall supply chain.
Data analytics also helps retailers in price optimization, future performance prediction, demand prediction, achieving highest return on investment, forecasting trends and identifying customers from time to time. To know more information and for any queries regarding Data Governance please feel free to contact us at +1 888 840 0098 and you can email us at firstname.lastname@example.org we will be happy to assist you. You can request a demo to explore Amurta’s Data Insights Platform by just clicking this link