One of the keys to achieving retail success is to be more data-centric. Relying on retail analytics and hard data rather than guesswork enables you to make smarter decisions toward higher profits, better customer satisfaction, and having a more awesome store overall.
The good news is that it looks as though many players in the retail industry have already recognized the importance of data. A survey by Alteryx and RetailWire of nearly 350 retailers and brand manufacturers found that 81% of respondents say they gather shopper insights and 76% consider insights to be critical to their performance.The bad news is that while many merchants are collecting data, most aren?t using it effectively. According to the study, only 16% consider themselves experts when it comes to data harnessing, while 24% and 60%, respectively, describe themselves as ?newbies? and ?getting there.?
Improving Engagement through Personalization:
With the proliferation of the internet, there is an immense focus on increasing human interaction on digital spaces. To bridge the gap between customers and businesses and to improve interaction, content marketing plays a crucial role. When you inject personalization into your content marketing strategy, you can identify the needs of different customers and customize your content for each visitor.
smart algorithms enable you to obtain insights on customer purchase history, pattern, preferences, page views, interests and other forms of engagement to create a single customer view. Predictive Analytics adds another value; you can foresee what your customers next actions is!
?Building Targeted Campaigns
Analyze customer data using digital technology and personalize your marketing tactics accordingly. An effective campaign demands a great deal of time, patience and planning. Predictive algorithms collect and analyze data from various sources such as demographics, market insight, response rates and geography in addition to customer insights together. Designated missions will lead retailers to achieve higher change rates.
McKinsey report also shows us that targeted campaigns can deliver 5 to 8 times the ROI on marketing spend and lift sales 10% or more.
A company that can afford the initial losses caused by predatory pricing has an unfair market advantage in the long run. Investors see such extremely low costs as a good way to increase market share and then to raise prices and create equally extreme profitability further down the line.Predictive pricing analytics collate demand, product pricing history, competitor activity and inventory levels.
Autocomplete and predictive search, often used interchangeably with terms such as autosuggest, query suggestions, and search-as-you-type, are important for driving retention and conversions. This is largely because they help users find relevant results faster, thus reducing the bounce rate due to common issues such as user confusion, distraction, or the inability to find products or contents because the search engine can?t parse the query
?Retail Location Selection
Finding sites with growth opportunities is a struggle. Finding retail sites that ?position stores in the market place to capture all available traffic, while minimizing the cannibalization from existing stores is a struggle.? Most site rejection at this stage focus on access, visibility, and real estate and energy costs, which are factors that a community has little, if any, control over. Predictive Analytics can be used to forecast the potential revenue for a selected store location based on demographics, property market, competitive activity, market conditions, customer purchase power, purchase behaviors etc
Anticipating Demand and Inventory Management
Predictive Analytics likewise track financial markers, advancements, limits and distribution between stores to enhance stock administration and production network. This permits retailers to assign the right items to the perfect store at the ideal time and keep away from item squander.
It tends to be an enormous advantage to retailers and empowers associations to design their business in each angle and reaction rapidly to the market changes.