At the risk of sounding like a stuck record: being more data-centric is one of the keys to retail success.
You can make better judgments based on retail analytics and hard facts rather than guesswork, resulting in increased profitability, higher customer satisfaction, and a more fantastic store overall.
The good news is that many firms in the retail business appear to have already realised the value of data. According to a poll of over 350 retailers and brand manufacturers conducted by Alteryx and RetailWire, 81 percent of respondents gather shopper insights, and 76 percent consider insights to be crucial to their success. The bad news is that while many retailers collect data, the majority of them do not successfully use it. Only 16 percent consider themselves experts when it comes to data mining, according to the research, while 24 percent and 60 percent, respectively, define themselves as “newbies” and “getting there.”
Becoming data-centric is much easier said than done, as we are all too aware. As a result, we’ve put up a list of pointers to assist you in gathering and using data in your retail operation. See whether you can implement these strategies in your business after reading about them below:
Use retail analytics to dig into historical data
Analysing your prior sales and inventory data can reveal useful insights and future action steps you can put into practise today. What were your best-sellers last season? Who are the most affluent customers? Which suppliers or designers were popular with your customers? The answers to these questions will help you make ordering decisions and promotions for your store.
Cream Cornwall, a homeware store in the United Kingdom, is one retailer that is making good use of historical data. Cream Cornwall generates retail analytics with Vend, and the tool has aided in their decision-making.
“We’ve been using Vend for over a year, and I love the reporting comparisons. It’s extremely helpful for us to look back at the high season and see what we sold, and then plan our orders based on that. “It’s priceless information for a retailer,” co-owner Rebecca Heane says.
Use timing to predict what your customers will buy next
Although it’s a cliché, timing isn’t “everything,” as the saying goes, yet it is extremely important when interpreting data.
When a customer first looks at or purchased a product provides insight into what they’ll buy next and when they’ll buy it.
Let’s imagine you’re a retailer of baby goods and apparel, and a customer has just purchased some garments for her three-month-old son. You might be able to estimate her needs in six months or a year based on that information, and then provide relevant product suggestions.
Enfagrow is one such company. When mothers and mothers-to-be sign up for Enfagrow’s mailing list, the business collects information including such their due date and baby’s age. The company then uses that information to send highly relevant emails based on the child’s age.
Combine online and offline data
Analysing both online and offline data will provide you with a complete picture of your customers’ shopping journeys. Remember that modern consumers use multiple channels on their path to purchase, so storing and analysing their data in silos will result in fragmented profiles of your customers, and you may miss out on key insights and opportunities.
When it comes to retail, Barneys knows the importance of consistent data. Woolsey told the Washington Post that looking at both online and offline client patterns revealed that many women who buy expensive jewellery in Barneys brick-and-mortar stores have already searched for it online.
You can see how Barneys would not have worked out that their web-browsing consumers eventually purchased offline if they had only looked at their online data, and they would not have obtained a full picture of their customers’ path to purchase if they had only looked at their online data.
Retailers who want to succeed in the future months and years must use data to inform their decisions. Yes, setting up the correct procedures and learning how to acquire intel will take some time, but the knowledge and insights you obtain will make it all worthwhile once you’ve mastered it.
What are your strategies for implementing retail analytics in your company? Let us know by Getting In Touch.