With cut-throat competition prevailing across markets retailers can’t afford to alienate their customers in modern times. Hence it has become a necessity for retailers to gain real-time and practical insights to comprehend pulses across market niches.
Lately, retailers have begun to realize the potential of retail analytics and below are the five main reasons that describe why.
1. Figure out Consumer Behavior
As per a study in the US, 96% of people search for products online while 65% of purchase takes place offline. Probably a vital reason to invest in big data and retail analytics to segment consumers based on their buying behaviors and potential.
Insights gained from customer segmentation fuel retailers to identify customer needs, preferences, churns, market trends, etc, and fabricate solutions in an appropriate manner.
Data analytics in the retail industry can exceptionally be a perk for the e-commerce business as it enables tracking and evaluation of customer details like most searched items, abandoned cart items, added to cart items etc.
2. Personalized Marketing and Selling Strategies
Marketing and Selling strategies are the backbone of retailers. Even a minor error can cause major concerns. While today’s millennials & Gen-Z customers are self-centric and cautious about individuality. Retailers are having a tough time in reaching out to customers successfully. According to Adobe’s report, 64% of GenZ shoppers and 72% of Millenial shoppers expect personalized experience from brands.
By means of analytics, retailers are able to breakthrough ancient and inept strategies and create personalized strategies to communicate to the right customer at the right time and through the right platform. Further to this, retail customer analytics helps reduce customer attrition and improve acquisition.
3. Streamline Pricing
It’s been a constant battle between businesses and customers when it comes to pricing. While the right price has been a myth for customers and an elephant in the room for retailers. Retail business analytics provides in-depth knowledge to streamline prizing and offers, as per customer’s purchase potential.
4. Inventory Management and In-Store Optimization
The retail analytics dashboard makes it simple for retailers to identify downsides in processes and potential opportunities to focus. Optimizing inventory and in-store operations based on these data-driven insights help improve customer experience effectively.
5. Enhance Digital Experience
Customer experience is closely knit with Digital experience in this day and age. Leveraging big data analytics in the retail industry empowers retailers to provide cutting-edge digital services. This not only improves the customer experience but also builds an emotional connection with brands. So, retailers can worry less about strengthening customer loyalty and brand image now.
Future of Retail Analytics
Technology advancements like NLP, emotional AI, and speech analytics etc. are more likely to recast retail analytics for the upcoming decade.
While the digital landscape is constantly evolving and customer needs growing more specific. Retailers can successfully engage with customers, avoid relationships going cold and offer compelling services by leveraging different types of retail analytics from relevant retail analytics companies.