To inform each and every business decision and plan, a data-driven company utilizes insights gleaned from data analysis. Specifically, businesses in the retail sector can leverage data to make more strategic decisions related to customer interaction, product development, pricing, and so much more. Also relatively menial information such as the location of a product on a store shelf can be affected by insights informed by data.
In the retail and consumer goods sector, the digital revolution has driven global change, while the challenges may be overwhelming, the prospects for sales and development are too large to ignore. Customers now expect to be able to shop 24/7, discover and purchase items on various online and offline platforms, check for ideas and inspiration on the social media channels of brands, shop more and more on mobile devices, and demand more customized experiences when they visit a store. Today, more than ever before, retail brands need to become more relevant than ever before.
The power of data analytics can be used by retailers to make informed business decisions, also known as using big data. Although data analytics does not predict with 100% accuracy, its use can assist businesses in the decision-making process to reduce risk and uncertainty. Being able to predict consumer behavior is a powerful tool for any retailer, but data analytics are crucial particularly during the holiday season.
How Consumer Data helps retailers.
- The organization is able to learn more about its customers through technology, retailers can understand and predict the behavior of buyers using customer data, such as online and in-store preferences.
- Data collected can be leveraged to deliver related deals, incentives, and products to consumers. Insights into this activity can be seen by data tools, and prediction tools can forecast what and where they will purchase. With this data, retailers can prepare promotions for each form of customer strategically – existing, new, etc.
- Reduce the extent of customer turnover by designing first-time customer campaigns that promote return visits.
- Identify the most frequent clients for easy targeting via built-in segmentation. If retailers know their returning customers are likely to purchase at a certain time, they may run personalized promotions to drive them down the sales funnel with tips and discounts.
- When they are able to shop and easily complete purchases through various networks, consumers enjoy greater convenience.
Data-driven retailers are the future of the retail market.
Day by day, the retail industry is becoming more dynamic. Retail owners are still facing tremendous challenges because they are unable to incorporate knowledge into the center of their business. As a consequence, they are losing out on an ocean of data analytics opportunities and are unable to adjust the way they operate.
Think about how much effect, better data, enhanced decision-making skills, and increased advertising productivity can have on your revenue and overall bottom line when preparing for your holiday sprint. What does a conversion rate rise of 5%, an Average Order Value (AOV) increase of 10%, an increase in gross margins return on investment of 30% or make an average transaction value of 12% increase during the holidays, mean for your company? The holidays, let alone if you are an online retailer, are stressful enough. Let us help you reduce the stress and make this one of the best seasons ever for retail.
By investing in data analytics, a company will not only drive impressive results this holiday season but well into the new year. After all, retailers are looking for long-term results and, by offering added value to customers during the holiday season, they stand a better chance of earning new customers and turning them into loyal repeat purchasers well into the new year.