The Significance of Data Analytics to Retail Success
A key tool that modern retailers have at their disposal is the huge data caches that accompany customer engagement in the digital age. This information sets you apart from the Arkwrights and Granvilles of the world, and hands you the power to enact improvements and generate profit based on the most specific of customer habits, trends, and personal details.
A recent survey by Alteryx and RetailWire of nearly 350 retailers and brand manufacturers found that 81% of participants gather shopper insights, which 76% of respondents consider to be critical to their commercial performance. Similarly, IBM found in a recent survey that 62% of retailers are satisfied with the ‘competitive advantage’ that these data hoards are enabling.
It is almost surprising that these percentages aren’t higher, considering the minute accuracy with which businesses can now inspect a variety of shopper trends, and while it is inconceivable that retailers aren’t using this data, the key is clearly in the detail.
Merchandising is no longer founded in conjectured prediction. The available details are critical to understanding how to overcome key issues, including customer conversion rates, personalising campaigns to improve the increasingly-important consumer experience, and lowering the cost of acquiring new customers. In a POS context, retailers can keep track of vital customer details like profit margins, basket sizes and sales trends. It is these features, when implemented successfully, which will drive sales and enable customer retention. Of course – technophobes, be calm – it is worth acknowledging that human insight is still key to actually understanding this data, as the wealth of information must be applied to real-life solutions effectively.
“To compete in a consumer-empowered economy, it is increasingly clear that retailers must leverage their information assets to gain a comprehensive understanding of markets, customers, products, distribution locations, competitors, employees and more.”
This article is not intended to serve as a cheeky advert for our Mauve software, which does indeed implement this huge wealth of data, by the way, but rather demonstrate just how incredibly vital this information is to ensuring profitable retail practice. Having the right data can help you serve your audience better, and it really is as simple as that.