Retail AnalyticsStaying in step with your shopper using Retail Analytics
The retail industry is rapidly evolving. Not only are customers expecting a robust and fully connected shopping experience, but retailers are flooded with new technologies and digital developments to help make those expectations a reality. A prime example of this is the ever-growing world of retail analytics. Below, we’ll cover the basics of retail analytics, best practices for utilizing retail analytics, and how partnering with the expertise of Aptos can keep you continually in step with the industry.
The Basics of Retail Analytics
Retail analytics provide insights into everything from inventory, customer profiles, sales, and other key data points that inform business decisions. It’s a broad concept that is actually made up of several smaller fields. Think of it as an accurate, holistic, 50,000-foot view of a retail operation, made up of many granular, highly detailed areas of data. Retail analytics allows retailers to make better decisions, make more accurate predictions, and most importantly, deliver the retail experience shoppers now demand.
Essentially, the Retail Analytics field is focused not just on parsing data, but also defining what information is needed, how best to gather it, and most importantly, how it will be used.
By prioritizing the process as well as the data, companies can put retail analytics to use to uncover stronger insights and be in a more advantageous position to succeed when attempting to predict business and consumer needs.
By going beyond mere data analysis to delve into data mining and data discovery, it is possible to deliver actionable insights for both the short- and long term.
By harnessing sales data analysis, retailers can identify and segment their ideal customers using more attributes than ever, including channel preferences, price sensitivity, buying behaviors, influence and socio-economic characteristics.
Retail analytics allows retailers to create a more accurate snapshot of their customer. This turns target demographics into micro-targeted demographics and casual shoppers into truly loyal customers, who feel their experience is truly personalized.
Uses for Retail Analytics
Retail analytics has the power to improve almost every aspect of a retail operation. Examples include:
Retail analytics merges sales data with social media analytics, browsing behaviors, conversion rates, lost sales and other consumer data to provide retailers the most up-to-date and accurate information on consumer preferences, trending products or behaviors and evolving preferences.
One of the key benefits of retail analytics are the opportunities it gives retailers to optimize the way they procure inventory. Predictive tools and software allow retailers to bring emerging trends and historical data together to make better inventory purchasing decisions and eliminate wasted space and inventory by only ordering the products customers desire, in the most accurate quantities for the lowest possible overhead costs.
Harnessing the power of retail analytics allows retailers to create marketing campaigns that better resonate with their customers. Large scale trends and more focused insights combine to paint a highly detailed picture of each customer, including purchase history, preferences and overall shopping habits.
Making the sale and delighting customers with Retail Analytics
Relying on retail analytics and hard data rather than guesswork enables you to make smarter decisions toward higher profits and increased customer satisfaction. Here are some examples of how retailers can integrate retail analytics into their operations to increase sales and delight their customers:
To maximize the effectiveness of data, it’s important to compare and contrast different metrics. By layering metrics together, retailers are able to gain deeper insights that work together to illuminate solutions.
For example, analyzing transaction count and gross traffic can deliver an accurate customer conversion rate. It can also uncover peak sales hours or responses to discounts or coupons.
A small piece of data such as when a customer purchased a product can provide retailers with the ability to predict what a consumer might want next, allowing the product mix and marketing to match that upcoming need. A new parent who buys formula will likely be looking for other products that match their child’s growth. A new homeowner may make predictable purchases based on the age of their home, season, and other home products they have purchased in the past. Retail analytics allows retailer to collect all this data, layer it, and create actionable and timely insights.
The power of retail analytics is driven by technology: analytics are not spreadsheets. Analytics allow retailers to recognize the validity of their own insights while informing operational staff how to be more efficient and confident in their work. Sales Associates can be empowered with trend or purchase data, schedules can be built around peak traffic times, and the entire enterprise can work towards attainable and optimizable goals. This creates a better working environment, better productivity, and a happier staff.
Aptos Enterprise Analytics:
Retail Analytics through the Power of One.
Once the decision to move forward with a robust retail analytics program has been made, it’s important to choose a partner who is in lockstep with current industry trends and can move rapidly as it continues to evolve.
Aptos Enterprise Analytics allows retailers to consolidate, analyze and leverage detailed front- and back-end retail data from across the enterprise. This comprehensive solution reveals rich, user-defined profiles of what’s happening in each area of the business; it illuminates new opportunities, shows the outcomes of changing conditions, and how to put it all into action.
Aptos Enterprise Analytics elegantly manages your data requirements by seamlessly consolidating and layering huge volumes of data from disparate systems into a meaningful, role-based view of the business. This results in more reliable information, reduced costs, increased agility and faster execution.
Available for deployment in the cloud, Aptos Enterprise Analytics provides retailers with a single solution and a sustainable competitive advantage preparing them to meet the demand of their customers both today and tomorrow.