The perks of retail analytics
Merchants are always looking for the next tool that will help them generate more revenue, deliver better service and gain an advantage over their competitors. One of the most critical aspects of modern-day eCommerce operations are retail analytics. Big data plays a critical role in helping merchants understand more about their customers, suppliers and everything in between. The benefits of integrating analytics and metrics are manifold.
1. It’s all about the customer
When retailers are talking about analytics, the first thing that comes to mind is the customer. Many merchants say they know their target audience, but the fact is that achieving in-depth understanding is something that can be greatly enhanced by analytics.
Research conducted by Babson Executive Education highlights how analytics can improve customer relationships. The right data enables merchants to develop a better understanding of their customers’ needs, which in turn can inform marketing and promotions, product selection and inventory management that revolves around a store’s specific customer base.
2. The right price, the right product
Inventory and product management is at the core of any retail business. How do you know what products to sell and at what price customers will buy them? This isn’t guesswork – it’s determined by facts and numbers. Retail analytics can help businesses finetune their ability to manage stock.
As the source notes, the right data enables businesses to “balance inventory with demand so you’re never out of stock or carrying excess inventory” and “charge exactly the price that customers are willing to pay at any moment.” Part of retail success is knowing when and where to make the right investments, and analytics allows merchants to do just that.
Software solutions provide retailers with the tools they need to collect, monitor and improve their operations from customer data. By effectively utilizing all the information available at their fingertips, merchants are better able to run a profitable business and minimize wasted resources.