In 2017, the world was putting out 2.5 quintillion bytes of data per day, and the amount of data we produce will continue to grow.
As businesses, having access to key data will allow for review of retail data analytics that will directly shape decisions with an impact on the bottom line.
In a field like grocery shopping, there are many applications for data. The importance of Big Data continues to bring attention to itself as time progresses.
To learn more about Big Data retail applications and what to look out for the future, continue reading this article.
Retail Data Analytics That Shape Your Shopping Experience
You didn’t think you received that coupon for the brand of toilet paper which is the competition of your normal roll randomly, did you? Retail brands are using data to target potential customers specifically. This method has proven to be effective and is only one of the ways the data collected and analysed that has helped retailers reach and influence customers.
With the average profit margin for grocery store retailers at 1%, careful planning is required to decrease waste by moving products quickly. Since grocery stores are volume stores, there is a lot of data collected every day. Having a proper data management system is key to keeping data in order for analysis and future use.
Determining How Customers Will Shop in the Future
Data is easier to access now than ever but managing the data and making sense of it can require serious effort. When you learn how to collect and analyse data properly, your company can determine how customers will shop in the future. Understanding the trends in customer shopping will allow you to position your store in a way that will appeal to the customers as their behaviour evolve.
Data analysis can help you decide where to place products in the store. Putting products that are normally bought together in the same area helps customers find the products they need easily. Instead of having to search the other side of the store, calculations are done to ensure placement of combination items in an easy to access location.
One thing all data is pointing to is that stores need to make the shopping experience more interactive. The in-store experience should be enjoyable. Customers should also be allowed to shop online.
Some people will always continue to shop in the store. The ability to touch and feel will bring people in-store, but others are more than happy to give up grocery store aisles and self-checkout lines.
While the products grocery stores are selling are important, the experience is becoming more of a factor when people decide where to shop. Long-term customer loyalty should be focused on through giving special perks and rewards to shoppers. Rewards that are creative beyond the discounts that come from a loyal rewards card will start to become the standard.
Compelling patrons to get off their couches and come into the store can’t be achieved with the offer of lower prices. Offering a shopping experience that is enjoyable and relaxing can be a major draw for customers.
Retail Analysis Helps with Personalising the Shopper’s Journey
One of the parts of a great in-store experience is personalising. Data gathered from various sources such as purchase history, transaction data, social media and more will be coupled together to help give customers that personal feel.
Having a personalised experience is shown to increase customer loyalty. Customer loyalty is an important part of revenue generation and using data to increase customer loyalty is a great use of resources.
Why Is Data So Important to the Grocery Industry?
Retail is one of the most competitive spaces in business. When you are making decisions, you can’t go off historical information. You need to have real-time data to back your decisions.
- Operations Decisions – Data can help improve operational performance by monitoring store-level demand to ensure popular items are in stock. Understanding promotional performance will allow you to adapt your marketing, forecast and replenish tactics. You will also be able to notice seasonal trends and opportunities to cross-sell.
- Strategic Decisions – Retail companies often have fragmented data. When information is pooled, it is very powerful for strategic decision making. Having a single, trusted source of data will allow you to move forward confidently. You will know you have gathered all necessary information for your decision.
- Customer Experience Decisions – When data is used to anticipate shopper needs, it makes it easier to provide a seamless customer experience. The more you know and understand about the customer, the better decisions you can make.
Making decisions with a lack of data can cost your business a lot of money to make sure you are gathering and analysing real-time data on a regular basis.
Retailers are using their data in different ways, but one of the strategies that has proven to be effective is the strategy of Kroger. Kroger has generated billions of dollars in revenue through its coupon program. They use over 850 points in their algorithm to ensure their customers get the perfect coupons.
Retail Software Solutions Support Data-Driven Decisions
Knowing your numbers is a key part of making decisions. A retail dashboard helps you understand your data to make strategy and oversight easier.
There are endless possibilities for the use of these software solutions. The best way to see how they work and how they can help your company is through using them.
Get a free trial or demo of a software solution. This can help you see how your company will use the software. You will see how it will benefit your company in particular.
Make Your Life Easier By Working with a Professional Company
Don’t let data management and analysis keep you up at night. Working with a company that specializes in your industry can keep you from frustration.
Instead of stressing out over retail data analytics, contact us and schedule a free demo to see how we can help your business.