What is retail analytics?
Retail analytics is the process of using analytical tools to provide analysis of business trends, patterns, and performance in the retail industry. Retail business analytics allow you to leverage data-driven insight from your business and your customers to improve the customer experience, increase your sales, and optimize operations.
How to use retail analytics
Retail analytics can deliver actionable intelligence to positively inform every aspect of your retail business — from sales and marketing to supply chain, inventory, and customer behavior. Retail analytics tools can help you identify your most valuable customer cohort, as well as their changing preferences, so you can more effectively develop strategic marketing campaigns. With the help of retail data analytics, you can identify products that sell best, forecast sales and future demand, and better control cash flow.
Retail analytics examples
Retail analytics tools can support your efforts to improve operational performance and customer experience. Here are four examples of how retail businesses have successfully leveraged retail analytics to enhance decision-making and increase market share.
Leveraging data to optimize the customer experience
Streamlining your data-gathering and analysis process can help measure user engagement and refine the customer experience. For instance, a company known for its fresh take on the makeup industry wanted to better interact and connect with its customers. A retail analytics solution helped them to better interact and connect with their customers.
Streamlining relationships between data and people
To be a leading online shopping destination for style, you need to be able to understand and appropriately react to customer behavior as it happens. A retail analytics solution help build streamlined relationships between data, employees, and customers to improve customer experience and operational performance.
Gaining a 360-degree view of customer needs
Retailers need an easily shareable and accessible single source of truth to make decisions that impact the health of their business and assess customer needs. A well-attuned retail analytics platform offers a 360-degree view of customers’ needs and data to strategize more customer-considerate products, marketing, and customer service.
Delivering self-service, real-time access to data
As a retailer’s business grows, so does the need to scale the reporting process to understand better how to reach the right consumers at the right time. A retail analytics platform provides self-service, real-time access to shopper data and seamlessly maps internal and external data for employees, delivering a clear view of analytics for all.
Benefits of retail analytics
Successful retail organizations leverage insight about their customers, products, and operations derived from retail analytics tools to make better decisions around marketing, sales, and operations. With retail analytics, you gain a single source of truth about your customers, their buying preferences, and their online and offline engagement with your brand. Retail analytics is especially important for e-commerce retailers who want to increase brand awareness and enhance digital advertising results.
Gain insight on customer journey and behavior
As your customers interact with your brand across channels, retail analytics can help you understand their behavior all along their buying journey. This insight can help you build stronger relationships by informing the types of offers and experiences you provide.
Enhance customer experience
When you leverage the power of retail analytics, you can more easily get insights about customer tastes and preferences. That information will help you enhance their experience with your brand in-store and online, serving to attract and retain a more loyal customer following.
Anticipate demand and other important trends
Retail analytics tools provide the insight you need to understand customer buying behavior, so you can forecast and plan for future demand. This data can then inform how to price and promote products or services to generate more revenue, and how to optimize the supply chain.
Improve and optimize in-store operations
Retail analytics deliver practical insight to help you improve all areas of in-store operations. With analytics, you can identify inefficiencies and opportunities for improving and standardizing processes that enhance the buyer experience, as well as anticipate demand and optimize stock, inventory, and staffing levels appropriately.