Data analysis is the key to success
Not long ago, to collect data on customer behavior, stores started loyalty programs, and consequently adapted their marketing campaigns and strategies. Since then, the retail industry has made great progress, realizing the value of Retail Intelligence technologies.
As the commercial sector becomes increasingly competitive, it is important for retailers to tap into their past experience as well as apply the results of analyses derived from BigData Analytics solutions, with the aim of further strengthening their business.
We live in a world where consumers are looking for instant gratification and expect a variety of new digital experiences and personalized services. Thus, competition is not the only business driver that forces retailers to change; they should also be agile enough to better serve their younger customers and improve their user experiences.
Today, almost all retailers have already moved to the cloud or are about to do so. This migration offers many benefits in terms of cost and storage space offered by the cloud. Even in the retail sector, it is essential to have a clear cloud strategy to address every business challenge.
The best cloud strategies have a strategic combination of one or more of the following parameters:
1. Customization and time-to-market
With a multitude of engagement channels and a competitive landscape, every consumer expects a personalized sales experience. Customization is based on data that is an integral part of gathering information on customer preferences, stock levels, production capacity, suppliers and more. Retailers now offer consumers the ability to design and customize items, thereby creating differentiation in a crowded market and opening up new (and valuable) revenue streams. Data analysis allows a “do-it-yourself” approach for consumers, providing a landscape of data without limits.
- Know your client
The most successful retailers are those who have an intuitive understanding of what their customers want. In the digital age, data plays a crucial role, but their voice could be misleading. It is important to understand what is really important for customers and adapt offers accordingly.
- Dynamic prices
Dynamic pricing, which has been famous for decades in the air transport sector, is gaining popularity also in other sectors. We have seen companies like Amazon and Uber customarily adjust their prices in real time, thanks to the insights gained from customer behavior and other external sources. For retailers to adopt dynamic pricing, they must have a 360-degree view of both their customers and their competitors. This requires a tightly integrated data network between the physical and digital properties of the retailer – physical stores, online and social networks – to obtain the required data and make policy decisions.
- Improve the supply chain
If personalized shopping experiences are essential for customer satisfaction, product quality and punctual delivery are equally important. Analytics allows retailers to get better visibility of their logistics and supply chain operations, helping them to identify bad habits that cause delays. By correcting these anomalies, retailers can bring the right product to the right customer at the right time.