The aim of retail businesses is attracting new customers, selling more to each customer and retaining them. The retailer wants the right customer experience by providing the product at the right price. In order to achieve the objectives, retailers have started using so many technological tools in the stores that are built for improving the customers experience and are helpful for overall store level analytics.
Retail analytics is a process that majorly focuses on providing insights related to sales, inventory, customers and many more such data points to the retailers who running brick-and-mortar stores.
Retail stores run mostly on trends, so one cannot really ignore the relevance of data in retail. Trends can be short, medium and long term. So, the data gets quickly recycled in the industry. In order to predict the needs of customers and provide uninterrupted customer experience, retailers rely on lot of analytical tools.
We spoke to a great group of retailers all over the country and discussed the dual challenges of becoming relevant to changing consumer mindsets while driving profitable growth. Companies like V-Mart, BlueTokai, Nasscom, and many more are aligned to the fact that, consumers mindsets cannot be predicted just based on the sales data, as it can be misleading at times.
As Vedalabs, we provide multiple data-points through Video Analytics, which provide retailers a traffic count of the customers in their particular stores. Traffic counting and other analytical tools allow the retailers to compete in today’s fast-evolving market. In-store analytics is majorly a combination of AI and Sales data.
Now, you can surely ask, ‘How many retailers are focusing on analytics’?
Well, the Internet of Things (IoT) and artificial intelligence improve the performance of stores continuously. In a survey of nearly 350 retailers and brand manufacturers, presented that 81% of respondents say they gather shopper insights and 76% consider insights to be critical to their performance. The bad news is that while many merchants are collecting data, most aren’t using it effectively. According to the study, only 16% consider themselves experts when it comes to data harnessing, while 24% and 60%, respectively, describe themselves as “newbies” and “getting there.”
We believe that rather than guesswork, relying on analytically backed data will enable you to make smarter decisions toward higher profits, better customer satisfaction, and having a much more improved in-store experience for your consumers. Presently, retailers face cut-throat market competition. Keeping up with industry trends is essential to stay ahead in the race, especially in the brick-and-mortar business. Also, as a customer-centric industry, retailers are constantly under pressure to serve customers better and retain them for longer periods. And, it’s not so easy to satisfy customers and match up to all their expectations.
As Vedalabs, we provide you the solution that with the help of Artificial Intelligence and the other IOT technologies presents you the data that reflects the total footfall count, repeat customer count and demographical overview which will eventually help the retailer in various ways like store optimisation, personalized promotions that will allow them to gain maximum customer satisfaction and also be ready for the change in trends in the market and help them in making them efficient strategies
Another question is in your mind is, “In today’s digital world, where customers can compare and buy things online. Is it worth spending on all these in-store technologies ?”
Well, through these technologies we come back to the future of retail. Digital is bringing us back to the interactive retail experience at scale, through the combination of technologies like artificial intelligence, deep learning, and machine learning, as well as data analytics, builds one to one relationship with the customer.
As a retailer, you don’t have to understand artificial intelligence in depth. “You don’t have to know how it works. That’s irrelevant to you. You just have to know that there are tools that do things you weren’t capable of doing before that can now allow you to start making strategies according to the data.
With such data and insights, the business can be more descriptive and predictive. Let’s just discuss the benefits after investing in analytics.
Business needs money. To make money, business needs customers.
In this digital world, customers prefer to read reviews before going to the offline store to buy something. Thus by using analytics, the retailer can discover customer buying patterns and their behaviour to meet their demands and provide them satisfaction and make them come back to their store. For a long term relationship with the customer, you need to make customers satisfied.
- 90% of satisfied customers more likely to do shopping with you again. If their requirements are fulfilled and having a positive experience.
- 95% of customers with a negative experience will share their experience with people like friends and family, which damages their goodwill in the market.
By using analytics, retailers can offer the customer exactly what he wants and engage him most effectively. This, in turn, helps in building a positive brand image, gaining trust and developing long-lasting retail relationships. So it is mandatory to put the loyal and profitable customer in every aspect of the business.
Every retailer wants the right product at the right place at the right time.
One of the biggest advantages of adopting retail analytics that is optimizing their inventory. Through the analysis of customer buying patterns and their changes are trends, the retailers keep their inventory balance.
- It brings interaction with an inventory.
- As retailers know which product is not selling well in the store.
- So the retailer needs to predict the inventory i.e. manage the inventory cost or the changes in quantity.
- Having visibility into what you have and what you need is vital to the success of the inventory manager.
- It makes it easy to forecast stock requirements and automatically order popular items that keep customers coming back.
- It’s not possible to stock every item, however, there are ways to ensure the customer can always leave with the product they want.
- Relying on data, like historical sales and analysis of the impact of past promotions, helps retailers avoid overstocking and understocking.
- Understanding your inventory needs and ordering appropriately can be a huge win for controlling costs.
So, retailers need to stock up the product according to their customer behaviour. With the help of analytics, they can easily stock up the consumer inventories based on customer demand and market trends.
Consumer Behaviour Insight
Analytics allows retailers to study consumer behavior and understand their buying patterns. This is one of the biggest reasons that the retailer can understand buying patterns and consumer behaviour and take decisions accordingly.
They can use analytics to identify customer trends and changing preferences by combining data from different stores. By merging sales data, businesses can identify emerging trends and anticipate them better.
By building an understanding based on such behaviours, you can better target your customers. This means you’ll make better outreach efforts that are highly targeted for specific audiences, which in turn will improve results.
Customers are getting ads, messages, emails and other contacts to give offers and provide knowledge regarding the products. It is also a fact that many non-targeted customers ignore these emails, messages, etc.
By understanding customer’s behavior on the deepest possible level using vast quantities of data, retailers can figure out the best way to interact with them. With the data analysis, you can start to map out customers and their journeys, and then you can make strategies to control or at least influence this journey.
Customer loves when the retailers are giving attention and also offers personalized deals to them. But is difficult to find that personalized deals should be offered to which customer. In retail analytics, there is a technique through face recognition which shows the number of repeat and unique customers. Through this, you can find loyal and repeat customers and can easily offer the best deals.
Analytics also helps businesses to track down transaction histories and consumer preferences. It indicates what the customer wants, and allows retailers to offer similar choices at affordable rates, closing sales most effectively.
It is adequate to say that the importance of retail analytics is going to increase in the coming years. A number of large retailers and sellers have profited from using these analytics for some time now.
These are the benefits of investing in retail analytics. And all these benefits are offered by Vedalabs. As Vedalabs provides you analytics and through that data, you make the decisions for your chain stores. We provide you a platform where you can fulfill your customer requirements and make strategies for becoming great in the retail market. And we make your stores are more customer satisfactory and earn maximum profits.
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