The building blocks of the modern digital world is undoubtedly data. Most products and services we use collect data and analyzes it to better themselves or to ensure our satisfaction. The same can be said wholesale and retail businesses.
Having access to useful data analytics can save money, make money, and even prevent the loss of money in certain circumstances. As such, it is a very important tool to ensure the success of your store.
So, let’s take a look at some of the reasons why data analytics matters to your store.
1. Predicting Sales
The more data is collected on sales, the clearer any patterns or trends in purchasing behavior among your customers becomes. For instance, you can see data-based, tangible proof that a certain product sells better during a certain interval of the year.
Being able to get a very clear view of sales in the past and present allows data analytics to make possible predictions of future sales. This is a prediction based on past trends, with the assumption that they will continue. Though there may be anomalies such as breakout products or a product suddenly losing public favor, the predictions are generally reasonably accurate.
Analyzing sales data can help you see how certain factors have affected sales, so you can predict how they will affect sales in the future as well.
2. Getting to Know your Customers
Most modern shops collect data on the customers who shop there. While this data is not super in depth, it is enough to gain a deeper understanding of your customer base.
Data analytics based on demographics can clue you into the buying behaviors of your customers based on their age, gender, financial status, and other traits. Knowing this information can help you order the products that your customers really want, instead of simply following market trends from other businesses.
This data can also be used to cultivate good relationships with your returning customers.
3. Helps with Cross-Selling and Upselling
Another area where data analytics can make a difference is in cross-selling and upselling. The purchasing patterns shown through data analytics can be very helpful in this regard.
By knowing what kinds of products, a certain customer buys over a period of time, your staff have an easier time recommending higher quality products (with a price tag to match) or similar, complementary products.
Cross-selling and upselling can earn your shop more profit and also help clear some products that may not get a lot of sales.
4. Helps Set the Right Price
Sales is a competitive industry. Stores compete in terms of prices, quality of products, variety of products, and much more. One of the major influencers to customers looking to make a purchase is price.
Setting the right price can be a delicate matter. This is due to the fact that you must think about cost and profit, along with the market price while setting your price. Set it too low and you lose money, despite potentially high number of sales. Set it too high and you lose money due to lack of sales. That’s where data analytics comes in.
Analyzing data on what people are willing to spend on certain products and when certain products are in higher demand, you can set the right price to maximize profits.
These are just some of the advantages data analytics can bring to your store. With so much information being presented in a comprehensible way, you will be armed with the most recent and updated knowledge with which to make informed decisions.
And while we are on the topic of data analytics, let us introduce you to Ewity. Ewity is an easy-to-use, easy-to-learn, cloud-based POS system, loaded with features. One of the features is the ability to generate a vast variety of data analytics to your exact specifications.
So, why not head on over to our website and see what you can do with the power of data analytics and Ewity for the low price of ABSOLUTELY FREE!