The Role of Data Analytics in Retail
We live in the modern digital age where data is everything. Collecting and analyzing data can reveal patterns in human behavior that can be useful for many fields.
Those that can collect and analyze relevant data definitely outpace their peers in every field. Their success is a direct result of their willingness to adjust their strategies based on the data they receive.
In this article, we will take a look at the role of data analytics in the retail industry. We will look at which areas it benefits and how.
1. Offers Customer Insights
One of the ways in which data analytics can be useful in the retail industry is by offering insights into customers.
By collecting and analyzing data on their purchase history, their frequency of visits, and other such details, you are able to spot patterns in the behavior of your customers. You can predict when certain demographics shop or what types of products they prefer.
This type of information is very useful when planning promotions or ordering in new products.
2. Offers Supplier Insights
Just as you must know your customers, you must also know your suppliers. Picking the right ones in terms of cost and quality is very important if you want to build customer trust in your store.
When ordering from suppliers, it is important to know which suppliers can guarantee good products, which ones are timely with their deliveries, which ones can guarantee safe delivery, and so on. Collecting data on customer reactions to products or their frequency of purchase can let you glean some insight into which products they prefer and from which suppliers.
Another reason to know your suppliers well is to avoid legal ramifications from faulty products.
3. Improving Customer Service
The insights offered by data analytics can be quite useful in improving customer service as well.
Knowing a customer’s past purchase history can be very helpful in engaging them in conversation or recommending them new products. A greater understanding of customer spending habits can also help attract new customers who fit the same demographics.
Your staff will definitely thank you for any insight into the customers they deal with daily.
4. Optimizing Pricing
Knowing when certain products are in high demand and thus, can be sold for higher prices can be the difference-maker when the position of market leader is being fought for.
Insights into demographics, their purchasing habits, their preferred products, etc can be instrumental in setting the right price for the right product. This information can help you and your staff anticipate demand and price products accordingly.
Setting the price randomly or on a whim without any information to base it on is simply a gamble.
Data analytics is a very important aspect of the modern business environment. Every industry from hospitality to retail to production is taking advantage of data in some way. Perhaps it is time for you to welcome data analytics into your store.
One easy way to do so is with Ewity. Ewity is our easy-to-learn, easy-to-use, cloud-based POS system. It comes with many features designed to help you and your staff with your store. Ewity also provides curated data analytics based on your specifications.
If you’d like to learn more about Ewity, please head on over to our website today!