3 Ways to Get More Out of Your Data through Promotional Analytics
Have your retail promotion strategies not been yielding the results you thought they would? The truth is, there are very slim chances of getting desired results when taking a shot in the dark while investing in the retail promotion. However, there are ways you can take your sales through the roof and clear out your stocks the next time you strategize a promotion. Here are the 3 sure-shot ways to leverage the power of promotion analytics in retail to understand the underlying reason for the jump in sales and make the most out of your insights.
1. Monitor the Sales Data step-by-step
Keeping a track of the ups and downs in the sales data, understanding the underlying reason for additional sales that occur due to a marketing or promotional campaign is crucial. Retail promotional analytics enables monitoring of incremental sales data and compares them with your expected results to give you a clear idea of how much growth in sales the marketing campaign has contributed to. While it may seem like an unimportant task to do, there are reasons behind monitoring your data. A perceived increase in sales isn’t always what it seems to be. Paying close attention to boost sales is crucial in making sure your promotional expenditure is not going to be vain and that your promotional strategy doesn’t just seem successful, but it actually is.
2. Never neglect the customer behavior:
The best tactic for gaining advanced insights into your retail promotion analytics is to take a holistic approach towards data and frame it in the context of the consumer’s experience and behavior, trends in the market, and psychology. For instance, if you find out that the discount you set on a product is selling well in certain stores but salvaging the sales of your previous best-seller, this might be an indication that your shoppers are not willing to give out the amount you actually deserve. This could hurt your overall success with them. If you do a promotion that performs extraordinarily well for one product but fails to stress test it in another product before going all in, you may find that the shoppers don’t react the same way.
Use analytics to improve the forecasting process
Forecasting plays an important role in placing the orders right. A retail company must be able to anticipate how many products are going to be off the shelves to place the order correctly. Companies can leverage the power of real-time retail analytics to identify and update the points at which the inventory can run low so they know exactly when to restock.
Forecasting is an important aspect of placing the right-sized orders; If you can’t anticipate how much is going to move off the shelf, how can you plan order successfully? The problem is that many sales managers only engage in surface-level forecasting based on past results. Tracking the inventory in real-time instead of forecasting based on the past results so you can improve your ROI. With a data-driven approach to forecasting, companies can identify incorrect forecasts quickly and prevent potential losses in sales before they happen.