How Analytics Will Drive Retail Promotions For the Next Generation
The retail business landscape is experiencing a huge transformation that cannot be matched in recent history. This change is happening rapidly, driven by the demanding, ever-evolving customers and also due to the shortening of the trend and product lifecycle. These rapid changes are making things extremely difficult for retailers as they are finding it hard to stay relevant to the rapid transformations.
Meanwhile, the avenues for traditional store growth opportunities are also going belly up while newer avenues for growth like localized assortment, online retail, and international expansion are becoming more and more competitive by the day.
In this highly competitive retail business environment, merchants are relying more on retail analytics rather than their instincts to make the right business decisions. Analytics helps predict the indicators of growth.
Retail analytics can help unlock newer pockets for expansion and growth based on their extensive research and analysis. By leveraging the capabilities of the retail analytics platforms merchants can devise better advertising and promotion strategies that are best suited to their target audience. This will help them focus on their target market and make the most of their activity's online audience base.
As retail businesses are increasingly leveraging the capabilities of automated technology and business analytics in retail to support their decision-making, newer challenges, however, have cropped up that threatens to plague the vision of active technology adoption in retail businesses. Talented and tech-savvy merchants are increasingly adopting traditional mindsets when it comes to retail promotions. This greatly limits the possibility of the business evolving. The legacy technology system further hinders the merchant’s capability to make better decisions that are imperative for a business. Moreover, the restricted mindset coupled with limited time may force many merchants to focus just on their daily activities, thus restricting them from thinking about long-term growth and expansion.
In this blog, we successfully churn out a road map for new-age retailers to help address the pressing questions that arise while planning about the growth and expansion of their business.
1. Automation Will Impact The Merchant’s Role
The new-age realtors would be required to assess their capabilities to become successful merchants. They would need to incorporate the new changes from within their pool of talent. While automation can guide merchants towards quick insights, this will also pose a question on the ability of the merchant to interpret the insights and effectively implement these insights to accomplish their business goals. This would require crucial problem-solving abilities, higher analytics capabilities, and a significant push to a forward-facing, proactive mindset.
2. Customer-centric Approach
A seamless, omnichannel, and customer-centric approach is crucial to engage customers across different platforms. Retail businesses need to base their approach on gauging the customer mindset. As your target audience increasingly fluctuates between different channels, the retail business should find different methods to make sure that different business channels work together to provide a seamless shopping experience to their customers. Retail data analytics can provide you with better insights into customer behavior. This will help you plan better promotional activities to provide a holistic shopping experience across different channels. Most customers expect consistency of products and services across different channels, but they do appreciate some variations when they are presented rationally. They offer them the products and services as per the channels they are shopping more often.
3. Tools And Systems Require More Attention
Tools and systems will become an integral element of the daily activities of retail promotions. As the pace and complexity increase, the retailers will realize the difficulty in applying ad-hoc solutions to gain better results. They would need sophisticated solutions to streamline their ability to create proper insights to focus on critical strategic elements, rather than showing a knee-jerk reaction to the chain of events.
4. Encourage Organizational Success
To create a better merchandising organization, the retailers would need to be more agile, rooted in retail data analytics, and digitally enabled. Business analytics in retail will help businesses create a retail culture as well as a performance management system to promote the necessary changes in retail merchandising. Retail analytics platforms play an important role in driving retail business promotions. They provide detailed insights that will help you create a customer-centric approach to your business to drive business.
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