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Why Data Analytics are vital for retail companies

As a retailer it is so important that you get your offer to the customer spot-on. The aim of every retailer is three-fold: retain your existing customer base; attract new people to your business and sell more to each customer. The solution to this challenge is a simple one: offer customers what they want at a price they accept. The important elf understanding your customer base cannot be overstated and this is where data analytics plays such a big role, no matter what the size of your business. The simple fact that retailers must accept is that information is power. Analysing that information will afford you an understanding of your customer’s sentiments. You will also gain insight into your brand’s power. By using retail data analysis to discover and interpret both in-store and online shopper behaviour, you will be able to stay ahead of the curve – and more importantly ahead of your customers. The modern world in the 21st century is fast moving and the most successful retailers will acknowledge that trends will change quickly. Prevailing customer sentiments determine the latest trends, the trends that come round time and again and the trends that quickly fail. Data gives you the picture and alerts you to changing trends among your customers. Here are just a few ways that you can use data analytics to your advantage: 1. Personalise the shopping experience. You can use information collected about your customers to personalise both your marketing and each customer’s shopping experience. This in turn will lead to customer satisfaction, repeat purchases, customer referrals and customer loyalty. A customer who feels valued by a company is far more likely to both return and refer friends. 2. A strategic approach By collecting information from all the stands of your business, you can get a wide-ranging view of business results. There is a tendency for departments to work in silos, so this over-view approach will allow you to see results from across the board and hence make better strategic decisions. 3. Improved day-to-day operations Retail data analytics allows retail businesses to keep track of product sales and ensure that best-selling items do not go out of stock. Information from the shop floor also helps identify trends, opportunities and popular items. In turn this helps with replenishing, marketing and future campaigns. 4. Predicting demand Information help businesses gain a good understanding of the buying trends of customers. By using data analytics to understand the buying trends of customers, retail businesses will be able to identify the areas with high demand. This is turn will help them to predict demand and improve inventory management. There is no doubt that data is big business. To remain competitive businesses have to get to grips with the collection, interpretation and use of information. Used well, data analytics can ensure an uninterrupted and satisfactory experience for everyone, from customer to staff member. Effective use of information can help retailers achieve maximum efficiency across every department.