Data Analytics Can Help Retailers Survive in This Increasingly Competitive Environment

Discussing how consumer data analytics can not only help small to mid-size retailers survive in this increasingly competitive environment but also make the most out of it


On the one hand, the pandemic along with technology has taught customers new purchasing behaviors, while on the other, the rise of e-commerce has provided businesses with new avenues to reach those customers. To put that into perspective, retail sales in the United States hit $1.47 trillion in the fourth quarter of 2020, $1.58 trillion in the first quarter of 2021, and are expected to exceed $4.44 trillion in 2021. Therefore, it is fair to say that organizations now have more channels in terms of online retailing or e-commerce than ever before to connect and sell to customers because of the pandemic. 


However, average-sized merchants find it increasingly difficult to compete against the omnipresence and scale of global online marketplaces as margins shrink, the number of digital buyers increases, and the costs of matching customer demands climb. To address these issues, retailers are increasingly relying on data and analytics to make better business choices and direct customer marketing efforts. While some shops are still working out how to effectively collect consumer data, others who already have it are unsure what to do with it.


Regardless, sales analytics dashboards that engage business users across the company locate relevant solutions to understand various channels are becoming increasingly important. These readily accessible sales-based information management and analytics dashboards provide more than just general business intelligence to a retailer. They help employees evaluate sales performance across numerous channels, uncover hidden trends, discover causal and non-causal correlations, and identify other crucial indicators that contribute to beneficial company outcomes.


Enhancing the Average Transaction Value 

By using tactics such as increasing cart values by recommending additional goods they know sell well together, merchants increased e-retail sales surpassing $4.2 trillion worldwide. These are the kinds of judgments that business analytics engines can make by identifying trends and upselling possibilities and employing demographic and geographical data at the right moment to provide users with the right mix of products and value.


Analyses of Foot Traffic

Since physical or in-store shopping still remains one of the most popular channels in this industry, consider using foot traffic analytics tools in your retail business if you haven't already. Individual counters and beacons can provide information such as client counts and dwell periods, among other things. With such information, you may learn more about how much traffic your business receives, which areas of your store receive the most and least visitors, and so on.


Tailored Service

Wise merchants are designing their stores as showrooms and using data analytics to personalize the in-store experience as much as possible. This includes combining data such as long-term climate forecasts, typical property costs, and household wages. This allows businesses to choose items that are best suited to local markets or, in the case of a single shop, choose clothing to offer based on the weather forecast for a given Bank Holiday.


Streamlining Requirements

The rise of online shopping has necessitated unstructured analytics of constantly shifting shipping and tax charges. To make the shopping experience consistent, external data sources on duty rates and shipping costs can be combined with client address data. To do so, merchants must absorb information changes seamlessly and precisely to effectively analyze expenses and avoid tax underpayments or overpayments without interfering with the consumer experience at the retail site.


Sharing Information Actively

While collecting data on sales and buyer behavior is necessary, you don't want to be the merchant who collects data behind closed doors. Make your consumers a part of the data gathering process to get the most out of it by encouraging them to share their knowledge with you via conversations, reviews, and other research methods. Not only will this help you improve, but it will also help you in data privacy compliance and create trust.

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