12th Nov, 2021
, , Designation
- With the digital expansion and omnichannel retailing, businesses are exposed to heaps of data, making retail analytics even more pressing
- The absence of future-forward BI analytics solutions impedes a company’s ability to create accurate sales forecasting and optimize operations accordingly
- modern retail must adopt a data-driven approach towards business and implement an integrated analytics engine to create dynamic narratives for competitive advantage
One of the recent trends that stands out in the retail industry is the prospect of retail analytics in maximizing store productivity and achieving sales growth. However, with huge amounts of data generated across stores, retailers face bottlenecks in extracting business intelligence from the data beyond the replenishment chain. Very often, retailers cannot obtain real-time market intelligence in terms of competitor data, product information, customer preferences and buying propensity, etc. They fail to discover patterns invisible to the simple statistical tools and lose out on key markers to transform their business.
The retail industry is in a phase where it must use a centralized BI analytics engine that collects data at a granular level. The analytics tool must be capable of collecting data at a granular level around key growth drivers. It must create data visualizations and develop correlation analysis between the company’s products and market offtake. An accurate and refined database is a prerequisite to building a solid marketing strategy and maximizing sales across different market verticals.
Also, read the blog “New-age Customer Acquisition with Retail Analytics” to get quick insights on how retail analytics will drive new-age customer acquisition by tracking customer trends, preferences, and purchase propensity.
Business challenges in the absence of a robust data analytics program
The absence of future-forward BI analytics solutions impedes a company’s ability to create accurate sales forecasting and optimize operations accordingly. Big multinational retail brands with manual processes struggle to track the market performance of their products and competitor performance across locations. Businesses are unable to capture scattered benchmarking metrics in the absence of an integrated reporting platform. The abovementioned challenges create issues for retailers beyond simple data collection and analysis:
- Time-consuming and siloed report creation by marketing teams
- Manual efforts leading to slow insights generation
- Absence of personalized reports for top management and stakeholders
- Unable to extract granular data about competitors, products, and markets
- Limited perspective on data visualizations
- Lack of visibility around core growth drivers
Implementing a unified retail analytics engine to drive sales
To counter the above challenges and issues, modern retail must adopt a data-driven approach towards business. Implementing an integrated and comprehensive analytics engine with AI, ML, and NLP technologies to create dynamic narratives gives a competitive business advantage.
A multinational therapeutic and clinical nutrition company triumphed through the challenges of data capture, reporting, and insights generation across stores in India. The company deployed a unified retail analytics engine with NLP technology to capture data from multiple sources, create correlation analysis, and develop simulation models.
Read the full success story here:
Using a 360-degree retail analytics tool, retailers can quickly gauge market competition for their products. Accordingly, they can customize their marketing and sales strategy to increase products’ visibility across different stores and locations. A centralized tool allows information sharing from one single source of truth. It allows stakeholders to track marketing and sales performance data, transaction data, competitor mapping, customer data, and IQVIA data. It enables local and global retail brands to scale in different markets using BI analytics derived from on-ground data. A user-friendly retail analytics software delivered the following result for the therapeutic and nutritional product company:
- Unified analytics platform to capture data across 15+ states and from multiple sources
- A user-friendly dashboard powered by robust ETL layers allowed data analysis at a granular level
- Predictive analytics model to identify key growth drivers for increasing market offtake
- Correlation analysis between company’s product offtake and market offtake
- Generated dynamic narratives for competitive market advantage
- Simulation models that established composite relationships between business variables consistent with significant entities in the business domain
These solutions had a far-reaching impact on the company’s business growth and increased category sales by 18% across India. Executing a 360-degree retail analytics engine provided the company instant access to over 1.5 lakhs of data points triggered daily. A user-friendly dashboard allowed easy access and analysis of market insights. The engine identified inefficient territories in distribution channels and enabled faster decision-making by slashing report creation time from 12 days to 45 minutes.
Read the full case study here to know how Denave experts helped a multinational therapeutic and nutrition product company achieve 18% increase in category sales with end-to-end retail analytics solutions.
With the digital expansion and omnichannel retailing, businesses are exposed to heaps of data, making retail analytics even more pressing. Unfortunately, big retail brands are still stuck with manual data collection, analysis, and report creation processes. Manual data analytics hinders growth prospects and increases daily overheads. Modern retail must be made smarter through big data tools that can effectively convert data trapped in the market to actionable business insights. From optimizing marketing spends to creating a fail-safe sales and go-to-market strategy, an integrated analytics engine is the elixir to drive businesses ahead in the future.
Additionally, download our retail whitepaper to get a thorough understanding of current market challenges, identify modern trends and future-forward solutions to drive business success amidst industry-wide disruptions.