Analytics in Retail
Retail clients provide an insight in to the future of Global Retail Analytics.
From our recent discussions with several large international retail clients a commitment to creating innovation in technology is high on the list of CEO’s. Analytics enable retailers to keep apace with constantly changing customer demands and sector evolution is demanding an increasingly greater share of the overall marketing budget.
Proprietary retail analytics is having a revolutionary effect on the way that retailers satisfy the demands and needs of their customers, and its creating greater efficiencies within broad, complex supply chains. Retail clients are growing increasingly aware of the importance of aggregating consumer and supplier data, along with wider peripheral unstructured market data, that can be translated into actionable insight in a high volume, low margin business. Its the difference between maintaining and developing market share, and real attrition.
Retail analytics, taken with actionable insight, provides a highly adaptable, low cost solution that enables fact-based commercial decision taking based on hard data and relies less upon qualitative elements, this is particularly well highlighted by ‘AI-Driven analytics’, with the UK’s largest retailers, such as Asda, employing predictive analytics to forecast demand and set prices.
Midsize and smaller retailers have been relegated to the limits of traditional BI and reporting in an attempt to derive insights. With traditional predictive analytic solutions most grocery assortment forecasting is done at an aggregate level by product by week, or perhaps product by store by week. Each product or SKU is considered independent of all other products, ignoring complex interdependent factors such as product affinities, cross-price elasticity, customer proximity to stores, customer proximity to competitive stores, and store layout, resulting in forecasting errors.
Location-based analytics could also provide a boost to retail sales. By leveraging customer data and location-based analytics, retailers could increase their sales, drawing newfound vitality from the digital era that threatens them. Multiple tech start-ups are offering AI-powered solutions for retailers looking to get the most out of customer data. That data can be sourced through the retailers' own apps or purchased from third parties.
To ensure the build-out and continued development of analytics teams, retailers need to attract top performing talent, with stiff competition for analysts, data scientists and insights professionals across all industries, especially from the high-paying banking sector, retailers need to improve their 'strike rate' in terms of defining roles and writing compelling job specifications that differentiate and entice this elusive quantity of talent.
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