Data and advanced analytics provide distinct advantages for companies. While data plays a critical role in the success of modern companies, some vastly outpace others when it comes to analytics. You may ask yourself, “do I work for my data or does my data work for me?”.
Tools have evolved in the field of data analytics making it much more accessible and affordable than ever before. The best analytics tools help you maintain visibility, make decisions and manage exceptions efficiently. Your data should tell you what happened (descriptive analytics), why it happened (diagnostic analytics), what will happen (predictive analytics) and provide intelligence on what to do next (prescriptive analytics). At Redapt, we call this actionable data.
Why Advanced Analytics in Retail?
Retailers possess the unique advantage of direct customer relationships because of the insights they provide through mass amounts of data. Coupled with the right tools, retailers can leverage this to their advantage and stay ahead of their competition. Most of the data generated about customers derives from point of sale, customer loyalty programs and ecommerce.
Advanced analytics drive tangible results for retailers in three major areas; merchandising, operations and marketing.
With the data generated through various retail channels, the right predictive analytics programs can help your organization make informative decisions on promotions, pricing, inventory and procurement. Ultimately, you want to sell the right products to the right customers at the right price. Advanced analytics is the key to accomplish just that. Beyond delivering the right products to fit demand, advanced analytics can also drive marketing campaigns and where to allocate marketing resources.
Partner with Data Oriented Vendors
Aside from deploying advanced analytics systems and practices internally, make sure to partner with data-oriented vendors. While suppliers and vendors with better analytics tools may cost a little more than their less techy competition, the results will almost always overshadow any savings otherwise. Business intelligence that drives continuous improvement and operational efficiency is a value-add that should always be prioritized by retailers.
Retailers looking to take advantage of advance analytics should look for a partner to help them modernize their applications. Chances are, your retail organization already has the data to get started. Migrating to the cloud and modernizing existing apps can prove both cost effective and efficient.