Retail Analytics – Types, Examples, and Benefits

Data has become known as the “lifeblood” of modern companies given its importance in increasing the effectiveness of various processes and their impact on growing business and revenue as a whole. In addition to having tools that capture customer data, you also need to have tools that allow you to analyze it as well. This way, you will get the most value for your investment and be able to make more accurate business decisions. In this article, we will discuss the various types of retail data analytics and how they can be used to serve your customers better and boost revenue as well. 

Tracking Demographics

Your eCommerce platform is open 24/7 every day of the week, and anybody from any location all over the world can access your website and purchase a product. In addition to knowing in what aria your customers live, you also need to be aware of their age, gender, and shopping behavior. By obtaining this information, you will be able to target particular groups of consumers. For example, if you are looking to attract teenagers and young adults to your store, but you notice that you are mostly getting people aged 40 and over, then you know that your message is not getting through. E-commerce platforms, like Magento, will help you track such data and gain a better understanding of your customers. 

If you have a few physical locations, you can use the location of your customers to your advantage. This is something currently being done by Auchan, a worldwide retailer, who is using geo-tracking to notify customers that they are close to one of their stores. The app also sends push notifications to shoppers in the store, telling them about certain items that are on sale and promotions that are currently going on. This is a great way to build a loyal following of customers and increase revenue. 

Tracking Customer Behavior Online and In-Store 

It is important to track customer behavior to get to know them better and build loyal, long-lasting relationships. And it can be done using predictive analytics in retail. What this means is that all of the actions that an individual user performs will be analyzed. The platform will provide them with more personalized product offerings based on their previous behavior. Such data will include previous products viewed, the pages they visited, and how much time they spent viewing it as well as lots of other information. Providing a customized user experience is more critical today than ever before since there is no shortage of eCommerce platforms, and the user will not hesitate to shift over to the competition if they feel that they understand their needs better. 

As far as physical locations are concerned, it would help if you also tracked customer behavior here. Stores usually do this by installing beacons that track the way shoppers move around the store. Such information will be precious for your retail data analyst since it provides insights into the popularity of certain products and how easy it is to navigate around your store and make adjustments accordingly. If you need more in-depth analysis and insight into user actions, it is possible to develop a custom retail solution that will provide you with the exact data you need. 

Sources of Incoming Traffic

A lot of times, businesses try various marketing channels and methods of reaching customers and attracting them to their websites. To know what’s working, you need to be able to track where your users are coming from. This includes social media, blogging platforms, advertisements, and anything else you are using to bring in more customers. This is important because you could be spending a lot of money on Facebook ads, for example, only to find out that your customers are finding you through search engines. This will allow you to optimize your spending and make better use of every dollar you spend. 

Start Using Retail Industry Analysis To Benefit Your Business Today

We have explored the role of big data and predictive analytics in retailing, and it is vital to get as much information about your customers as you can, as this will allow you to optimize specific processes and gain an advantage over the competition. It is also essential to have the necessary tools that will help you analyze all of the data that you collect since this cannot be done manually. Even though you will need to invest in the procurement, development, and maintenance of such technology, this will pay off in the long run. In most situations, the off-the-shelf product will not fit your individual needs, and you will need to have it customized to get the most value out of it.