The key to a successful retail business is making the right, strategic decisions — and in order to do that in today’s highly unpredictable and volatile market environment, retailers need to utilize retail data analytics.
What Is Retail Data Analytics?
Retail data analytics is a process of collecting and analyzing retail data to discover specific patterns and trends. Those patterns will provide retailers with valuable insights that help retailers make better data-driven decisions to help them gain a competitive advantage, optimize their operations, and boost profitability.
All retailers are collecting some form of data, even if it is only on a simple spreadsheet. However, retail data analytics is an automated process that enables retailers to quickly sift through millions of data points at once — making data analysis more efficient.
To help retailers figure out which types of data analytics they should utilize, here are three main types of retail data analytics that every retailer should know about.
Types of Retail Data Analytics
1. Descriptive analytics
Traditionally, retailers have to collect data from multiple sources (POS, inventory, OMS, ERPs) and organize data manually in an Excel spreadsheet. But now, data analytics and business intelligence tools make data gathering and reporting much simpler by automating the process.
As the most common type of data analytics, descriptive analytics describes “what” is happening in a business but in order to figure out the “why” and the correlations behind certain events, retailers have to combine descriptive analytics with other types of analytics.
2. Diagnostic analytics
Retailers can identify and flag potential problems in their business more quickly with diagnostic analytics. This type of analytics explains the “why” behind specific problems or events by processing raw data and utilizing algorithms, statistical analytics, or machine learning to figure out the correlation between various data points. In the past, retailers had to find patterns and correlations manually, but in today’s increasingly complex and data-heavy world, technology is required to ensure that analytics are done properly.
3. Predictive analytics
After understanding “what” is happening and the “why” behind it, now is the time to figure out “what is next”. Using advanced mathematics, automation, AI, and the insights gained from both descriptive and diagnostic analytics, predictive analytics will help retailers create a data-driven forecast.
Just like other types of analytics, retailers have tried to create predictive models manually, but since retail businesses are very complex, predictive analytics is the best way for retailers to come up with a more accurate sales forecast.
Are You Looking To Adopt Retail Analytics for Your Business?
The most important thing to do if retailers want to adopt data analytics into their business is to choose the right data analytics tool.
If you are looking for a user-friendly and hassle-free data analytics solution, look no further than SYCARDA. As a plug-and-play software that sits on top of your point of sale (POS) system, SYCARDA will automatically collect sales receipt data and can be installed across multiple outlets without disrupting operations.
Retailers can then monitor real-time outlet performance, consumer behavior, and other reports in SYCARDA’s user web portal.
Book a consultation with SYCARDA today and adopt the best retail analytics solutions for your business.
FAQ
What is the significance of diagnostic analytics in retail data analysis?
Diagnostic analytics help retailers identify the underlying causes behind specific events or issues by uncovering correlations and patterns within raw data, facilitating quicker problem-solving.
How can predictive analytics benefit retailers in the complex retail landscape?
Predictive analytics enables retailers to create accurate sales forecasts by utilizing advanced mathematics, automation, AI, and insights from other analytics types. This assists in making informed decisions in the ever-changing retail environment.
How can SYCARDA assist retailers in adopting data analytics?
SYCARDA offers a plug-and-play solution that seamlessly integrates with the point of sale (POS) system, automating data collection and offering real-time insights. Book a consultation to explore the benefits of SYCARDA’s user-friendly retail analytics solutions for your business.
