Most retail businesses have been collecting data in some type or form on a daily basis. The only difference is, this trove of data will not amount to anything of value if businesses are unable to translate it into actionable insights.
When businesses are supported with the right data, tools, and knowledge on what to do, they can make accurate forecasts on market trends or consumer behavior using predictive analytics. Predictive analytics uses historical data to predict future sales.
Meaning, retailers can focus their efforts and resources on products or marketing campaigns that will yield the biggest return on their investment (ROI).
Below are use cases on how retail companies make use of predictive analytics to boost their ROI.
1. Customer behavior and journey
Today, there are more interaction points between the customer and retail companies: social media, e-commerce, physical stores, websites, and more. This increases the complexity of data collection and analysis — yet it is crucial that retailers do it properly.
Because by gaining data-driven insights into customer behavior, they can identify high-value customers, their motives, buying patterns, and how to best reach them. With these insights, retailers can tailor marketing efforts to increase the probability of increasing customer loyalty towards their brand.
Customers’ expectations towards businesses have also skyrocketed; they demand retailers to keep them updated, provide a seamless and intuitive experience across channels, and connect with them. This requires retailers to have in-depth knowledge of each customer and their purchasing history in all channels in order to predict their future demands.
2. Personalized marketing and shopping experience
Today’s technology (POS systems, websites, apps, CCTV, etc.) allows retailers to track people’s behavior while shopping, whether it is online or offline. Supported by the insights gained on the customer’s preferences, retailers can come up with personalized marketing or merchandising strategies to incentivize customers into making more (impulsive) purchases across all sales channels. This will help retailers boost their ROI and profitability, and allow them to provide a better customer experience.
3. Supply chains and operations
Retailers can maximize their ROI by using predictive analytics to make their processes more efficient. Every business has its limitations, be it manpower, resources, or time — that is why optimizing resources is crucial if retailers want to boost their ROI. Using predictive analytics, retailers can reduce the chance of getting stuck with dead stock or slow-moving products that will eat into their profits, because they will be armed with the knowledge of future market trends. They can provide a better customer experience, as they are always quick to adapt to market trends and stock up on products that customers want.
Boosting Your ROI With The Right Data Analytics Tool
Retailers who are looking to gain a competitive advantage over their competitors in an ever-changing marketplace should look into predictive analytics and choose the right data analytics tool — like SYCARDA.
SYCARDA is a light data analytics software that allows you to automatically collect sales receipt data and turn it into various reports. It can be easily installed across multiple outlets without having to disrupt operations. Retailers can then gain access to real-time analytics on store performance, consumer behavior, and many more by accessing SYCARDA’s user-friendly web portal.
Book a consultation with SYCARDA today and let us help you with the best data analytics solutions to help you boost your ROI.
FAQ
How does predictive analytics benefit retailers in boosting ROI?
Predictive analytics leverages historical data to forecast future trends, enabling retailers to focus resources on high-impact areas for maximum ROI growth.
How can personalized marketing enhance retail ROI?
Personalized strategies, driven by predictive insights, encourage impulse purchases, customer satisfaction, and ultimately, higher ROI.
How can retailers integrate SYCARDA’s data analytics for ROI growth?
SYCARDA offers a user-friendly data analytics tool, that automatically collects sales receipt data. Retailers can access real-time insights via SYCARDA’s web portal. Book a consultation to explore these data-driven ROI solutions.
