The retail industry has always been a part of our lives. But industry players have been constantly adapting to its constant changes, with the digital landscape reshaping how customers make purchasing choices and provide exposure on certain products. National Sales Head of Apple iPhone Business, Ajay Gupta reports that Facebook likes, blogs, tweets, and Instagram posts are influencing customer opinions “like never before.” Customers now have a louder voice on social media and it’s time for retail sellers to listen to them.

Thus it is crucial for every business to invest in retail analytics. According to Gupta, retail analytics are crucial for several aspects in the business: customer experience, pricing management, inventory management, fraud management, recommendations and promotions, employee empowerment, brand development, and business intelligence.

The Outsourcing Center emphasizes the significance of retail analytics. First, there is the pressure for faster return of investment in any business, whether short- or long-term. Competition is also more intense, given digital access and social media amplification. It is also crucial for businesses to target the millennial consumer group, as they are key to increasing sales and retaining customer loyalty.

The Scope of Retail Analytics

With each of these goals in mind, retail analytics would be able to cover everything from marketing, merchandising, supply chain, to store operations. These are four separate parts of a business that require specific sets of data.

Marketing analytics looks into changing customer demands while also studying how to assure loyalty and targeted customer interactions. The comprehensive scope includes customer data such as customer relationship management, point of sales systems, to relevant social media data that can enhance customer insight.

Merchandising analytics is all about releasing the right product at the right time. Planners use the data gathered to make decisions that align accordingly with customer expectations, with analytics considering product adjacency, space allocation, and assortment planning, as discussed in the Retailers Associaion of India’s study on Driving Retail Growth by Leveraging Analytics.

The same study reports that supply chain analytics is the key to retail profitability. Logistics inefficiency has a direct impact on fulfilling the customer demand and will deter customers from purchasing any more in the future. Lastly, store operation analytics looks into factors such as store staff, management inventory, and improvement of staff performance. Customer service is still a crucial part of any retail experience and taking care of your employees is the backbone to any business.

The Relevance of Retail Analytics Outsourcing

Zebra Technologies’ 2017 Retail Vision Study states that 73 percent of retailers rate managing big data as critical to the business, while 58 percent of them budget for storing and analyzing the said data. But data gathering and analysis is a significant investment on a business’ part and may take away necessary resources for product development, current marketing efforts, and overhead operations. Thankfully, retail analytics outsourcing can readily help any business improve its current products without compromising the company’s daily run.

Setting out a particular budget for retail analytics outsourcing can help a business save on time and costs. The time and expenses required for an in-house analytics solution is more expensive than consulting a third party expert. You also lessen the likelihood of mistakes by outsourcing an expert versus relying on your own knowledge or limitations.

You also lessen costs for maintaining a separate analytics department, going through an in-house hiring process, and upgrading current systems to accommodate retail analytics. Outsourcing lets you work with an expert that has all these resources but at a packaged and competitive cost.

Apart from budget savings, your business is free to focus on product and service development. Retail analytics will support your business in the future, but that shouldn’t stop you from expanding what your brand has to offer. There’s no need to balance data analysis along with business development.

At the same time, outsourcing assures that you gain the proper data and the respective analysis. Analytics are no longer based on historical data, according to CTO of L&T Infotech, Abhay Chitnis. Data should point to trends that directly tell a business “this can happen if you don’t do that,” such as calculated actions that occur without any disruptions or delays. Retail analytics provides proper answers to the right questions, whether they’re targeting a specific portion of the millennial market or want to improve HR practices. Questions such as “how do we hire the right people and where can we find them?” can be answered, according to senior vice president of product management for ADP, Inc. Don Weinstein.

The right retail analytics outsourcing partner can be found in Infinit Datum. With a vision of helping both small- and medium-sized companies, Infinit Datum has the resources to help drive business growth and provide the proper retail analytics.


Author: Outsourcing Insider

Outsourcing Insider consists of a team of regular blog contributors who writes topic about outsourcing and its relation to other industries like social media, finance, healthcare, sales and marketing, contact centers, and data and research.