How well do you know your customers? BI or business intelligence facilitates efficient data analysis to make better business decisions. It enables retailers to understand their customers and make more informed choices about products to stock and where to place them in the store. BI also supports marketing wizards to devise their winning campaigns.
Read on as we learn about the top ways BI is beneficial to retail businesses….
Improved Customer Segmentation & Profiling
Armed with data, businesses can segment their customers more accurately and identify specific demographics, interests, and trends. It allows companies to target their marketing campaigns more effectively and manage inventory accordingly. Moreover, enhance the user experience further with a more personalized approach.
A recent report by Forbes revealed that about 44% would become repeat customers if they had a personalized shopping experience.
Amazon — A Global eCommerce Giant — relies on Business Intelligence to personalize product recommendations for their customers.
In addition, retailers can use customer profiling to identify high-value customers. These customers are most likely to make repeat purchases or make referrals. By identifying and targeting these high-value customers, they can generate more significant revenue and expand their customer base.
Increased Customer Loyalty & Retention
Those in the retail business understand the importance of customer loyalty and retention. It ensures the long-term success of any business.
Here Are the Key Steps to Ensure Customer Loyalty and Retention:
- They need to focus on creating a great customer experience. It means understanding what customers want/need and delivering it in a way that makes them feel valued.
- Businesses should keep track of customer behavior and feedback to identify areas where improvements can be made.
- They need to make sure they always deliver on their promises, else customers will quickly lose faith.
By taking these steps, businesses can create a customer base that is loyal and willing to stick around for the long haul. And this can happen with the power of BI that presents insightful data, which eventually proves to be a game-changer.
Boost Sales & Revenues
With BI, retail businesses can track their sales performance in real-time and identify fluctuations. Equipped with this knowledge, they can take corrective action to boost their sales and revenues. BI also enables them to identify trends and opportunities. Retail can fine-tune their sales efforts to maximize results.
Starbucks — An American multinational chain of coffeehouses —using a dedicated BI software gives tailored offers to their customers based on their purchase behavior.
Efficient Stock Management
Retail businesses can employ BI to keep a tab on their stock levels and decide what products to stock and when to restock. For example, if BI shows that a specific T-shirt is not selling well, the retailer might stop storing it. It will guide a retailer to reduce wastage and save on inventory costs. With BI, businesses can make sure they always have the right products in stock and avoid running out of popular items.
Business Intelligence enables retailers to segregate the inventory based on the Selective Inventory Control (SIC) approach, commonly known as the ABC analysis. Through this analysis, retail businesses can quickly identify the merchandise category with a high impact on the overall inventory costs. Here, A is the most valuable, while C is the least important.
The Bottom Line
We all know that data is vital for any retail business to stay ahead of its competitors. Using a business intelligence tool helps them understand customer behavior, update inventory, and build a forecast. It also allows businesses to organize better and analyze and contextualize data. The reports, performance charts, and company trends help companies to make more informed decisions or take necessary actions to boost sales. BI tool allows retailers to understand their customers at a significantly deeper level.
We are sure you might have a brief idea of how powerful and necessary the BI tool is for any retail industry. Most retailers are flying blind when it comes to their data. They don’t have the time or resources to analyze their data, so they rely on gut instinct and experience to make decisions. We can help you unlock the potential in your retail data. Our BI software will help you see your business in a whole new light, so you can make informed decisions about what products to stock, where to open new stores, and how to price your items.