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4 Tips To Strengthen Store Performance Using Analytics

Using computer tablet for data analysis

With “Big Data” becoming more prevalent, retailers are looking for ways to dig deeper and uncover more details about store performance in hopes of improving their return-on-investment

An article on the Retail Info Systems (RIS) News website highlights several steps that retailers can take to increase profitability and better understand shopping patterns. Of course, it’s the data that retailers are accumulating that matters most. Without the data, they wouldn’t be able to use any of the analytical techniques highlighted in the article. 

Obviously, capturing customer information is easier said than done. Most customers are reluctant to give out personal information — such as their address or phone number — to the cashier when checking out. 

That’s why many retailers use loyalty programs. Customers sign up to receive discounts, and every time they swipe their loyalty card that transaction information is attached the customer. Again, that’s vital to providing the customer data needed for analytics. It’s all about the data collection before a retailer can benefit from analytics. 

The RIS News article shares four other tips designed to help retailers strengthen store performance. 

  1. Analyze micro-level information: A retail ERP system can analyze data at the micro level. Understanding the performance of a specific department, floor or even shelf of the store can help stores see the big picture.
  2. Offer a multichannel experience: Using other channels to enhance customer experience is becoming more important with advancing technology. This helps to make retailers more aware of what their goals are and provides increased incentive to align their behavior with those goals.
  3. Examine the impact that weather has on sales: The RIS News article notes that weather patterns may impact store sales. Retailers could effectively promote sales or events after they compare historical and traffic data to weather patterns. If you have that historical and traffic data information in your ERP system, it’s not out of the realm of possibility that a retailer could cross-reference data at a particular store with what the weather was at that time.
  4. Apply analytics to track consumer trends and behavior: Traffic counting, in particular, is especially popular among higher-end specialty retailers. It’s not uncommon for them to have cameras on the sidewalk to monitor foot traffic.

Source: RIS News, April 2013