How important is retail analytics? According to one recent study, 76% of merchants say analytics are essential to store performance.
Though only 16% say they do a good job utilizing them.
If you are part of the 84% that hasn’t gotten the hang of it, don’t give up! It may have a difficult learning curve, but retail analytics is not something your business can afford to ignore.
Here, we’ve listed 5 ways retail analytics software is crucial for increasing your store’s profits. Read on to learn what retail data systems can do for your store.
Find Your Best and Worst Selling Items
All store locations are different. An item that sells great at one store may not sell at all at yours, and vice versa.
Using purchase data collected at the point of sale, you are taking the guesswork out of identifying your best-and-worst-selling items. Your retail analytics software keeps perfect track of all aspects of selling so you don’t have to. Just look at your sales reports to get a detailed sales record of each item in your store
Then use this data to determine appropriate pricing, ordering, and promoting each item to maximize profits. You will also be able to see when items go missing due to shoplifting.
Use Customer Buying Habits for Targeted Marketing
Each customer is different. Some are regulars, some only shop occasionally and some have never been in your store. Treating them like they’re all the same is bad for business.
Retail data analytics lets you keep track of customer spending behavior so you can market the right way to the right customers. By target customers based on their spending habits, you can provide them with more relevant promotions and sales suggestions to increase profits.
Track Your Own Selling Behavior
You can also use retail data analytics to keep track of your sales teams selling performance. You can see which marketing strategies work and which don’t. You can use this to test new marketing strategies or current ones.
You can also see which of your employees are performing the best in sales and which are the worst. This may be the biggest way that retail data systems help your profits.
Cut Back Unnecessary Spending
Likewise, you can use retail data systems to see where you may be spending too much money.
Buying things your store doesn’t need, maintaining outdated equipment and inefficient scheduling are common financial leaks businesses struggle with. And miscellaneous, small expenses here and there are hard to track by yourself but add up quickly. Use retail analytics to see exactly where your store is losing money and fix it.
Keep Track of Multiple Locations
If your business has more than one location, retail data systems let you see all data across all your stores. This helps you streamline your business and easily compare the performance of all your locations.
You can see where each store is performing well and where each needs improvement. Use this data to inspire improvement with healthy competition between stores. Using retail data analytics will improve your company’s retail execution across all locations.
Harness The Power of Retail Analytics
Using retail analytics software gives you control over your business and makes your business more efficient. Not using retail analytics is like trying to run your business blindfolded. Stop making things hard on yourself and start using retail analytics in your store.
For more about how technology can help your business, check out 5 Tech Systems That Can Streamline Operations at Your Store or Restaurant and Radical Ways Salesforce Analytics is Changing the Face of Big Data.