Retail business intelligence in today’s times is more vital than ever. It is not just the purpose of beating competition for which consumer data is required, it is also essential to identify the patterns of consumers. This factor determines the services and products that are being sold.
Explanation of Business Intelligence for Retail Industry
The practice of using data to derive important information and insights on customers is known as business intelligence. The information is useful in making crucial business decisions.
A technology-based process is followed to obtain the business intelligence and further use of technology is necessary to store and manage the data. This becomes necessary as the data must be ready to use at any point in time for the proper running of a business.
Benefits of Retail Business Intelligence in E-Commerce
- Obtain visibility into business operations from the supply-chain aspect: Retail business intelligence equips businesses with insight into each part of a purchase a customer makes, from packaging and organizing to final delivery of all products.
- Focus on where the consumers belong: With the help of business intelligence it is easy to view the actual locations of consumers (cities, states, etc.) and at the same time it is possible to know how they reach their websites and products.
- Aim for marketing campaigns and measure their efficiency: Retailers can pay attention to whether marketing campaigns are working properly and whether customers are clicking on the links, opening up emails, etc.
- Track consumer spending behaviors and patterns: Consumer loyalty programs are very effective to track down spending behavior and patterns. Research indicates that more than half of loyal customers join the loyalty program when they are requested.
This is a significant method for retaining customers and generating user-generated product reviews and content. Below are the following examples to understand the matter clearly:
- The loyalty program of Marriott includes several benefits, like free mobile app checking-in, members-only rates, upgrading to VIP level, etc.
- DSW offers points-based rewards programs where consumers are awarded points for every purchase towards $10 off coupons.
- Understand the requirements of consumers: It is necessary that a business understands and develops proper relationships with consumers and interacts with them in a better way with predictive intelligence recommendations. Now many industries see that personalized engagement and consumer interactions are vital for customer growth and retention.
- Observe social media activity: Assessing social media sentiment is the benefit that businesses can get through business intelligence. This makes it easy to track down the metrics and view how their products have scored. Merchandisers could also utilize this information to understand the performance and the sales of specific brands, stores, and products. Social media could also be a pivotal resource for customer service.
- Deliver distinctive shopping experiences: Imparting a personalized experience for customers will enhance loyalty and, hopefully, the revenue as well. As per Forbes, 44% of customers say they would likely re-attempt a personalized shopping experience.
- Drive profitability through consumer retention: Why are loyal consumers crucial? According to HubSpot, a 5% increase in consumer retention could translate to a profit of a minimum of 25%.
Retail business intelligence could also be utilized to recommend promotions or products to consumers based on social sentiment and previous trends of purchasing.
Additionally, to assert business intelligence, supportive knowledge about the customers could also be derived from Databricks, Azure Analytics. The process of machine learning also helps immensely with the activities of data science in e-commerce.