What is retail analytics?
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Retail analytics is....
... the practice of leveraging data to
- measure performance,
- augment decisions and
- monitor results.
In retail, common applications include; measuring the performance of marketing campaigns, monitoring the supply chain, inventory management and merchandising.
A common end result of analytics is the tracking and monitoring of Metrics and Key Performance Indicators (KPIs) which are then employed as proxies to measure the health of the business.
Where does the data come from?
Given the proliferation of technologies today, data can come from many sources. Some include:
- Daily transactions
- Day-to-day Operations
- Shopper Loyalty Initiatives
- Product Information
- Marketing Attribution Tools
- External data sets (e.g. Weather)
New technologies have allowed us to augment our analytical prowess through the combination of data sets (e.g. promotions effectiveness derived from Marketing Attribution and Sales Data) to paint a more complete picture before making a decision.
With the proliferation of sensory (e.g. IoT devices) and the reduction in cost for storage and compute in cloud technologies, it is now easier than ever to collect, store and analyse data.
The goal post, however, hasn't changed.
What should be my next action to help me improve my business by either helping me increase sales or decrease costs?