Competition in retail, already intense, is becoming increasingly fierce. Product lines and prices constantly have to be more flexible due to demographic and structural changes. Modern forms of distribution are becoming increasingly important. The customer is the most important, and he wants to be served according to his individual needs. Knowing what consumers want tomorrow is a recipe for future success.The successful companies are those that use their data from loyalty cards, RFID chips, mobile devices or social media as efficiently as possible. The starting point is always a high-performance analysis platform, which can be quickly and easily linked to even the largest databases from internal and external sources. The effect is impressive: the McKinsey Global Institute therefore estimates that retailers can increase their operating margin by more than 60 percent through the consistent use of Big Data.
Until recently, the much-cited 360-degree view of the customer was nothing more than wishful thinking. Modern methods of data management and data analysis have now placed this ideal within reach. It starts before the first transaction: just by monitoring online behavior on the website, it is possible to perform a precise segmentation that can be used to forecast future buyer behavior. In the future, the data from loyalty cards, shopping carts, receipts, etc., will be combined into a complete customer history that includes all purchasing processes. Similarly, you can integrate data from social networks and mobile computing in real time.
The result is not only a much more accurate Customer Lifetime Value (CLV), which allows you to accumulate and fine-tune other analytical processes. At the same time, it offers a sound basis so that you can configure prices, product lines, promotions or even personalized offers in a way that is as precise as it is flexible. You will also gain valuable indicators for innovative services such as intelligent shopping baskets.
You can increase the success of your campaigns significantly through fine customer segmentation. Real-time analysis can be used to define campaign content as well as coordinated measures and preferred communication channels that are targeted. Prices and special offers can therefore be customized quickly and flexibly. Meanwhile, a linking of social media and mobile date increases the profitability of cross-selling and upselling products. Sentiment analysis in social media tracks mood trends and enables an immediate reaction. In principle, the action plan can be automated taking into account all internal and external sources.
In addition, reliable performance review tools are provided: expected revenues and earnings are already reported in advance. Meanwhile, a detailed performance analysis in real time provides information about the campaign's actual value. The results are incorporated into clear ad hoc reporting, which you can use as a basis for making informed decisions quickly and optimizing future actions.
Selling through a variety of distribution channels is now considered the standard for retail companies. Again and again, however, there is no systematic coordination of the individual channels. With the help of a modern data platform all sales-relevant organizational units can have equal access to the relevant information. As a result, sales and marketing have a stable base from which to implement integrated communication strategies as well as cross- and omni-channel campaigns successfully. However, a uniform marketing presence is always provided at the point of sale, where a balance of the respective customer preferences allows for proactive offers that are individually customized. You therefore provide a consistent shopping experience with a correspondingly high customer loyalty and satisfaction.
At the same time, multiple opportunities open up for the development of innovative forms of distribution. Examples are the online sale of food and consumer goods including home delivery or a predictive or automated compilation of individual shopping baskets. In this way, you can stand out clearly from the competition and exploit completely new groups of buyers.
It is exactly in the field of mobile data that many retail companies still have masses of unused potential. This is because you not only obtain more material for a more precise customer segmentation, but you can use mobile devices as comprehensive interaction platforms in which the customer is identified and personally addressed in the store on the basis of appropriate apps.
In this context it is possible to map the complete sales process, starting with customized promotions and individual offers and discounts to a comfortable payment process. You can also support the customer in the product search and take advantage of targeted cross-selling. Last but not least, movement profiles and analysis of in-store behavior contribute to more efficient product placements and shelf layouts.
In the field of social media modern data collection and analysis play to their strengths fully. Using powerful social listening tools, moods are captured in real time, evaluated and displayed in clear diagrams. This provides you with direct access to valuable suggestions for the optimization of product lines and services. Where necessary, an alarm function is indicated on relevant statements so that you can respond immediately and counteract any negative developments at once. Influential opinion leaders can also be identified and attracted in a targeted manner.
At the same time, you have a well-established database, with which you can systematically arrange your social media channels and proactively place your own messages. The combination of various factors ultimately provides a clear differentiation between individual stages of the user commitment. A reliable measurement of performance which distinguishes between visibility, commitment and recommendations is therefore made possible.
Staff constitutes one of the greatest expenses in the retail trade. The potential for optimization is also correspondingly extensive. For example, branches with around 50 employees can save approximately 200,000 euros per year, which is an improvement of approximately 10 percent.
This requires, above all, an accurate staffing plan that you can implement by linking personnel and sales data with requisitions and sales forecasts for each branch by up to one year in advance. In this way, local and seasonal parameters can also be included. Detailed reports on the costs per turnover, sale, receipt and employee create further transparency and allow you to make a direct comparison between branches or departments. A corresponding benchmarking also motivates the store manager to optimize staffing levels and space distribution.
Those who wish to remain competitive in today's environment must adapt their product ranges and prices to the needs of customers and to current demand. This can be very precisely guaranteed through real-time analysis of customer data, such as a link of purchasing behavior with demographic sources that is updated on a daily basis. Climate and weather forecasts, the general trend of prices, political events or current major events can likewise be included.
In this way, you can immediately identify and use trends. Numerous price scenarios are also played out in a very short time. The specific success of your actions can ultimately be traced right back to the item level. In addition, with the help of in-store behavior analysis, you can detect possible weaknesses in the presentation of products and optimize their placement as well as the shelf layouts.
A significant proportion of the trading margin depends on an optimal supply chain. It is important to avoid bottlenecks and out-of-stock scenarios and inventory costs and commitment of capital are to be reduced. To this end, modern analytical platforms facilitate a direct reconciliation of current purchasing data with empirical values from the past and external factors. The result is accurate demand and sales forecasts, based on which required plan quantities and the ideal timing for ordering are determined.
At the same time, you can forge close links with suppliers and logistics providers. The integration of shipping data from partner enterprises creates full transparency and speed in the delivery process. Products can be moved quickly and easily between branches. Linking RFID data in the products ensures further improvements in controlling the flow of goods.
Detecting fraud and embezzlement used to be extremely tedious, time-consuming and ineffective. These processes are now increasingly automated. Analysis up to receipt and item level can be performed in real time. Other historical records such as cancellations, terminations, returns, round bookings and staff sales are available for the last five years. In this way, the desired parameters and tolerances can be freely defined.
Finally, the system provides you with reports and comparisons per branch and per item. As a result, you identify any irregularity quickly and reliably - and with far fewer staff.