The Importance of Retail Data Analytics

A correct set of retail data is sufficient to figure out if a customer is going to purchase from a store or will visit once again. Whenever folks go out shopping, they want to have an experience which is convenient, informative, and personalized. A retailer cannot provide a personalized experience if he does not have access to retail data analytics technology for obtaining information about particular shoppers and end users.

As compared to traditional retailers, e-commerce retailers find it easier to track and obtain information related to individual shoppers. This is because web technology makes it very easy for these e-tailers to gather data regarding customer purchases.

Web technology is also able to track the device through which customers access the website. What a customer went searching for from the showcased items to the time he spent on the site, every minute detail can be tracked. All this helps to understand customer persona and preferences at a deeper level.

With all this data, e-commerce websites are then able to deliver targeted emails, advertisements and personalized deals for customers, thus luring the customer to check out and make a purchase.

Access to such retail analytics helps in two things-

1) increases customer stickiness on the website with a personalized shopping experience and

2) increased sales from related items based on previous customer purchasing data

Video streaming services like Netflix are great examples where algorithms related to recommended videos drive more user engagement. All these benefits of data analytics are complicated to be derived from a physical store.

In short, the absence of data analytics technology can impact the physical store retailers negatively as they may not be able to provide a great experience to customers.

The use of Beacon Technology in Retail Analytics 

Store beacons are a piece of retail analytics technology which is becoming more and more popular in retail stores all over, mainly because of the multiple uses these beacons provide to the retailers. For instance, the tags can figure out those parts of your store that are busiest with the maximum number of customers.

This is a small detail, but it can help the retailers to a great extent. Such information can help store owners adjust and modify their display with products which they want the customers to be aware of. Promotional goods, for example, can be placed in areas where the traffic of customers is high usually.

The data collected through these beacons can also be used to monitor the traffic at particular hours of the day. A retailer with such a piece of information can plan out the allocation of his workforce and also the best position inside the store to place his items. 

These beacons can also be well-integrated into the mobile phones of shoppers. Once connected, customers can be sent welcome messages. Not only that, even reminders to purchase some particular items or any promotional offers available can be sent to these customers through the in-store beacons.

We are still not done. The beacons also provide help to trace the physical path through which a customer roams in the store while making his purchases. This is again a useful function as it helps to obtain and analyze specific shopping behaviors of particular customers while visiting a retail store. Walmart and Amazon Go stores have already been utilizing this piece of technology to yield significant benefits.

Amazon Go, in particular, has tweaked the use of beacon technology. Because these stores operate in a cashless manner, every customer gets a barcode scanned while entering the store. This barcode is on the Amazon Go app in the visiting shopper’s mobile phone. The customers then shop for their items and leave the store. A countless number of cameras inside the store track customers and their behavior.

It analyses all information such as what items they picked up, what they finally bought, and the items which they left behind, all of this os crucial information which gets recorded with the help of these cameras. Sophisticated computer systems take the data from the weight sensors to evaluate which products have been removed from a rack.

The moment a particular customer leaves the store, they are automatically charged for all the products which they have purchased. This is the closest a retail store can come to an e-commerce website, all of which is possible with the right technology.

Omnichannel Experience with Retail Data Analytics

If new retail analytics and reporting technology are merged cohesively, a considerable amount of data can easily be collected. This data will be capable enough to monitor every little piece of detail related to the behavior and buying preferences of customers. All of this data can be obtained from just one visit from a consumer.

Thus, with retail data analytics, stores can create an omnichannel shopping experience for customers. With smart stores, customers can have easy and cashless checkouts. Amazon Go is a great example. It gives customers the same online experience with its high-tech offline store.

Challenges with the adoption of Retail  Data Analytics

A lot of innovative products are there to help retailers who wish to have a better understanding of the customers visiting their stores. The issue is that only huge companies have financial resources where they can test and put the new technology-driven solutions to use.

The progress of these latest tools for retail analytics and reporting technology is pretty slow. What cannot be denied though, is the fact that technology is essential for any retailer today. If a customer does not receive an experience which is according to his expectations, no retailer will find the customer coming back to his doorstep.

Retailers should consider technology as an investment through which they can offer customized options according to customers’ preferences. Brick and mortar stores need to have the best retail technology possible without which retailers will not be able to provide the desired customer experience. 

If you are looking for data analytics solutions for your business, then GoodWorkLabs can help! Send us a short message with your requirements and our data analytics team can help you with a free consultation on the best data analytics solution for your business.

Customer loyalty is a key to the success of every business. Several big brands consider loyalty as a critical part of their online engagement strategies and employ various tools, from social check-ins to digital payment systems, to gain better involvement from customers. Retention and customer loyalty programs are becoming important revenue drivers in these highly crowded marketplaces.

Brands who are take the lead to prioritize their customers are proving to be early winners. About 43% of mobile app users are more likely to make a purchase when loyalty deals are a part of the app marketing campaign. That’s the level of influence mobile apps have on the lives of people and that’s the channel a business must target. Today we look some apps that (both from retailers themselves or through generic loyalty scheme service provider) that show how business can engage better with customers for a win-win deal –

Shopkick

A location based app, Shopkick offers exciting offers and discounts to customers who simply choose to walk into stores guided by the app. Some of the most prominent clients of Shopkick include Macy’s, Best Buy and Target. Currently Shopkick has been adding independent small retailers in select markets like Detroit, Chicago, San Francisco, New York, New Orleans, Washington DC, Dallas Seattle and Austin. Customers using Shopkick also get discounts by scanning products through the app. Shopkick is powered by shopBeacon, which helps users flag businesses of their choice around them.

Belly

Belly has proved to be a profitable choice for several businesses. The app allows businesses to track customer footfall wherein the plastic loyalty cards can be scanned on mobile devices and the data can be stored on the cloud. Belly also helps integrate this data over social media platforms and emails, helping spread the word among potential customers. Belly also enables businesses to customize their loyalty programs according to customer behavior and target the same through email messages. When customers scan their loyalty cards/QR codes on their devices, the data gets updated to the merchant database and increases potential leads.

Pirq

Pirq was extensively used in regular business deals after being launched nationwide in the US in 2014. Unlike Belly, Pirq does not require using an in-store tablet. One of the most interesting features of Pirq is Facebook integration across different demographics and several varieties of deals. Pirq has been providing customers with some amazingly unique offers helping businesses do more with their customer loyalty programs.

Foursquare

Foursquare has been an extremely popular customer loyalty service for a decade now. Focusing mainly on social media, Foursquare adds your business listing to enable free analytics and tools. Businesses use these analytics to target demographics more specifically and work towards their business goals. Customers on the other hand use Foursquare for business searches and associated deals and offers. You can also set up special deals for highest purchases and frequent customers.

LoyalBlocks

LoyalBlocks is another exciting app that automatically offers rewards to customers who simply choose to walk into store guided by the app. Business can register online and use an Android powered device as their base server to analyze and customize the rewards for their customers. Once the app has been installed, the interface automatically recognizes the customers and sends tailored rewards every time they walk into the store (powered by a location based tracking).

Mobile loyalty programs are a great benefit to startups and stores that are losing their customers to online retailers. Having such programs is easy and guarantees elaborate returns in the form of leads and profits.

The adoption of mobile devices is the single most rapidly growing and evolving adoption of any technology in the world currently. With huge number of people jumping on the smartphone technology bandwagon, marketers can find it a massive struggle to keep up. The huge potential is ideal to tap into, and businesses are flourishing after adopting the mobile platform. The mobile app industry was in its infancy as recently as five years ago. However, currently it comprises one of the largest markets in the world of technology, with billions of people spending almost 86% of their time using mobile devices on mobile app use.

The holiday season of 2014 can be viewed as a new landmark for retail companies, as they have really upped the ante when it comes to using the mobile app platform for their business. The highly competitive nature of the holiday shopping season saw plenty of effort on the part of retail companies to leverage the mobile platform and use it to their advantage. This has resulted in a massive evolution in the retailer mobile app segment.

Studying the Numbers

An independent study, collecting data from 150 retail mobile apps during the pre-holiday season in 2014, picked up some really interesting data. These trends and strategies have helped change the domain of retailer mobile apps and can be expected to be repeated over and over throughout 2015. Retailers increased their use of mobile communication during this period of time, and customers generally responded with extremely encouraging responses.

Here are some of the more compelling statistics –

• Compared to the previous year, 34% more push messages and notifications were sent by retailers through their mobile apps in 2014.
• Engagement rate for users increased to twice the amount for the previous year as a result of these push notifications.
• Among the total instances of app opens, almost a third was a direct result of the push notifications.

The Importance of Push Messages

Push notifications proved to be the difference-maker in the holiday season of 2014. Consumers appeared to be more engaged as a direct result, and retention rates were found to be considerably higher. Compared to email marketing, push notification scored heavily on all aspects, being seen to increase open rates by 50%, increasing CTR (Click Through Rate) by ten times and even resulting in a whopping 1200% greater conversion.

Retail companies targeted heavy shopping days like Thanksgiving and Black Friday to step up their game with push notifications, and were suitably rewarded. The study also showed that there are defined parameters that can be adhered to for making push notifications a success. The day of choice and the time of day are important factors in this regard.

These are indeed great signs for the future of mobile engagement for the retail industry. Companies who respect the unique nature of the mobile platform and its eccentricities can keep leveraging its huge potential in the holiday season by targeted mobile marketing campaigns.