Retail growth has become increasingly complex in the modern retail landscape. Consumer needs and expectations are evolving as fast as ever. As a result, data analytics is gaining massive popularity as it solves retail complexities and capitalizes on customer behavior.
To summarize, collecting and analyzing data is useful as it allows retailers to:
- Shift from product-centric to customer-centric business models.
- Shift from data siloes to integrated data analysis.
- Elevate decision-making by reducing guesswork.
- Enhance evaluation opportunities.
- Formulate predictions and mitigate risk
The shift from product-centric to customer-centric business models
Business growth now is not just as simple as selling a product or service, it is a constant struggle to retention of existing customers and acquisition of new ones. Having just a product-centric approach to selling, therefore, is deemed insufficient amidst the rapidly evolving consumer preferences patterns. With more and more options to choose from especially after the onset of the rise of e-commerce, consumers are exploring bargain-hunting opportunities and indulging in price comparisons making them more aware than ever.
Consumer behavior analysis, thus, is crucial to introduce objectivity in business operations. With high-tech solutions including people counting, POS system, and warehouse and inventory management at their disposal, retailers can now easily observe customers’ responses to their products and stores; physical or digital.
