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How to Use Retail Analytics to Increase Sales and Customers

According to retail market research companies, relying on data and retail analytics is much more beneficial for a retail business rather than relying on guesswork to make their business decisions. Solid data and in-depth analytics can help you make smarter business decisions that can lead to better conversion rates, higher profits and customer satisfaction, thus, providing a better overall in-store experience to the customers. 

In this article, we discuss how you can effectively use retail data analytics to improve your customer experience and sales. 

Use the right tools

There may be some difficulties in initiating a data-centric approach for your business because you may lack the necessary tools to collect data and harness the available information. Maybe you have acquired the tools but do not have the required expertise to properly use the tools to their fullest potential. The essential tools for better data analytics include:

POS

If you do not have a proper POS or Point Of Sale system, or you are only using it to do more sales, then you are greatly missing out from using it to its fullest potential. The modern POS solutions have various reporting features which provide insights on various key retail metrics like customer counts, basket size, sales trends, profit margins,  and more. For instance, the sales reports generated by the POS system will inform you of the right supplies or products that are driving the revenues. This helps you to plan your inventory accordingly.

Email marketing software

If you connect with your customer through email, then you must check and track the email open rates, times of email engagement and clicks. The email marketing tool must be able to provide you with this vital information. Therefore, you need to dig into the available data when you plan to send out email messages to your clients on the list.

Data on the open rate of emails can provide you with better insights on the types of subject lines that work best on the customers. This allows you to optimize the positive outcomes of email marketing for your future marketing campaigns. Moreover, real-time data on the time during the day when most customers are reading your emails can help to time the email campaign can be planned more effectively.

Footfall analytics

This is an important metric that every retail business should implement. If you have not done it yet, you must implement footfall analytics at the earliest in your retail store. Various tools such as beacons and people counters could provide valuable data on the number of customers that have entered the store and their dwell times inside the store. This helps you make better decisions on the inventory and work on the customer satisfaction level to provide an overall better shopping experience. 

Dig into your historical data with retail analytics

We learn from our past, and this holds for retail businesses as well. Visiting previous inventory and sales data can provide valuable insights about customer behaviour and your performance. Armed with better insights from the historical data, you can create and implement a better action plan for your business. In addition, digging into historical data allows you to identify and rectify your mistakes, allowing you the opportunity to boost the conversion rate of your business while providing a better customer experience. 

You could find valuable information about the bestsellers last season, customer behaviour, specific customer spendings, supplies, or popular products among the customers. All this information can help you plan better promotions and marketing campaigns to bring your old and existing customers into your retail store. In addition, proper retail analytics could help you make more intelligent business decisions to better your business in the future. 

Mix and match reports or metrics

Analysing or focusing on a single metric or report is like analysing just one aspect of the business; you cannot see the whole picture. This limits your understanding of business performance and restricts you from fully appreciating the value of the data. 

To achieve the maximum from the collected data, you need to analyse it through different metrics to get valuable insights into your business performance. Instead of focusing on just one report or metrics, you could mix & match the reports or metrics to gain deeper insights from the collected data. 

These are the top ways to effectively use retail analytics to improve your conversion rate and attract more customers into your business. 

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