Nowadays, as customers work from home and practice social distancing by avoiding brick and mortar outlets, retail sales are at an all-time low. In addition to unsold inventory and low footfalls, businesses are also facing problems in predicting customer shopping practices. As a result, it has become difficult for retailers to provide personalized recommendations and loyalty programs. In order to tackle such critical issues, businesses must rely on data analytics and other AI-based advancements.
Predicting Customer Shopping Patterns
As government eases on lockdown restrictions and businesses across the industries reopen, the market is witnessing a drastic change in customer tastes and preferences. According to a recent market study, over 60 percent of customers have reduced spending patterns during the past couple of months. In addition, many of the customers are now shopping from retail outlets that implement proper health and safety precautions. And, to gain real-time information on changes in such preferences, businesses must rely on data analytics.
Industry experts believe that Analytics assist businesses to collect and process accurate and real-time data which is vital in critical decision making. Furthermore, it also provides a deep understanding of brand performance and market growth. In the highly competitive market, business owners must invest in Data Analytics to monitor and maintain inventory or stock level and avoid misplaced or damaged goods. This allows effective management of supply chain practices and enhances operational efficiency.
Statistically, over 80 percent of business owners consider data analytics as a vital tool for overall organizational growth. During these difficult times, companies must invest in data analytics to enhance current offerings and improve in-store footfalls. Data Analytics allows seamless transfer of customer data across various devices. As a result, retailers can gain access to relevant data and ensure overall market growth.
Impact of Industry Challenges
During the pandemic, the industry witnessed a rise in online threats. As a result, the need to implement new and improved cybersecurity measures is vital. However, firms must also train employees to ensure optimal utilization of such strategies and promote data security and privacy within the organization.
As businesses reopen across the region, the government has launched various guidelines to confront the spread of COVID-19. With the help of Data Analytics, companies can manage staff and customer movement effectively within the premises. Moreover, firms can also maintain store capacity as per mandated government safety guidelines and protect their staff and customers.
In today’s data-driven economy, existing business models are unreliable, and thus Analytics ensures that businesses gain access to up-to-date information. These advancements gather data from sources such as customer interactions, website visits and social media. As a result, firms can acquire new and retain current customers with ease and increase the overall revenue generated. From gaining a competitive edge to satisfying customers, businesses that rely on Analytics are expected to survive and grow during these unprecedented times.
Written By: Rajiv Prasad