As a retailer, do you have good-quality data? Finding and using the right data to scale up your business can immensely benefit revenue growth, but this isn't always easy.
You could look at many data points and big data analytics, but there's not much time to really dig into each of them and see how it could help you improve your retail business. If you want to be a successful retailer, there are three questions you need to ask yourself: • • •
What am I selling? To whom am I selling? How can I reach my customers?
The answers depend on your goals. The more specific the goal, the easier it is to figure out where your data should go. For example, for the fashion industry to grow, they need good quality data to showcase its products, and this is done only by having good retail analytics. To help you with this task, here are some ideas on how to use data to boost your retail business performance. 1) Track what you can measure One of the most important metrics for retailers is the sales conversion rate. This is the percentage of visitors who purchase an item in your store. You can calculate this by dividing your total sales by the number of visitors who came into the store. If you find that this metric is low, there are a few things you can do to help improve it: • • • •
Use effective window displays that attract attention, such as a sale sign or an attractive mannequin display. Offer free samples to potential customers. Maintain a clean, organized space with all items on display so shoppers can easily see what's available. Make sure that staff members are friendly and helpful so they can assist and meet customer curiosity about products and sizing.
2) Use Excel spreadsheets To make your retail business more successful, you need to know what's going on with your inventory. This can be hard if you're not set up with the right tools. Retailers can use big data analysis and Excel spreadsheets to scale their business in no time. • • •
Collecting customer feedback - For customers to return, they need an emotional connection with the retailer. A simple way to do this is by asking them how they felt after visiting the store. Start using a CRM system- You should also consider using a CRM system to track all interactions between customers and employees. Analytics are key- Data analytics is one of the best ways to increase revenue at any company.
3) Use comparative analysis Competitors are an important part of any business strategy. It's not just about who you're competing against but also what they're doing well and how you can improve. Here are some tips on how to keep up with your competition and use data in the process: • •
Make sure your product is differentiated enough to stand out from the crowd. Keep a close eye on your competitors' social media feeds and try mimicking their strategies. If a new marketing trend seems like it would work for you, it might be worth giving it a shot. You don't want to be caught off guard by another company coming in and stealing all your customers.
4) Always be looking for trends More than ever, retailers in the retail industry rely on data to help them make smarter and faster decisions. One of the most important things retailers should be looking for is trends. You can do this by analysing your past sales, which will give your insight into what your customers want and how they shop. It will also let you know when it's time to change inventory or a new marketing campaign. Trend analysis is a powerful tool that every retailer needs in their arsenal. 5) Ask yourself where are you losing customers? Retailers can lose customers in several ways, but the most common reasons are a bad customer experience or a lack of product availability. For example, if your store is closed too often or you don't carry what they're looking for, they will leave without purchasing anything. Or if the customer service is poor and you can't help them find what they want, they may never return. Moreover, they'll go elsewhere instead if there's not enough inventory when they visit. These problems are very easy to identify through data-driven solutions in the retail industry, and there are some practical solutions that retailers can implement. Conclusion If you're looking for ways to increase your sales and revenue, think about using data and going for retail analytics. To put it simply, if you know what's selling, where it's selling, who's buying it, when they're buying it and why they're buying it, then you'll have the power of complete control over your business. You can take this knowledge and act on it by changing prices to respond to demand or adding new products based on customer feedback. In other words, as long as you've got access to reliable data on these four key factors, you'll be able to make informed decisions that will drive more customers into your store, which means more sales. 👉 Keep learning with us, visit us at https://humanata.ca
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5-2164 Montreal Road, Suite 8053, Ottawa, ON K1J 1G4
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