There are a number of touch points that make up a holistic approach with each component having its own set of challenges to the business. In part one of this article we look at 2 of the 4 components being creating a strategy and understanding the appropriate channels from where we’ll be acquiring it.
It goes without saying that having a strategic approach to managing the capture, collation and output of data is critical. This is more than simply ensuring that we have a suite of standard reports, such as sales by product group or gross margin return on investment. This is achieving a forest view of the information we need to publish to all levels of the business that drives the operations based on past, present and future insight. This might be where we need to expand our data scope and output and potentially look at what inputs are seen as unstructured data. For example Gartner found that business that enable their sales representatives to leverage data on a day-to-day basis stood to increase revenue productivity by 17%. That could be a considerable increase for many retailers, although there still seems to be issues with collecting and providing the relevant information to the staff in real time.
Tracking, analysing and publishing data with its considerable variety and velocity can prove cumbersome. Many businesses will embark on a complex merchandising and allocations program with the goal to predict and ensure the appropriate stock is in store or online, although much of the intelligence on the actual floor or website is either not translated back to head office or exposed to staff fast enough to increase productivity where it matters most.
What data and where it will be coming from is a challenge. From sales per hour to basket size and gross profit there’s a mountain of transactional data that our IT systems might already be capturing for analytical purposes. But what about the non-transactional aspects of our retail environment. Is there a channel of information that we are yet to capture?
With the rise of Big Data or large amounts of data/unstructured data there has been an increase in market insight not seen previously. Big data has been linked to predictive analysis, take for example discussions regarding your specific business or the market captured via Twitter or Facebook. Customers might be speaking to their desires, future transactions or even frustrations. These conversations could provide not only a directional path but form the future framework for our business processes.
Then there’s that more localised data that speaks to business directly. Take for example the weather or average localised temperature which might provide valuable insights into buying patterns and supports benchmarking between locations. We might all agree that the weather is getting warmer but how does this translate to sales during those periods and how do we reference this against hard transactional data in the future? A snapshot of the number of car spaces available throughout the day, events such as sporting matches or local theatre all create anomalies in spending patterns that our historical data simple doesn’t have the means to interpret.
Stay tuned for Part Two to follow next week.
For more information on this subject please register for a Webinar being held by Power Retail on October 31st 2013.
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