We’ve said it before, and we’ll say it again: One of the keys to achieving retail success is to be more data-centric.
Relying on retail analytics and hard data rather than guesswork enables you to make smarter decisions toward higher profits, better customer satisfaction, and having a more awesome store overall.
The good news is that it looks as though many players in the retail industry have already recognized the importance of data. A survey by Alteryx and RetailWire of nearly 350 retailers and brand manufacturers found that 81% of respondents say they gather shopper insights and 76% consider insights to be critical to their performance.The bad news is that while many merchants are collecting data, most aren’t using it effectively. According to the study, only 16% consider themselves experts when it comes to data harnessing, while 24% and 60%, respectively, describe themselves as “newbies” and “getting there.”
Of course, we know being data-centric is easier said than done. That’s why we’ve compiled some tips to help you collect and harness data in your retail business. Read about them below, then see if you can put them into action in your operation:
Start with the right tools
You might be having difficulties with your data-centric efforts because you lack the right tools for collecting and harnessing information. Or perhaps you have the tools, but you don’t know how to use them to their full potential.
Consider the following:
POS
If your point of sale system is only being used to ring up sales, you’re definitely missing out. Most modern POS solutions these days come with reporting features that can shed light on important metrics such as profit margins, basket sizes, customer counts, sales trends, and more.
For example, looking at your sales reports will tell you exactly which products or suppliers are driving revenue so you can plan your stock orders accordingly.
That’s what happens at Podarok, an England-based retailer selling hand-made gifts. Podarok owner Andrey Pronin shares that they constantly use their POS system to dig into their sales data so they can make more reliable decisions.
“My favorite feature has to be the sales reports. By day, by month, by period, by hour, but most importantly, by supplier,’ he says. ‘We can predict what is going to happen next year and therefore plan our staff rosters and product ordering in advance. This saves us a lot of time, and therefore money. We only order what we need and know that will sell. We are also able to order only as much as we need because we can see how much was sold before.”
Another great benefit? Having the right data will help you serve your customers better. Consider the case of Dish The Fish, a seafood stall in Beo Crescent Market in Tiong Bahru, Singapore. Jeffrey Tan, the stall’s owner, told United Overseas Bank (UOB) that his POS data makes him keenly aware of the tastes and preferences of his shoppers, and he uses that information to improve their experience.
“I can see what these customers like and I can recommend other fish to them. You know what their tastes are like after a while. Sometimes they like it, so that’s good. If they don’t, they will tell me and I will suggest something else,” he told UOB.
“This is really where data makes the difference. You know more about your customers and their spending and eating habits and you can go one step further to build a relationship with them.”
Finally, your POS records can help you streamline your staffing and operations.
As Rieva Lesonsky, CEO at GrowBiz Media, writes in her article on Small Business Trends: “You can use information from your POS system and sales receipts to staff your store appropriately or make adjustments to your store hours. For example, if you find that customers rarely come in after 6.30 p.m., consider closing earlier or reducing the number of sales associates on the floor at that time. You can also use this data to plan for seasonal fluctuations in sales, helping you manage cash flow better.”
Clearly, retailers can learn a lot about their business and customers simply by looking at their POS data. So if you haven’t done so yet, explore the reporting features of your POS system and learn about the metrics you can track (and how to track them).
Featured Resource
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Email marketing software
If you’re keeping in touch with customers via email, be sure to track open rates, clicks, and times of engagement. Your email marketing software should provide this information, so always dig into that data whenever you send out messages to your list.
Open rate data can give you a better idea of which subject lines are working well, allowing you to optimize them going forward. Meanwhile, paying attention to when people are reading your messages could help you time your campaigns more effectively.
Foot traffic analytics
If you haven’t done so yet, consider implementing foot traffic analytics solutions in your store. Tools like people counters and beacons can provide data such as customer counts and dwell times, among others.
With that data, you can glean more information on how much traffic you’re getting, the parts of your store getting the most and least visitors, and more.
