The Retail Analytical approaches or planning the Retail Strategies analytically help the Retailers to know their customers individually. It also helps in making the Retailers to save their money and limit bad expenditure.
Knowing the customer’s behavior is the key to success for the Retailers.
The Retailers who know their customers well are making much profit than the Retailers who are unknown to their customer’s needs and wants. When the customer’s behavior intersects with goals of the retailers or the suppliers then the profit rate is at the peak. This can only happens when the retailers know their customers very well. Thus Retail Analytics is very much necessary. It has been found that if the offers or the discounts arranged for the customers are being made maintaining various retail analytical strategies then the profit maximization rate for the retailers is also high.
Problems faced by the Retailers:
One of the very common problems being faced by the retailers is that they are unable to understand how to react and treat their individual customers. This is a common problem for in store retailing. The retailers also sometime face a problem in deciding what the offers should be or discount to be offered to their customers. Another mistake made by the retailers unknowingly is that, when a new customer enters the retail shop the retailers are unknown to the customer’s potential or the customer’s behavior so they treat every customer in the same way. To meet with this kind of situation various retail analytical strategies and plans should be designed. Coupons can be given at the entrance of the retail shop or discount offers can be sent as email to the existing customers. By seeing the response of various customers the customer’s behavior can be judged.
Retail Analytical Approaches made by the Retailers;
- There are certain actions that the retailers plan and are then targeted to every customer might they be new or old. These types of actions are known as the collaborative filtering action. These types of offer or the discount are often being targeted to the customers of the online store or in-store.
- The retailers also sometimes make their offers or discount by dividing their customers into small groups. These groups are made according to the customer’s choice, customer’s behavior. This type of segmentation among the customers is most commonly being termed as the behavioral segmentation. This is a retail analytical process that can be done when the retailers know their customers very well. These types of retail analytical approaches also help the retailers to save some expenditure without spending on unnecessary offers or discount. The retailers also can spend the money on n house designing, preparing various new merchandising scheme or building up new promotional strategies. This segmentation among the customers also helps the retailers to serve their customers who are very important for their business.
The Retailers also sometimes plan the offers and discount by predicting the behavior of the customers individually. These retail analytical approaches are known as the propensity model. These retail analytical approaches can be used by the big retailers who deals with ten to twenty millions customers each of whom plays an important role individually for the business. These propensity models help the retailers to know the individual customers buying behavior. This also led the retailers to prepare various unique treatments towards their customers.