Adoting analytics in retail
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ADOPTING ANALYTICS FOR DECISION MAKING IN RETAIL
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Importance of adopting Retail Analytics
Transcript of Adoting analytics in retail
ADOPTING ANALYTICS FOR DECISION MAKING IN
RETAIL
AGENDA
Analytics: A business reality now
Why do we need Analytics?
Implementation Plan
Expected benefits
Taking the next step…
Analytics: A business reality now
Focus is on fact-based rather than gut based decision making.
Analytics is a strategic weapon for businesses.
Customer analytics are driving big data initiatives. 53% of big data efforts underway by retail companies are focused on achieving customer-centric outcomes
Organizations are being practical about adopting Analytics
74% of retailer say that leadership is totally or highly committed to analytics.
Analytics in Retail Opportunity to achieve competitive advantage from
‘Analytical Retail ‘ is enormous.
Few examples:Kroger gets a 40% redemption rate from its
analytically target coupons compared to industry average of 2%
Tesco uses supply chain analytics to save $100mGerman retail giant Otto Group used predictive
analytics to save $20m
Analytics: A business reality now
Why do we need Analytics?
Implementation Plan
Expected benefits
Taking the next step…
Why do we need Analytics?Pain Points of the Company
The companies YOY revenue growth is not meeting our expectations
Retail shrinkage of the company is 2% of our annual retail sales
The attrition level is 5% above the industry average
Why do we need Analytics? Opportunities to explore
Develop close relationships with customers based on a deep understanding of their behaviors and needs.
Determine the best use of marketing investments.Balance inventory with demand so that we are
never out of stock or carrying excess inventory.Locate stores, distribution centers, and other
facilities in optimal locations.
Analytics: A business reality now
Why do we need Analytics?
Implementation Plan
Expected benefits
Taking the next step…
Implementation Plan
HR Analytics
Fraud Analytics
Supply Chain Analytics
Marketing Analytics
Implementation Plan
HR Analytics
Raise Visibility
Align HR data with business data
Predict the future
Implementation Plan
FraudAnalytics
Cultural Assessment
Understanding activity Patterns
Continuous monitoring & innovation
Supply Chain
Analytics
Inventory Management
Sales Forecasting
Implementation Plan
Implementation Plan
Marketing Analytics:
Evaluate consumer purchasing behavior, identification of
the combination of the products buying together
Predictive modeling to evaluate price elasticity, margin
target, profit and revenue maximization
CRM analytics(demographic, psychographic & purchase
behavior), cross-selling and up-selling strategies.
Better store layout planning and assortment optimization
Infrastructure Requirements
Developing a CoEDedicated captive center for analyticsBuilding expertise in analyticsCreating awareness
IT requirementsAnalytical tools and softwareEDW
Analytics: A business reality now
Why do we need Analytics?
Implementation and Execution plan
Expected benefits
Taking the next step…
Expected Benefits• Our YOY revenue growth will be 15%
Current Vs Expected EBIDTA
• Projected increase in the operational efficiency is 26%
• We would be able to reduce our retail shrinkage to 1%
• We would be able to reduce our attrition level by 10%
Taking the next step…
Need your support, commitment and desire to implement.
Start building the team
Spread the awareness among the employees
Questions
