Top 5 predictive analytics use cases in the retail industry
Predictive Analysis is a detrimental strategy whereby retailers can make use of data from the past to anticipate likely deals. Retailers can acknowledge the trends in shopper practices. This will help the retailers to be top-notch players getting an upper hand in the market shares. Here are 5 use cases where predictive analysis proves to be the ultimate game-changer in the Retail Industry.
“50 percent of companies who master the art of customer analytics are likely to have sales significantly above their competitors.” – McKinsey
1. Inventory and supply chain analysis
Logistics and inventory data can be used to comprehend the complex yet flexible ties of business execution and returns. Retailers are very much aware of the huge strain to improve resource usage, financial plans, exhibitions, and administration quality. Predictive analysis happens to be a boon here offering a cost-effective strategy with improved operational effectiveness.
2. Catering to the ever-changing demands
Online purchases have completely transformed the traditional landscape. Meeting demands with heightened expectations constantly keeps the retailers on their toes so as to provide a seamless experience. Customers look out for predictable data that reflects the history and manifest their interests. Advertisers need to be strategic for their campaigns to get an effective yield. This is only made possible with Predictive Analysis.
3. Gauging erratic customer behavior for pricing
The trickiest part of any venture is to improve client transformation rates by consistent efforts in customizable advertising. Predictive Analysis gives prospects of more income yet maintaining a decent balance after bringing down the final pricing. It has become easier to interact with customers via online stops of social media and websites. But this also causes a significant increment in the unpredictability and the variety of data that needs to be collected which further needs a different mechanism of break down. If done right and grouped correctly, one can get incredible results that were unimaginable before. The retailers can know their regular customers, their motives behind the buy, and the recurring pattern of their purchase and when to market them in what channel. Improvising these point by point experiences expands the likelihood of securing the client.
“When marketers were asked which best describes how they measure the impact of data-driven marketing initiatives, the top three responses involved customer experience: 56 percent responded to customer loyalty; 55 percent answered customer satisfaction; and 54 percent cited customer retention.” – Forbes
4. Propelling impulsive buying
These days people are drawn towards making an online purchase where they can browse through a large display of items with viable options using mobile apps and e- commerce sites having end to end tracking. Marketing schemes can be easily planned so as to customize the buying experience based on browsing history revealing a lot about their interests. This makes targeting simpler. Effortless build-up drives reliability by promoting offers to boost shoppers’ visits to make impulsive purchases accomplishing more deals. Predictive Analysis also measures the effect of various advertising and promoting strategies on customer behavior and deals.
“60 percent of marketers believe that data-driven marketing drives profitability.” – Forbes
5. Bid adieu to frauds
Predictive analysis keeps track of suspicious activities saving retailers from frauds. Fraud detection mechanisms are exceptionally proficient at distinguishing cynical behavior giving off alerts after fraud predictions. This not only saves money but also uplifts the reputation and branding.
Every retail organization is piling up the information which is growing exponentially every day. This storehouse of basic information is useless if nobody interprets the data chunks giving insights into the shopper's mentality and the winning market patterns. While the entirety of the information is being created and gathered, Predictive Analysis makes sure that these are utilized productively.