Retail markets are heavily focusing on the use of Analytics for data analysis and classifying the customers. Essentially to understand the customer better for the overall business improvement. In general, majority of the retails are pushing Loyalty cards and these are the best sources for knowing your customer in a batter way. Once you know the customer, you are better equipped to know pulse and influence the target segment of customers by proper sales touch and relevant promotion schemes. The most important of all is who is willing to buy your product or service so that you deploy matching schemes that meet the customer needs and wants. You must understand the buying Patterns and trends. Based on Demand forecasting, you need to manage the inventory so that when customer asks, he is not denied. With proper demand equations, you can manage the vendor relationships and plan your cash flows too. You can leverage these demand by promotions. The analysis tells you the effect or control action of the promotion leaving aside the assumed organic growth. Operational issues and costs could be planned accordingly for optimum levels. Operational efficiency effectiveness is one of the big thing for all the sectors in this tough times and sure way for better bottom lines by reducing the wastes and inefficiencies. Once you understand the customer needs, you can even evaluate the life time value of the customer so that time changing needs are satiated by tweaking the offers for sustained as well as incremental growth prolonging the life cycles. Major retails like Pantaloons, Shopper stop etc., are using for better net profits quarter on quarter.
By Srilakshmi & Varanasi Subrahmanyam
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