How is predictive analytics changing the retail industryBlog by Glorious Insight
In today's era, everyone is confronted with staggering amounts of data on a day-to-day basis. The same goes for retail businesses around the world. They are surrounded by loads of data generated daily. However, this huge data needs to be converted into meaningful information to be of any use. This repository of valuable data would be worthless if it cannot be turned into informative knowledge about the customer's behavior or establishing the trends in the markets. There are many instances where businesses generate and collect data but what they fail to do is to use them efficiently and effectively. This is where predictive analytics come in handy. Predictive analytics allow decision-makers to get the best value of the data collected and ensures sales maximization. Glorious Insight deals efficiently with predictive analytics in the retail industry. The company forecasts figures in the retail market with great accuracy so that the desired sales goals are achieved.
Predictive analytics is a systematic process wherein retailers can analyze the data from the past and use it to predict or forecast sales growth. It analyses factors like consumer behavior patterns, change on market trends that helps various businesses stay ahead of the curve, compete with their competitors, and most importantly gain competitive advantage.
When it comes to the gathering of data, retail businesses have it in ample when compared to other industries. A modern and dynamic retail business is always loaded with data that helps them execute a successful business and build a strong rapport with their customers. However, the big question that remains is whether they can convert the available data into useful insights. With the cut-throat competition and the changing dynamics of businesses, they must make the most out of the data they have at their disposal. They must garner useful insights out of the huge amounts of data and find actionable and meaningful information. This will not only help them run their business successfully but also increase their efficiency and profitability.
Companies like Glorius Insight are getting more and more efficient when it comes to forecasting vital stats that are business-specific so that the managerial decisions can be taken successfully. They employ a robust business intelligence model and create an all-inclusive plan based on market forces of demand and supply. Their goal is to help both small and big industry players to sustain and grow by providing useful insights.
√ Redefining Retail Industry
The retail industry has drastically evolved over the past decade. With the advent of digitization, the challenges in the retail market have increased in terms of demographics, choices, and consumer preferences.
Let us look at various trends which can affect the retail market in the upcoming years:
• Glass Box and Brands
In the present era, the presentation of a commodity is as important as the actual stuff. Brands now need to look more actively and purposefully at the culture and trends that are emerging around them. Companies need to work on what their brand convey to the target audience.
• Online presence
In the present era, the presentation of a commodity is as important as the actual stuff. Brands now need to look more actively and purposefully at the culture and trends that are emerging around them. Companies need to work on what their brand convey to the target audience. E-commerce will be the new normal as it is swiftly moving towards becoming the most popular medium for shopping. The e-commerce sector has been growing at a rapid speed and is forecasted to expand by 13.2%. It will be indispensable for retail businesses to have an online presence in the coming years. Besides having an online presence, retail traders would need to evaluate new and innovative ways to differentiate themselves and create value for customers out of an increasingly saturated crowd.
• Faster access to the consumers
E-commerce is the most popular and convenient medium for shopping across the globe. It is also the most preferred medium of choice for youth shoppers. According to some studies, the online market has expanded by 12% in the past five years. Mostly all the renowned brands have an online presence which also offers you to compare prices with other brands online and make the best buy. E-commerce is maturing at a faster speed and therefore, it is required that the time gap between the placement of an order, and its delivery should be as minimum as possible. Companies like Amazon have programs like Amazon Prime that offers a two-day shipping standard plan or a same-day delivery premium plan to benefit the customers. To attract customers, it is important to take care that they aren’t compromising on their buying experience in any manner and providing maximum satisfaction.
• Preferences to Subscription E-commerce
Providing your customers with flexible billing and payment option adds an extra edge to the recurring business model. An E-Commerce subscription collects a recurring payment in exchange for product delivery or some ongoing service. Such a business model offers multiple benefits as it attracts more customers. It is easy to pay in parts as compared to giving the complete amount in one shot. It is because a high price may make only limited sales of products and services. Subscription payment eliminates this barrier of high price and attracts more potential customers in the long run. Also, one gets immediate access to the product in such a payment model. Subscription E-Commerce promotes the growth of monthly recurring revenue (MRR).
√ Significance of Predictive analytics
Glorius Insight uses business intelligence in the retail industry and constructs a comprehensive demand planning in retail businesses. This demand-supply planning is then used to forecast various strategic figures and stats that can be used by the retail industry players to gain an edge over their competitors. The key thing here is that the team at Glorius Insight is known for its forecasting accuracy in the retail industry and has helped several businesses to grow. The approach of predictive analytics helps resolve many problems faced in the conventional business process. The common benefits of predictive analytics include:
• Prevention of a criminal offense: As far as online retail markets are concerned, cybersecurity has become a serious concern. In-depth predictive analytics of business trends helps examine network behavior in real-time and can detect abnormalities if any which can be fraudulent or lead to advanced persistent threats.
• Forecasting inventory and managing resources: The predictive analytics approach is followed by multiple companies to improve operations and manage resources in a better way. Global Insight is one such organization that uses a predictive model to attract and grow customer relationships and according improve business functionality.
• Risk reduction: With the help of predictive analytics, a credit score can be generated from each customer to keep track of a person's credibility. Also, insurance claims can be analyzed to assess a buyer's shopping history.
Global Insight emphasizes the use of large data collection of both structured and unstructured data to analyze the hidden patterns and inter-relations between trends, customer insights, and other business data. In the fast-growing retail market that works on demand-supply chaining, the retail companies need to use a proactive approach to access new and extensive data sources efficiently. The predictive analytics approach helps retailers achieve a thorough knowledge of customer data and offers insights to lead the retail market.