Did you know that advanced analytics helps retailers to monitor, figure out, and reap the maximum benefits out of each stage in the shopping path on grocery channels? When you shop at a grocery store and receive discount coupons on your favorite ketchup, soup recipe, breakfast cereals, and more, it means you are getting customized coupons. Yes, the retailer is leveraging data analytics solutionsto reward you because you are a loyal customer to them. The store wants to retain shoppers like you by delighting you with discounted deals, coupons and offers.
Not all of this is as simple as it sounds. These days, retailers are using data mining, data integration, and advanced analytics right at the backend to come up with the best offers for the right customers. Here are some of the best strategies used by grocery stores for enhanced customer insights:
Custom deals, promotions, and offers for customers
Email marketing campaigns are no longer that effective and you need to accept the fact. Data shows that customers receiving loads of emails from the same grocery stores are switching to their competitors. Today, smart retailers are tying customer data with personalized deals and coupon offers. You will like to see relevant deals and discounted offers in your inbox that interest you, not something unrelated. It is as simple as that.
The offers and discounts are usually on the products that you buy from a grocery or retail store near you. You will never get offers on the items you do not usually buy. Retailers use advanced analytics to volumes of shopper data and customize them to customers depending on their shopping history, behavior, or habits.
The redemption coupons have great value and usually, the trend is around one percent to three percent redemption.
Target, for example, makes use of advanced analytics tools to associate customers’ shopping behavior or habits with their shopping cart or basket. This way, Target identifies customers, who are pregnant, and using the data, the retailer offers promotions and discounts to women at various phases of their pregnancy. Did you know that Target’s sales between 2002- 2010 on baby and mother products increased from $44 billion to a whopping $67 billion?
Managing shelf life of products and planning for replenishment
Today, you will find in-house departments for meat, dairy items, fresh produce, bakery, and seafood, and they require inventory planning by the hour. You will notice this trend in grocery and foods and not in any other segment of retail. A close understanding of customer behavior and customer demand patterns with the use of manufacture data analytics, high-end customer analytics, as well as forecasting tools do help retailers to ensure optimized inventory, attain quick turn-rates, and cut back wastage on perishable products.
When it comes to analytics tools, they help grocery stores or retailers to keep track of and evaluate signals for demand in products involving activity cycles during peak time sales, all through the day, and local events, store traffic, social trends, holidays, seasons, and of course, local purchasing habits of customers.
The modern retail analytics tools focus on region-specific and SKU-level as well as store-level information for all relevant data. It helps retailers to make informed decisions based on the usage of such data.
Enhancing store aisle designs as well as planograms using market basket assessment
Did you hear about market basket analysis? It is a modern analytics tool allowing retailers to figure out unseen resemblances between items and detect the occasion initiating a shopping trip. Did a customer saunter into a grocery store to buy a couple of products that she found was exhausted? If so, this is convenience shopping. Or is she stocking more items for the entire month? This is replenishment shopping. Is the customer going for a vacation, throwing a party, or tossing up some exotic meal? Now, retailers leverage these insights so that they can create enhanced shopper experiences to meet their precise needs, no matter what the occasion is for the shopper.
For example, get in and out areas right at the front of retail supermarkets, self-service check-out, express, as well as drive-through facilities help in fast pick-up and invoicing of particular products by convenience customers or shoppers.
Again, many leading grocery or retailers are stocking up on extra products, like compact discs, stationery items, and even pharmacy so that they can avert replenishment buyers from diving their shopping carts or baskets across other retail shops and become the one-stop store that these customers are looking for all this time.
Today, the retail or grocery industry is changing fast and for the good of customers. Besides customer analytics tools, retailers are also focusing on finance data analytics to customize offers depending on the budget of shoppers. Retailers these days are offer one-off deals depending on the retail data model with a profound understanding of the processes and degrees of the food and retail sector.
The actionable analytical potentials of the data analytics solutions assist each level in grocery or retail operation from store agents to the chief executive officer figure out which items have maximum price elasticity, how consumers respond to combo offers, and whether the promotions and discounts are appealing to the customers. Whether it is about making shoppers spend more for each shopping trip or designing on the spot, cross-selling campaigns, analytics tools, and actionable intelligence can give more power to retailers or grocery stores a great competitive advantage so that they can expand their business, market share, and make more profits.