How Business Intelligence Application In Retail Industry Enhancing Shopping Experience

Changing business landscape of retail industry is impelling enterprises for technology investment, planning down to the last detail, and execution capabilities that can merge futuristic demands with present effectively. Business Intelligence application in retail industry is giving competitive business insights for delivering additional value to consumers. Global retailers are making better decisions with data-driven insights on store performance, customer engagement, sales and marketing, product merchandising, and inventory management. In this blog, we will discuss prominent impact of BI solutions on retail industry.

Substantial Benefits of Retail Business Intelligence

The key advantage of BI is that it allows retailers to make better data-driven decisions, evaluate core KPIs, and ultimately run their businesses more efficiently. Following are some examples:

• Predict changes in consumer demand.
• Personalize product recommendations, marketing campaigns, product discounts, and more.
• Anticipate supply chain disruptions.
• Improve merchandising.
• Better inventory management.
• Unlock insights from customer journeys.
• Analyze customers’ response to different product pricing levels.
• Predict the impact of product price changes.

Important Role of Business Intelligence in Retail Industry

Following are some of the key ways Power BI application plays a key role in revolutionizing the retail industry:

Product Analytics
Retailers can leverage Business Intelligence for product analytics. It has become vital in the age of eCommerce. Due to the emergence of multi-channel sales, retail enterprises need to ensure that consumers have the right product at the right place in stock at all times.

Hence, product analytics can help you exercise control of your inventory, giving you the upper hand when it comes to making decisions about which products will be the most profitable. BI Analytics can quickly spot which products are selling well and need increased stock while also identifying underperforming items that can be discontinued. Predicting future demands, BI can ensure that your business never runs out of demanding products and restock items before they go out of stock.

SKU Optimization Analysis
Retail firms need to adapt to rapidly changing consumers’ preferred point-of-sale (POS). SKUs that generate the most revenue should be placed strategically in the store as well as on digital channels. Using BI models, firms can optimize their SKUs and increase sales. You can also use BI reports to gain insights into factors that contribute to lost sales at outlets and low-performing SKUs so that necessary business decisions can be taken. This analysis can also help you optimize supply-chain networks while enhancing brand promotion and customer satisfaction levels.

Store Analytics
One of the key advantages of business intelligence in retail industry is Store Analytics. This new-age interactive data analytics helps you uncover distinct patterns in sales, customers, inventory, and profit margins in each store, and optimize store operations across locations. You can get insights into factors that contribute to low-performing stores or discount schemes not increasing sales and then take necessary action.

Price & Trade Promotion Analytics
With built-in advanced data analytics techniques, ebizframeBI application can help you understand price and promotion dynamics in retail business. BI models are built simultaneously for each SKU in specific categories to estimate its price and cross-price elasticity. To enable better planning and execution of promotional events, these models are used to design and develop a Pricing Optimizer and Promotion Calendar results in more effectiveness of trade promotion strategies.

Wrap Up

In today’s business environment, retailers who want a leg up on their competition to deliver the most value to their customers must embrace business intelligence and analyze business data sets to improve their decision-making. Leveraging these solutions, retailers can improve their performance across stores and build the future trend of retail.

If you’re interested in knowing more about how a BI solution like ebizframeBI can help your retail business, reach out to the ESS BI Experts team. We are a Microsoft Power BI Partner and can help you get started with BI tools and applications seamlessly. Contact us at marketing@essindia.com

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