Analysing consumer behaviour is an art. Or is it science? Difficult to tell, but it appears an abstract subject that requires technological intervention. Unpredictable consumer behaviour is something that has worried retailers for decades and they desperately needed a proper handle on this. Predictive analysis has become an important tool in this regard and retailers are piling on data much more than ever before to arrive at the right conclusions.
Earlier, technology was required only at the point of sale but today it is an all pervasive phenomenon as far as the retail sector is concerned. With heightened competition, stores need to know instantly what the consumer has in mind. How young is he, does he like formals, does he shop all by himself or with family? The store keepers need to know this to convert a foot-fall into a buy. They are looking at data that they can take advantage of and this is where business intelligence (BI) plays a big role.
The prolonged economic slowdown has forced retailers to look at every avenue to drive revenue. Any software system that can propel the same, has caught his roving eye. That’s why he loves data analytics and is prepared to pay for it. Tracking consumer behaviour with loyalty cards has become common place and its importance can’t be over emphasised from a retailer’s point of view. Data from loyalty cards help him to decide on stocks and brands and keep a watch on consumer relationship management.
Equally important is the technology at the back end. The retailer needs to have an integrated IT solution that ties up suppliers, warehouses, facilities, employees and consumers in a seamless fashion. Vendor management, supply chain efficiency and partner channel management are challenges that retailers have learned to tackle through effective use of technology tools and we’ll hear more about this in months to come.
– Darlington Jose Hector
Editor, Express Computer