How Algorithmic Merchandising Is A Game Changer In Retail

Algorithmic merchandising can be defined as the use of advanced analytics tools to analyze both structured and unstructured data and provide insights to facilitate retailers to offer an efficient, smooth, and enriched customer experience. While retailers have been using tools to analyze data to gain a competitive edge for some time, algorithmic merchandising uses AI and technologies such as machine learning to redefine how retail merchandising is to be done in times to come. Here’s why algorithmic retailing is a game changer in retail.

Provides Better Demand Forecast

The first step towards successful merchandising is making an accurate demand forecast which will shape the production and sales strategies of retailers. Merchandising analytics tools augmented with AI and machine learning features provide an in-depth analysis of different variables like real-time data, weather, trends, social media reviews, etc. that influence the shopping preferences of customers to help retailers chart out an accurate demand forecast. A precise forecast, in turn, helps retail merchandisers to strategies their store layout, inventory display, and customer-engagement plans to increase footfall and drive sales.

Helps In Monitoring Product Sale

Inability to closely monitor inventory management and products sale across stores have often led to situations where retailers soon run out of products customers prefer and are over-stocked with low-demand products which have to be cleared off at the end of the season sale. However, algorithmic merchandising does away with such problems. It allows retailers to keep track of fast-moving products, and reveals which products are under-performing so that they could devise strategies to boost sales of such products to maximize profits.

Optimizes Inventory Management

By using merchandising analytics tools, retailers can learn which products sell better in which stores in what season. This information comes in handy in allocating products in specific stores according to demand and improve sales. Moreover, during clearance sales, retailers can use insights provided by these tools to determine the pricing of products and create promotion strategies to attract maximum customers and clear stocks.

Enables Faster And Better Decision-Making

In retail as in any other business, it’s critical to make smarter and faster decisions to stay ahead of the competition. But such decisions could be only made when the retailer has access to accurate information. Merchandising analytics makes this possible, and according Gartner’s Hype Cycle for Retail Technologies, 2018, such tools have in fact improved and automated the decision-making required to facilitate as many as seven merchandising processes including price, promotion, allocation, and assortment.

Algorithmic merchandising is transforming retail, and it’s high time retailers make the best use of this technology to achieve their business goals. If you want to know how merchandising analytics models can help you boost your business, contact Manthan.  

Top Four Retail Merchandising Strategies That Drive Sales

In today’s highly competitive business environment, the challenges that retail merchandisers face are many. They not only have to steal a march on their fellow retailers but also have to put up a stiff fight to attract customers away from e-commerce portals which seem to be gaining popularity with tech-savvy customers every passing day. What they need, therefore, is a well-thought-out plan to up their game. Here are four top retail merchandising strategies to outsmart the competition and boost sales.

1.    Use Retail Merchandising Analytics

Data-driven merchandising is fast becoming the most preferred strategy to drive sales. Retail merchandising analytics involve analysis of data related to supply chain, inventory, customer preferences, sales, and other critical aspects to provide important insights which help retailers in their decision-making process. As a retailer, you can use such insights to plan your inventory, identify the most popular products in your store, adjust your stock levels according to customer demand, improve your store’s layout, change your marketing tactics, and more. In short, by using retail analytics you learn what sells and how to sell.

2.    Engage With Customers Through AI Tools

To attract customers to your store, you have to offer them something that’s not easy to find – a superior customer experience. And what better way to engage with them than to help them in their shopping journey through AI tools? AI tools can help you learn about customer purchasing patterns, predict customer demands, target customers with personalized messages, and perform many other functions to deepen your ties and give them a unique shopping experience.

3.    Adopt An Omni-Channel Approach

Apart from having brick-and-mortar stores, retailers are also opting for an online presence to attract more customers. This calls for an omni-channel approach to retailing that provides customers with a seamless shopping experience regardless of whether they are shopping offline or online. One of the most popular strategies under this approach is to invest in mobile apps or mobile-friendly sites as most people use their smartphones to make online purchases these days.

4.    Make Smart Use Of Social Media

Almost every retailer has some presence in social media. But opening a Facebook or Twitter account is not enough to encourage people to buy from you. Apart from posting ads, you can work with social media influencers, create targeted campaigns to drive traffic to your site, share usergenerated content, and also ask your loyal customers to recommend your products.

                                                                           

Conclusion:

It’s evident from the above discussion that retail merchandising analytics and tech-driven approaches are driving today’s retail merchandising and their role will only get bigger in future. If you are wondering how to use these strategies to boost your business, get in touch with Manthan.