It is estimated
that the future of grocery shopping is going to be hugely influenced by data in
the coming years. Retailers are trying their best to leverage one of the most
significant tools in retail marketing to keep people coming to grocery stores:
data. With the help of grocery marketing analytics software and data, the stores can achieve a competitive advantage
and understand customer behaviour in a far better way.
The digital age has made it possible for all types of businesses – be it big or small to compete on an equal footing. Grocery stores have realised that the future of shopping depends on leveraging information about shoppers – what and how they buy products to fulfil their needs. One of the largest retailers – Walmart has used predictive analytics for years now to forecast demand, understand customer purchasing behaviour and set prices accordingly.
The emergence of artificial intelligence (AI) is changing everything in the grocery business – from demand forecasting and promotional planning to price modelling and assortment shifts.
There are certain best practices that retailers can use to leverage their sales with data analytics.
1. The future of business forecasting
Advances in grocery marketing analytics software enabled grocers to include more intricate cross-product relationships and affinities into forecasting models. With traditional predictive analytic solutions, complex interdependent factors such as product affinities, customer proximity to stores, cross-price elasticity, and customer proximity to competitive stores could not be estimated efficiently.
2. The power of price optimization
Retailers face a huge challenge when it comes to optimizing price to maximize their profits. It becomes difficult for them to identify several factors such as rapidly changing costs, increasing competitive activity in the market and customer expectations when it comes to price optimization. With the help of data analytics, all these factors can be predicted with a high level of accuracy which ultimately can benefit a business immensely.
3. Improve
promotional activitiesAdvances in grocery marketing analytics software enabled grocers to include more intricate cross-product relationships and affinities into forecasting models. With traditional predictive analytic solutions, complex interdependent factors such as product affinities, customer proximity to stores, cross-price elasticity, and customer proximity to competitive stores could not be estimated efficiently.
2. The power of price optimization
Retailers face a huge challenge when it comes to optimizing price to maximize their profits. It becomes difficult for them to identify several factors such as rapidly changing costs, increasing competitive activity in the market and customer expectations when it comes to price optimization. With the help of data analytics, all these factors can be predicted with a high level of accuracy which ultimately can benefit a business immensely.
Data analytics help to understand the customer intent by analysing the purchasing behaviours of the customers. Customer analytics for supermarkets play a significant role in helping retailers to understand the market scenario and promote their products according to the preferred taste and purchasing power of the customers.
Thus, find out more about how to leverage your retail business with advanced data analytics at Manthan.
