Retailers banks on big data
Indian retailers are banking on big data to meet the demands of modern-day customers and drive future growth, according to a report released by global management consulting firm #A.T. Kearney and the #Retailers Association of India at #Retail Leadership Summit 2017 held in Mumbai 15-16 February.
Titled, ‘Agile and Collaborative Retail Value Chain’, the report highlights that 71 percent of India Retailers believe that advanced data analytics will be an important capability that drives growth in the next three to five years. It adds that more than 95 percent of retailers rely on data driven decision making. The move towards data analytics is being shaped by the growing digitization of the retail industry, which has seen both customers and retailers increasing their reliance on technology.
“Customers of today are connected as they have never been before and navigate seamlessly through various technologies at their fingertips. This has raised their expectations from the retailers. Customers demand the right product, at the right price and at their convenience. Most importantly, they seek an integrated experience across all platforms – digital and physical, when looking for a product,” says #Subhendu Roy, Partner at A.T. Kearney and a co-author of the report.
“Retailers are looking to big data and data analytics to help them better understand the customer and meet their needs However, retailers are facing some challenges. The cost of complex analytics programmes, issues over data quality and the capability gaps in internal teams are some of the challenges that need to be addressed,” says Subhendu.
The report suggests that for Indian retailers to realize the full potential of big data they need to ensure they are capturing all streams of data accurately. This includes customer shopping history across all channels, in-store behavior as well as the Point of Sale data. They also need a customized big data analytics platform, based on their individual need, complexity and budget. Finally, they need to use the data analytics to executive customized marketing, promotions and assortment of goods to ensure they are meeting the needs of their customers.
The report also lists other key trends that retailers are looking at as they plan their future growth.
Point of Sale (PoS) data: Retailers surveyed by A.T Kearney, as part of the report, said that better collection of data, coupled with use of technology such as beacons, could help them make personalized recommendations to every single customer that enters their store within the next two to three years. However, they highlighted that data collection on PoS systems needed to be automated more. Effective collection, analysis and usage of PoS data will ensure retailers are monitoring all store activity in real time, enabling the firm to use the data to deliver a better customer experience.
Digitally enabled sales force: Majority of the retailers highlighted that their sales staff also needs to be digitally savvy for them to be able to better serve the modern-day customers. Customers’ expectations from in-store shopping is evolving and they now expect to being able to look up product information, offer feedback and receive personalized recommendations based on past behavior. More than 80 percent of Indian retailers believe that real time access to product information and inventory across stores are necessary capabilities. Therefore, equipping retail salesforces with the right digital tools will enable future growth.
Improved Collaboration: Retailers also highlighted that there was a need for more collaboration between them and their suppliers. According to the survey, more than 65 percent of retailers said greater collaboration with their suppliers would help forecast demand more accurately and assist to lower their inventory levels and improve utilization of shelf space. However, only 30 percent of retailers currently collaborate with their suppliers, with 65 percent saying lack of technology platforms and intent from suppliers is hurting collaboration. fii-news.com
