Today, we live in the information age and Business Intelligence is one of the most important analysis tools in the corporate world as it allows you to turn data into strategic actions to improve business.
Business Intelligence, applied to the Retail Sector, can make retailers more competitive and profitable by allowing them to use the information obtained from daily operations to search for hypotheses and predictive patterns aimed at optimizing business performance in the short, medium and long term.
Here are some examples of what you can do with this tool:
Inventory management.
You can forecast market behavior (supply and demand) to avoid overstock, while maintaining adequate product availability in the displays. Thus, it should be taken into account that stock-outs seriously affect customer experience and sales, costing almost double their amount, estimated between 7% and 10% in highly competitive chain stores.
In addition, the analysis will help you define which products should or should not be kept on display and in catalogs, depending on their rotation and seasonal demand.
Better human resources management
The tool can provide you with reliable predictions of customer flow, essential information to efficiently manage your payroll and meet the store's operational needs.
Financial control
With Business Intelligence you have the option of optimizing the management of both investments and expenses because, by focusing on the data, your forecasts will have a much smaller deviation and financial planning will be more accurate.
Increased sales and price optimization
Used correctly, a Business Intelligence tool helps you to better understand your customers' needs in order to offer a better shopping experience. In addition, it is useful to determine the products to sell and sales opportunities in the medium and long term, in favor of market trends and consumer behavior.
Therefore, all this leads to increased sales.
Likewise, product prices can be increased in real time to match current supply and demand, as well as future trends.
Marketing management
Based on historical data and information about customer behavior and experience, you can determine which promotions and marketing actions are most effective, both in-store and in external and online channels.
By implementing a Business Intelligence system, you have the possibility to manage all the information derived from the operations and in case you have more than one store, in a segmented way. However, with this last advantage, you can orient strategic decision making to the specific requirements and conditions of each point of sale.
For all these reasons, more and more companies -not only in the retail sector- are implementing this tool. According to the results of a Gartner Group study (2016), the global industry spends around 14 billion dollars a year on BI software.
Business Intelligence, applied to the Retail Sector, can make retailers more competitive and profitable by allowing them to use the information obtained from daily operations to search for hypotheses and predictive patterns aimed at optimizing business performance in the short, medium and long term.
Here are some examples of what you can do with this tool:
Inventory management.
You can forecast market behavior (supply and demand) to avoid overstock, while maintaining adequate product availability in the displays. Thus, it should be taken into account that stock-outs seriously affect customer experience and sales, costing almost double their amount, estimated between 7% and 10% in highly competitive chain stores.
In addition, the analysis will help you define which products should or should not be kept on display and in catalogs, depending on their rotation and seasonal demand.
Better human resources management
The tool can provide you with reliable predictions of customer flow, essential information to efficiently manage your payroll and meet the store's operational needs.
Financial control
With Business Intelligence you have the option of optimizing the management of both investments and expenses because, by focusing on the data, your forecasts will have a much smaller deviation and financial planning will be more accurate.
Increased sales and price optimization
Used correctly, a Business Intelligence tool helps you to better understand your customers' needs in order to offer a better shopping experience. In addition, it is useful to determine the products to sell and sales opportunities in the medium and long term, in favor of market trends and consumer behavior.
Therefore, all this leads to increased sales.
Likewise, product prices can be increased in real time to match current supply and demand, as well as future trends.
Marketing management
Based on historical data and information about customer behavior and experience, you can determine which promotions and marketing actions are most effective, both in-store and in external and online channels.
By implementing a Business Intelligence system, you have the possibility to manage all the information derived from the operations and in case you have more than one store, in a segmented way. However, with this last advantage, you can orient strategic decision making to the specific requirements and conditions of each point of sale.
For all these reasons, more and more companies -not only in the retail sector- are implementing this tool. According to the results of a Gartner Group study (2016), the global industry spends around 14 billion dollars a year on BI software.