Predictive Analytics for
Retail
Obtain actionable insights from data, to obtain a competitive edge.
Effective use of analytics can significantly improve performance across the whole value chain including, allocation, promotions, campaigns, assortment, vendor compliance, replenishment, hiring, employee development, store planning and shrinkage.
SPSS Statistics can help retailers better understand their customers, make the right offers to consumers and deliver those offers through the right channels.
Predictive Analytics for Retail
Predictive analytics for retailers can provide critical data-driven insight. Data is vital because what customers say they want and value can differ from behaviours.
In retail, analytics and predictive modelling can significantly improve performance across the entire value chain, including allocation, promotions, campaigns, assortment, replenishment, hiring, employee development, store planning and shrinkage.
Predictive analytics can assist with improving marketing and customer engagement, assortment plans, pricing, promotions, stock control and fraud.
Primary Analytics Solutions for Retail
Design the analytical solution that is best for your business.
Marketing & Customer Engagement
Utilise the power of analytics to increase Average Customer Lifetime Value:
- Combine Social Media and Enterprise data, to present the right offers to your customers, in the right channel, at the right time for them
- Increase customer satisfaction by anticipating issues, resolving them more effectively and building lasting relationships with valued customers
Assortment Plans
As an industry, Assortment Plan Optimisation continues to be far too much of an art, rather than a science. The huge volume of lost sales and profit that this results in, flies under the radar, but high profile failures, like Walmart’s Project Impact provide a powerful reminder of the difficulty of getting it right and the high costs of getting it wrong:
- Across a large and complex range of internal and external data, predict how Assortment Plans will perform, to move beyond linear plans and select the optimum plans at Macro, Cluster and Store level.
- Don’t just achieve optimum depth and diversity, but identify hidden combinations and avoid product cannibalization.
Pricing, Promotions & Markdown
Even today, many top brands continue to rely on intuition when pricing and planning promotions and markdowns. Those who are prepared to explore an analytics-driven approach and compare results are often surprised at not just how consistently analytics out-competes intuition, but by how much.
- Take into account elasticity, competitor pricing, customer expectation, weather, supply lead time, etc, to make optimum short-term pricing decisions, as well as long-term pricing strategy.
- Ensure these choices are effective and consistent across all channels.
Stock Control
Getting the right stock to the right location only continues to become more challenging. Today, it’s not just a problem of having the right number of a product available in the high street and taking into account campaigns, promotions and markdowns, but the ability to fulfil orders online and mobile.
- Minimise costs, increase customer satisfaction and outsell the competition by moving away from ‘min-max’ models to predictive models, sophisticated enough to take into account the reliability of suppliers.
- Manage stock effectively across channels, taking into account when customers research in multiple channels in parallel, where the sale will finally occur.
Recruit, Train & Grow
As the store evolves, so too does the role of the Store Partner. They continue through to be front and centre in representing your brand and maximising top and bottom-line growth. To that end, choosing, developing and having a lasting relationship with them has never been more important:
- Identify the Store Partners who are the optimum match to your brand values and culture, to start lasting relationships, beneficial to both parties.
- Identify rising stars, the support they need and the most effective stage for that, to grow your management team of the future.
Cut Fraud
Whether internal or external, finding fraud in the Retail environment can feel like the proverbial ‘needle in the haystack’. At the same time, the ‘arms race’ against fraudsters continues, with organised crime continuing to be a major issue:
- Go beyond historical techniques focused on the POS, to look at the fullest range of fraud including vendor collaboration, employee fraud, returns fraud, bar code forgery, gift card fraud, etc…
- Predict fraud effectively in all environments from the warehouse to the aisle and online.
- Prioritise prevention and investigation efforts effectively, to maximise the impact of the scarce resources for following up on fraud.
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Version 1’s SPSS experts can consult and deliver a wide variety of analytics solutions across a broad range of industry sectors. Find out more at the links below.
