Adoption of analytics in retail | Retail Analytics

ADOPTING ANALYTICS FOR DECISION MAKING IN

RETAIL

AGENDA

Analytics: A business reality now

Why do we need Analytics?

Implementation Plan

Expected benefits

Taking the next step…

Analytics: A business reality now Focus is on fact-based rather than gut based decision making.

Analytics is a strategic weapon for businesses.

Customer analytics are driving big data initiatives. 53% of big data efforts underway by retail companies are focused on achieving customer-centric outcomes

Organizations are being practical about adopting Analytics

74% of retailer say that leadership is totally or highly committed to analytics.

Analytics in Retail Opportunity to achieve competitive advantage from

‘Analytical Retail ‘ is enormous.

Few examples:Kroger gets a 40% redemption rate from its

analytically target coupons compared to industry average of 2%

Tesco uses supply chain analytics to save $100mGerman retail giant Otto Group used predictive

analytics to save $20m



Implementation Plan

Expected benefits


Why do we need Analytics?Pain Points of the Company

The companies YOY revenue growth is not meeting our expectations

Retail shrinkage of the company is 2% of our annual retail sales

The attrition level is 5% above the industry average

Why do we need Analytics? Opportunities to explore

Develop close relationships with customers based on a deep understanding of their behaviors and needs.

Determine the best use of marketing investments.Balance inventory with demand so that we are

never out of stock or carrying excess inventory.Locate stores, distribution centers, and other

facilities in optimal locations.



Implementation Plan

Expected benefits


Implementation Plan

HR Analytics

Fraud Analytics

Supply Chain Analytics

Marketing Analytics

HR Analytics

HR Analytics

Creating value in human capital

Raise Visibility

Align HR data with business data

Predict the future

FraudAnalytics

Cultural Assessment

Understanding activity Patterns

Continuous monitoring & innovation

Supply Chain

Analytics

Inventory Management

Sales Forecasting

Marketing Analytics

Evaluate consumer purchasing behavior, identification of

the combination of the products buying together

Predictive modeling to evaluate price elasticity, margin

target, profit and revenue maximization

CRM analytics(demographic, psychographic & purchase

behavior), cross-selling and up-selling strategies.

Better store layout planning and assortment optimization

Infrastructure Requirements

Developing a CoEDedicated captive center for analyticsBuilding expertise in analyticsCreating awareness

IT requirementsAnalytical tools and softwareEDW



Implementation and Execution plan

Expected benefits


Expected Benefits• Our YOY revenue growth will be 15%

• Projected increase in the operational efficiency is 26%• Footfalls and average bill value will increase by 2% each• Gross Margin to increase by 1% by promoting more private labels

• We would be able to reduce our retail shrinkage to 1%

• We would be able to reduce our attrition level by 10%

• All the above factors will lead to overall profit increase by 10%


Need your support, commitment and desire to implement

Need to appoint a Analytics head

Spread the awareness among the employees

Thank You