Running retail business of any kind might be extremely tricky process full of unknown variables. Full scale analytics service provider is able to offer you a lot. But in depth analytics projects demand lot of recourses, hence money. Big retail businesses already benefit from analytics services because of their large scaling and that’s how they improve their profitability even more. This is raising following question:
Are small retailers able to benefit from data analytics?
The short answer is YES. The bigger question is HOW. a4RetailStores is simple data analytics application, available for FREE in our website and its paid versions deliver a lot more.
Let’s presume every retailer has historical data of his sales. If he is able to extract them in simple .csv file with 3 columns (product ID/name, date of sale, sold quantities), the retailer is an owner of really nice data string containing a lot of useful information like this:
Sales trends
You`ll be able to know how many of your products are positively or negatively trending. Also, you`ll know how much of your turnover is made by trending or declining products. Such an information indicates clearly where to focus your sales efforts and which of your products offerings should be considered for discount or for entire removing.
Sales forecast
Having strong data set with past sales makes forecasting future sales easy. Complex mathematical algorithms are able to calculate with accuracy higher than 95% potential future sales. If a retailer knows with high probability what and when he is going to sell tomorrow or next week or even month, he will be able to plan his business much better and to raise his profitability.
Retail sales forecast benefits
- Time saver – how much products you can track by yourself? Hundreds or may be even thousand if you are really good at this. If your shop has much more items, you`ll need some proper aid.
- Cash flow optimization – by knowing what and how many you are going to sell you`ll be able not to lock money in stock.
- Minimization of missed & lost sales – it is hard to achieve sales if you are out of stock.
- Inventory spending optimization – clever ordering is space saver.
- Satisfied customers – clients are not happy if they didn’t get what they look for because you are out of stock. As simple as that.
All of this is achievable with a4RetailStores data analytics app, made to be extremely simple to use. But what if you are able to cross your sales data with weather? We all know sudden weather change affect retail sales. This will make you prepared for impactful foot traffic change at your location. Paid versions of a4RetailStores are able to deliver.
What if in your simple 3 columns .csv file you add one more – the actual salesman? Then you`ll be able to know who is performing best and worst. Cross this information with the data of actual working hours per salesman and you`ll get his effectivity, measured in proper figures. Such an insight is giving you information about additional education needs or who to bonus.
If you are interested in retail data analytics, try out for free A4Everyone` a4RetailStores application or contact us if you have any questions.
