Data is everywhere in retail, from customer transactions to social media posts, website traffic, and more. But with so much data at their disposal, many retailers struggle to make sense of it all and use it to make better decisions. This is where data analytics comes in. By analysing large amounts of data, retailers can uncover insights and trends that would otherwise be hidden. One retailer that's doing just that is UAE based FairRe Supermarkets LLC . Let's see how they're using data analytics to improve their business.
The company's inventory management system was outdated and inefficient, leading to stock-outs and lost sales. Their logistics operations were also not optimized, resulting in long lead times and high shipping costs. The company knew that something had to change, so they decided to invest in a new data analytics platform. This platform would give them real-time visibility into their operations and help them identify opportunities for improvement.
Last summer, FairRe came across and incident which was related to a popular item that was out of stock, causing a customer to complain on social media. This created a lot of negative publicity for the company. But with the new data analytics platform, they were able to identify this issue and take steps to prevent it from happening again.
It's estimated that companies that effectively use data analytics can improve their revenue by as much as 10% to 15%. Additionally, it's estimated that data-driven companies are 23 times more likely to acquire customers, six times more likely to retain customers, and 19 times more likely to be profitable.
Also, researchers found that the use of data analytics can reduce inventory costs by 8% to 12%, and improve pricing optimization by up to 2% to 5%. Additionally, it's estimated that data analytics can reduce out-of-stock rates by up to 50%.
In summary, the use of retail data analytics can bring significant benefits to companies, including improved revenue, reduced costs, better customer satisfaction, and more. Companies that want to remain competitive in the retail industry must embrace data analytics and use it to make informed decisions.