Following the US and UK lead, Australian retailers and FMCG companies now realise the importance of harvesting value hidden in their data. (e.g. BRW article)
For example, in the supermarket industry, increased competition from Costco and Aldi is challenging Woolworths’ and Coles’ market share. This requires better focus on business processes and drivers, especially for smaller retailers caught in the cross-fire.
Current challenges include:
- Insufficient insight into what drives their business results: Sales volumes, Market Share, Customer basket size / Transaction value
- Price and Promotion Optimization – insufficient insight into everyday pricing, and promotion pricing
- Limited shelf space – no clarity on how to allocate the stock to maximise sales
- Range Planning and Stock Optimization
- Media advertisements are expensive and ROI is difficult to estimate
- Insufficient Customer Insight despite access to customer transaction data
Leading retail organisations use Advanced Analytics to:
- get clear insight into what drives organisation’s business results
- optimise pricing, promotion pricing and media ROI
- maximize store space profitably by shelf space and planogram analysis
- optimise Range Planning by use of advanced store clustering techniques
- understand customer needs and behaviour in order to maximise sales by harvesting value from customer transactions data and loyalty programs data
Organisations without these insights will be left behind.