Capturing the reluctantly spent dollars of today’s post-recession consumer requires retailers to be engaging, personal and relevant. Retail Analytics as a result is of paramount importance to help retailers effectively collect, analyze and act on both customer and organization data in near real time, across all the channels they function in.
While retailers the world over view Retail Analytics as an effective tool to increase customer wallet share, gain higher margins, increase complimentary store sales and reduce wasted marketing dollars, many of them still struggle to prioritize their analytical approaches. While some are overwhelmed by the large number of options, others find it difficult to digest all of the data provided by various point-of-sale systems, Web sites and internal transaction processes.
Some of the questions that retailers are answering with more scientific rigor and analytical reasoning are:
- How do I target precisely and customize offerings?
- How do I customize offers to stores?
- How do I justify my marketing spends?
- How do I optimally price throughout the product lifecycle?
- How do I decide on my assortment composition so that I can minimize lost sales
With over 10 years of extensive Retail experience and a client list that accounts for the who’s who of the Retail industry, HCL Technologies has a robust Retail Analytics Practice in place that can customize analytics offerings to retailers, enabling them to do their business profitably like never before. Marketing Mix Modelling, Propensity to Buy Modelling, Pre Pack Optimization, Market basket Ananlysis are just some of the many Analytics solutions that have helped HCL “ provide the right information, at the right time, to the right decision makers, using the right technology” across the retail landscape.
HCL’s Retail Analytics Service Offerings
- Marketing Mix Modeling-: The task of measuring returns on the marketing mix has become more complex as media have proliferated. HCL leverages Marketing mix modeling to unearth the driving forces in the marketing environment for allocation of promotion dollars to more hard working marketing buckets helping retailers become more profitable.
- Propensity to Buy Modelling-: Retailers today understand that identifying customers with the highest propensity to buy new products and services, is imperative for accurate and better customer segmentation. Propensity to buy modeling helps produce a predictive score for each customer or prospect hence allowing retailers to target the most likely prospects of a marketing campaign.
- Test and Learn for Stores and Customers-: HCL’s extensive Retail Analytics capabilities empowers retailers to test a new idea on a sample set of stores or utilize a test laboratory facility for various tests to be carried out.
- Pre Pack Optimization-: This is a tool which takes a system wide perspective in identifying and reducing cost and thereby enhance the supply chain profitability. The objective here is to enhance and standardize processes to determine the optimal number of assortment packs, size ratios, and target stores for distribution. One method which has been evolved is how to create a lost sales model and incorporate into current processes.
- Market Basket Analysis-: With the amount of data at the disposal of retailers, Market Basket Analysis helps utilize this data effectively to uncover underlying patterns in customer transactions. HCL Analytics has the expertise to take the regular Market Basket analysis to the next level by identifying the most profitable baskets, differentiating between the natural rules that are inherent to the stores and patterns induced by promotion, normalize the effect of store attributes like size, footfalls etc to sales and margins and compare stores.
Currently Retail Analytics is researching for a scientific process that will define a general optimised solution to promotion strategy of an entity with the help of Market basket Analysis.