adoption of analytics in retail
DESCRIPTION
Targeted audience: Senior management of the company Topic: Why a company should adopt analytics Industry: RetailTRANSCRIPT
![Page 1: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/1.jpg)
ADOPTING ANALYTICS FOR DECISION MAKING IN
RETAIL
![Page 2: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/2.jpg)
AGENDA
Analytics: A business reality now
Why do we need Analytics?
Implementation Plan
Expected benefits
Taking the next step…
![Page 3: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/3.jpg)
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.
![Page 4: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/4.jpg)
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
![Page 5: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/5.jpg)
Analytics: A business reality now
Why do we need Analytics?
Implementation Plan
Expected benefits
Taking the next step…
![Page 6: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/6.jpg)
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
![Page 7: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/7.jpg)
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.
![Page 8: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/8.jpg)
Analytics: A business reality now
Why do we need Analytics?
Implementation Plan
Expected benefits
Taking the next step…
![Page 9: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/9.jpg)
Implementation Plan
HR Analytics
Fraud Analytics
Supply Chain Analytics
Marketing Analytics
![Page 10: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/10.jpg)
HR Analytics
HR Analytics
Creating value in human capital
Raise Visibility
Align HR data with business data
Predict the future
![Page 11: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/11.jpg)
FraudAnalytics
Cultural Assessment
Understanding activity Patterns
Continuous monitoring & innovation
![Page 12: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/12.jpg)
Supply Chain
Analytics
Inventory Management
Sales Forecasting
![Page 13: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/13.jpg)
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
![Page 14: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/14.jpg)
Infrastructure Requirements
Developing a CoEDedicated captive center for analyticsBuilding expertise in analyticsCreating awareness
IT requirementsAnalytical tools and softwareEDW
![Page 15: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/15.jpg)
Analytics: A business reality now
Why do we need Analytics?
Implementation and Execution plan
Expected benefits
Taking the next step…
![Page 16: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/16.jpg)
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%
![Page 17: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/17.jpg)
Taking the next step…
Need your support, commitment and desire to implement
Need to appoint a Analytics head
Spread the awareness among the employees
![Page 18: Adoption of analytics in retail](https://reader036.vdocuments.net/reader036/viewer/2022081907/547e44205806b5b35e8b46a6/html5/thumbnails/18.jpg)
Thank You