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Analytics & MIS Planning for Your Internet Retail Store By Manish Chaturvedi


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Analytics & MIS Planning for Your Internet Retail Store By Manish Chaturvedi

  1. 1. Analytics & MIS Planning for Your Internet Retail StoreN e w Yo r k | M e x i c o | L o n d o n | N a i r o b i | S y d n e y | N e w D e l h i | P a n a m a | S i n g a p o r e
  2. 2. Agenda • Business Intelligence v/s Analytics • Business Challenges faced by Retailers • Who should be the consumers? • Being strategic v/s tactical • Retail KPIs
  3. 3. Analytics as the tool and BIas the output.BI is the enterprise strategyand analytics is the tacticthat enables the strategy.
  4. 4. Retail Analytics – Top challenges rated by Retailers Top challenges by Performance Level Opportunities from BI to overcome Business challenges Cant identify our best 33% Improved promotion customers to offer special 74% 24% 2% 26% effectiveness incentives to them while they are shopping 58% Rapid response to charges 10% 73% 27% 0% in consumer demand We struggle to match 47% inventory to demand 50% Higher customer retention 63% 30% 7%We dont know what customer 24%sentiment is until we can see it 68% in sales 58% Better "what if" modeling 54% 41% 4% capabilities Merchants dont get 57% information fast enough to 47% react to differences between Reduced Shrink 42% 36% 22% forecast vs actual sales 33% Retail Winners Average Performers Laggards Very Valuable Somewhat Valuable Not Very Valuable
  5. 5. Importance of BI in Modern Retail 47% of mega-retailers have 22% of higher end 36% of lower end of mid- had a BI strategy in place for longer than 2 years Vs of mid-market retail Vs market retail 58% of Winners say all channels can take Channels that can derive benefits from BI Y-o-Y equal benefit from BI investments 58% All channels can take equal benefit 19% 43% of mid-market retailers report that they dump data into Excel as their Brick and Mortar stores 27% 55% primary method for BI insights 17% eCommerce Across the board, Winners provide more 14% insights access to their stakeholders than Mobile/mCommerce 1% their peers do 10% 0% Catalog/call centers 2% 2012 2011Source: RSR Research
  6. 6. Top Influencers in Retail ChainStrategic Management Team Operations Team Organization
  7. 7. Business Insight for CXOs • Insights to fine tune the strategy • Insights to influence tactical decisions • Comparative Sales • Sales Performance • Trends • Figures • Contribution (by product group, product, customer group) Dashboard for Business Insights Gauge Charts − YTD , MTD, WTD ,daywise comparison of Net Sales, Charts − Open Balance snapshot, Sales Trend, New Customers, Sales Contribution Comparative Store Sales Store wise Funnel chart Store Sales Performance
  8. 8. Strategic Insight Store Sales Performance • Trends • Figures • Statistics • Top Performers • Bottom Performers Scatter Charts • Evaluation of Individual Store performance • Sales by transactions • Store/Product/ Customer/ Salesperson- − Top Performer − Bottom performer
  9. 9. Tactical Insight Affinity Analysis • What sells more with what • Strategic Insight to determine promotions and combos Product Affinity • Frequency trend • Support %age • Confidence %age
  10. 10. Tactical Insight Side by Side Analysis • Compare sales figures and trends of multiple products in the same group • Comparison across stores Promotions • Which worked and which didn’t • Net Sales v/s Promotional Sales
  11. 11. Tactical Insight Inventory Insight • Product drill down to warehouse inventory • Available Stock • When to Reorder • Stock Shrinkage Benefits • No more Stock out situations • Visibility of Best selling / worst selling product • Loss due to excess stock • Shrinkage Analysis – insight into possible pilferages
  12. 12. Retail KPIs – Sales By Customers and Customer Groups By Items and Item Groups By Stores
  13. 13. Retail KPIs – Marketing Promotions and their effectiveness Affinity Analysis Side by Side comparisons
  14. 14. Retail KPIs – Warehousing and Inventory Management ABC Analysis Shrinkage (read pilferage) Analysis Non Moving Items
  15. 15. Retail KPIs – Finance YTD Sales YTD Gross Profit ROTA
  16. 16. Lets see these dashboards in action…
  17. 17. Thank YouFor more