Importance of adopting Retail Analytics

2.  Analytics: A business reality now
 Why do we need Analytics?
 Implementation Plan
 Expected benefits
 Taking the next step…

3. 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.

4. 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 $100m
 German retail giant Otto Group used predictive
analytics to save $20m

5.  Analytics: A business reality now
 Why do we need Analytics?
 Implementation Plan
 Expected benefits
 Taking the next step…

6. 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

7. 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.

8.  Analytics: A business reality now
 Why do we need Analytics?
 Implementation Plan
 Expected benefits
 Taking the next step…

9. Implementation Plan
 HR Analytics
 Fraud Analytics
 Supply Chain Analytics
 Marketing Analytics

10. Implementation Plan
HR
Analytics
Raise Visibility
Align HR data with business data
Predict the future

11. Implementation Plan
Fraud
Analytics
Cultural Assessment
Understanding activity Patterns
Continuous monitoring & innovation

12. Implementation Plan
Supply
Chain
Analytics
Inventory Management
Sales Forecasting

13. Implementation Plan
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

14. Infrastructure Requirements
 Developing a CoE
 Dedicated captive center for analytics
 Building expertise in analytics
 Creating awareness
 IT requirements
 Analytical tools and software
 EDW

15.  Analytics: A business reality now
 Why do we need Analytics?
 Implementation and Execution plan
 Expected benefits
 Taking the next step…

16. Expected Benefits
• Our YOY revenue growth will be 15%
Current Vs Expected EBIDTA
• Projected increase in the operational efficiency is 26%
• We would be able to reduce our retail shrinkage to 1%
• We would be able to reduce our attrition level by 10%

17. Taking the next step…
 Need your support, commitment and desire to
implement.
 Start building the team
 Spread the awareness among the employees

18. Questions