This document discusses planning analytics and business intelligence for an internet retail store. It outlines key challenges retailers face like identifying best customers and matching inventory to demand. The agenda covers the difference between business intelligence and analytics, retail key performance indicators, and how strategic management and operations teams can use insights. Top influencers in retail chains are also examined.

1. Analytics & MIS Planning for
Your Internet Retail Store
N 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. Agenda • Business Intelligence v/s Analytics
• Business Challenges faced by Retailers
• Who should be the consumers?
• Being strategic v/s tactical
• Retail KPIs

3. Analytics as the tool and BI
as the output.
BI is the enterprise strategy
and analytics is the tactic
that enables the strategy.

4. Retail Analytics – Top challenges rated by Retailers
Top challenges by Performance Level Opportunities from BI to overcome Business challenges
Can't 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 don't know what customer 24%
sentiment is until we can see it 68%
in sales 58% Better "what if" modeling
54% 41% 4%
capabilities
Merchants don't 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. 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 2011
Source: RSR Research

6. Top Influencers in Retail Chain
Strategic Management Team Operations Team
Organization

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. 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. 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. 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. 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. Retail KPIs – Sales
By Customers and
Customer Groups
By Items and Item
Groups
By Stores

13. Retail KPIs – Marketing
Promotions and
their effectiveness
Affinity Analysis
Side by Side
comparisons

14. Retail KPIs – Warehousing and Inventory Management
ABC Analysis
Shrinkage (read
pilferage) Analysis
Non Moving Items

15. Retail KPIs – Finance
YTD Sales
YTD Gross Profit
ROTA

16. Lets see these dashboards in action…

17. Thank You
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