Data management and analytics ROI are currently the two primary challenges that brick-and-mortar retail businesses are encountering. The modern retail stores are more inclined than ever before in delivering customers with omni-channel shopping experience, which means increase in the numbers of digital channels and exponential rise in data generation. While, on one hand, this sudden increase in data production requires in-house data management system to channelize the raw data pool for customer benefitting and store personalization, on the other hand, it is also important to set the right course of action that will guarantee return on investment and effort.
Despite coming up with dedicated analytics system, many retail businesses fail to receive the expected return. What goes wrong? Which aspects businesses should consider while developing an analytics system that in turn would guarantee ROI?
1) Ensure Communicative Freedom and Partnership Between Analytics System and Business Segments
Decision-making, based on analytics, is a game changer but it is important for developers to ensure that there is scope for seamless communication between the system and different units of the business. Creating the right channel between these two departments helps with collective decision making, which is one of the most effective means for harnessing the true potential of analytics. The more obstacle free the channel of communication between analytics system and business units will be, stronger will be the partnership. This will provide a strong foundation to collective decision making, empowered with logical and dedicated support from analytics.
2) Ensure the Balanced Alignment between KPIs and Analytics Scorecards
The organizational analytics will come up with scorecards but it is important to determine how far the projected targets are in accordance with broader organizational KPIs. Developers need to integrate a virtual profit and loss plug-in with the analytics system, so that the scorecard-analytics alignment becomes more complementary and error free.
3) Confirm Putting Analytics to Operation
Despite having dedicated analytics system, many businesses use it as an ad hoc support for addressing critical situations in business. Well, it is high time that retail houses look beyond this common practice and integrate analytics with every day decision making process. The most successful retail businesses of our time are putting analytics to operations and perfecting real-time decisions, resulting in improved customer satisfaction.
4) Let Your Vendor Section and Partnership Decisions Be Based on Analytics
Organizational analytics can play an extremely important part in evaluating internal capabilities of a business. Prepare a report based on vendor performance and partnership decisions. The findings will help decision makers resetting their priorities and will instigate them in selecting better vendors, decide over engagement duration and receive a more transparent look at the nature of Request for Proposal (SFP).
5) Integrate Top down and Bottom up
Retail decision makers should not be hesitating to balance between both top down and bottom up analytics. In this way, the existing approach to stakeholder engagement finds a better and more transparent view. Consequently, it will be easier for planners to take the necessary steps in changing the mode of engagement, as per the demand of the situation.
6) Agility and Responsiveness of Organizational Structure Should be taken into Consideration
It is important to be ready with your organizational structure as responsive and agile. You are operating in an environment where customers are fond of real-time notification and competitors are ready to challenge you with ever evolving business models. Having a responsive and agile organizational structure makes it easier to adapt to the changes that the analytics will project and promote the same within the organization.