Analytics-Driven Solutions Transforming the Retail and CPG Industries
Consumer patterns everywhere change quickly. And when it comes to the retail and CPG industries, we cannot practically look ahead 3-5 years anymore. In a digital age where a viral social media review clip can skyrocket the sales of products, it has become critical that businesses take a completely evidence-based approach and stay on top of their games.
By investing in data analytics tools and services, businesses can cater correctly and timely to the changing market and consumer demands. Data visualization tech and algorithms can help generate lean innovation models that streamline everything from manufacturing and supply chain management to sales and marketing.
Let’s read in a little more detail how analytics-driven solutions are transforming retail and CPG industries.
Value-Driven Marketing of Products
With the help of advanced data analytics consulting, retail goods and CGP companies can increase marketing return on investment simply by gaining real-time visibility into consumer behavior and purchasing trends. Tools like social media, brand websites, number of registrations, etc., can be analyzed to determine the effectiveness of your existing strategy. And this, consequently, reveals high-value information to businesses in terms of consumers’ preferences, buying inclinations, and response to marketing strategies in place. An intensive analysis of these KPIs can help augment marketing efforts, which can then boost the ROI.
Optimized Price Recommendations and Profit
In the highly competitive retail and CPG industries, pricing decisions can make or break the business. Every observation regarding what category your audience falls in, what they pay against what they’re willing to pay, how your competitors are positioned, and other related aspects play a crucial role as a revenue driver.
Analytics-driven pricing helps make calculated moves, considering price analytics on how businesses can drive profits at market, brand, and customer-base levels. By setting optimum prices in line with customers’ behavior and market trends, brands can gain a competitive edge. Promotional analytics can further help leverage sales and marketing together to capitalize on growth opportunities.
Streamlined Supply Chain Operations
Data visualization techniques and advanced algorithms allow drawing a clear picture of the supply chain, which can help refine operations. The enormous amounts of data that supply chains produce every day can provide valuable insights on the efficacy of existing SCM strategies. The problem arises when this data remains unstructured.
By analyzing the supply chain data, companies can extract patterns that can help resolve even the most longstanding and stubborn issues. For example, predictive analysis gives insights into inventory, supply, and demand, which can enable effective demand forecasting and capacity planning. Similarly, parameters like stock levels, inventory turnover, past consignments, sales ratios, and others can allow for performance evaluation and SCM strategy optimization. Demand casting, sales planning, and operations planning are also part of supply chain analysis.
Alignment with Consumers
Customers are always speaking to us; we must use the right tech to not just listen but comprehend too. CPG and retail marketers can harness the power of customer data and trends to personalize their campaigns with the goal of increasing product impressions, conversions, and eventually customer stickiness.
By analyzing customer journeys, businesses can identify buying behavior and patterns. For example, the sale of certain products may be higher during holidays or festive seasons. Similarly, performance of discounts and offers can be compared to understand what works best for certain categories. All this and similar data combined can help take a value-driven approach towards revenue optimization and attracting new customers.
Improved Business Agility
Big data analytics are considered to be one of the most impactful organizational resources since they enable evidence-based decision-making. By visualizing data, companies can achieve business agility and withstand changes in the market. This can be especially helpful for businesses where a constant change in the core technology is observed. For example, factors like consumer preferences, market trends, competitor pricing, etc., can have a sizeable impact on the business. But by syncing, let’s say, omnichannel consumer analytics and competitor analytics, retail and CPG brands can eliminate functional siloes and achieve the agility of a start-up.
TechM Data and Analytics as Growth and Profitability Drivers
At Tech Mahindra, we ease our clients’ data journeys through our data and analytics competencies that cover everything from data acquisition, to governance, to analysis. We help establish a clear path of success from data to value through our analytics-driven tech and consulting solutions. Here are some of our analytics-driven solutions:
- Self-service predictive analysis
- Data management platform with multiple core capabilities, including data quality, data migration, and revenue assurance
- Data reconciliation framework to identify revenue leakages
- Pricing, marketing, operational, and customer analytics
- Big data analytics with insights on multi-structured processes, including data ingestion, cluster set-up, data modelling, structured and unstructured analysis
In addition, we also offer business intelligence consulting to help you transform raw data and draw valuable information. Our analytics framework can be used to get near real-time predictive and prescriptive insights, which, in turn, can allow retail and CPG companies to improve NPS and FCR, reduce AHT, leverage cross-sell and upsell opportunities, optimize pricing models and marketing strategies, streamline supply chain, and do much more in terms of business value realization.
