Consumer Insights through Retail Analytics

Abstract

In today’s dynamic world of the Fourth Industrial Revolution, analytics-backed business orientation has taken centre stage in retail sector. In the hypercompetitive market, retail companies are increasingly using statistical models, drawn from the insights of retail analytics, to figure out points-of-sale, store layouts and cross-selling. The chief executive officer (CEO) of a renowned retail group of India, Rakesh Biyani, advocated that “Retail analytics are very important to ensure – right product, at the right time in the right store”. The purpose of this chapter is to have an in depth understanding on how Indian retail companies such as ‘Shoppers Stop’ and ‘Future Group’ are exclusively using customers’ purchase and other transaction data to predict their future purchase behaviour and design product placement strategies. The chapter discusses the best practices adopted by Indian retail companies for customer insights and develop customer satisfaction and retention strategies. The best practices discussed in the chapter provide avenues to the retail companies for data driven strategies. There is also preliminary discussion providing consumer insights into how retail companies are exclusively using retail analytics to offer timely, customized and relevant offers to the customers.