Market Trends of Retail Analytics Industry
In-store Operation Hold Major Share
- In-store-operation-based analytics has become an indispensable part of a brick-and-mortar retailer's operating strategy. With benefits ranging from offering the right product to the right customer, further insight on loyal customers leads to the development of strategies to increase customer stickiness.
- When retailers deliver customized experiences to their consumers using several technology such as evaluating customer preferences, recognizing customer location in-store, targeted promotions, and purchase habits, they accomplish digital transformation in shops. The shop monitoring technology analyzes these trends to offer valuable insights that assist merchants in increasing revenue, sales, and footfalls.
- For instance, in June 2022, Amazon launched its new Store Analytics service. The e-commerce behemoth is now attempting to profit on its physical storefronts by providing marketers with data on what customers buy.
- According to NewGenApps, merchants who choose to fully utilize the potential of big data analytics may improve their operating profits by 60%. Furthermore, the omnichannel retailer may monitor in-store buyer behaviour and deliver timely deals to customers to incentivize in-store purchases or later online sales, therefore keeping the transaction within the retailer's fold.
- Quantzig, a data analytics and advisory firm, increased its in-store sales through micro-targeting and the profits by 12% for a fashion retailer based out of Germany. The retailer faced challenges focused on delivering insights to the right resource at the right time, lack of clearly articulated analytics strategy, and poor data quality.
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Europe to Hold Significant Share
- The European segment is strong, owing to the presence of large players like IBM Corporation and SAP SE, which are the leading providers of predictive analytics and advanced retail analytics software. Moreover, more than six million companies are active in this region and employ more than 33 million people. Europe is home to many of the large-scale retailers in the world, such as Tesco, Carrefour, Lidl, Metro AG, and Aldi.
- One of the most popular online hobbies is internet shopping. It offers a large range of items to customers and a plethora of sales difficulties to e-commerce firms. Furthermore, the growing use of cloud services in the retail business will provide possibilities in the European retail analytics market in the near future.
- For example, in October 2022, Avery Dennison announced a collaboration with SAP to address waste concerns in the retail industry by connecting their individual analytic product cloud, enabling supermarkets to monitor and optimize the expiry dates of their items. The firms have agreed to incorporate SAP Analytics Cloud into Avery Dennison's atma.io connected product cloud through an OEM arrangement. According to reports, the data is provided to the SAP Analytics tool via atma.io, as well as items labeled using Avery Dennison's digital identifying technology, such as radio frequency identification (RFID).
- The use of sophisticated analytics to make internet shopping smarter and the combining of physical and online data can assist merchants in customizing their targeting, leading to incremental improvements in e-commerce sales and contributing to the expansion of the market's European sector.
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