Retail businesses once revolved around the supply-and-demand principle. But as the ecommerce industry expanded and online shopping came into the picture, the scenario changed drastically – customers now had more options to choose from. For retail businesses to survive, it became important to give the customers an incentive, something extra to attract them to your business. But the real question was, and still is – how do you find out what attracts them?
In online shopping stores, it is easy to track customers’ browsing history, purchases, etc. to gain insights about their preferences. But in brick-and-mortar stores, the data collected is more diverse and complex. Making inferences from this data and understanding trends is a challenge in itself. This is where data visualization comes into play. It is a powerful technique for interpreting data in the most comprehensive yet effortless way possible.
Understanding Data Visualization
Data visualization refers to the presentation of abstract information in a pictorial or graphical form that is concise and easy to comprehend. By making use of pie charts, graphs, histograms etc., it simplifies the interpretation of retail analytics, such as data collected from person-to-person interactions. As a result, it enables quick decision making – something that can go a long way in boosting sales.
Boosting Business with Data Visualization
Data visualization is opening new doors and providing novel solutions to old problems. It can indeed have a great impact on sales for retail businesses. Read on to explore four benefits it offers to retailers that can multiply revenue.
- Faster Information Comprehension
It is a well-known fact that humans respond better to visual stimuli. Hence, by making use of data visualization, information can be better comprehended. Businesses no longer have to wrestle with complicated spreadsheets and lengthy reports, since all the data is made available in a format that is pictorial and hence very direct. This enables retailers to detect problems and failing policies in a timely manner. In this way, data visualization potentially helps retail businesses avoid incurring losses – a penny saved is a penny earned, after all.
- Discover Emerging Trends
Retailers struggle with discovering new opportunities that may have the capability to enhance revenue. Whether it is identifying bestsellers or determining the cause of customer churn – data visualization helps to detect both. It enables retail businesses to pinpoint emerging trends from the accumulated goldmine of data in a single glance. It also helps in exploring the impact of omnichannel marketing, ultimately helping to understand customer behavior. This gives retailers an edge over competitors within the industry.
- Enhance Customer Experience
In order to deliver the best customer experience, retailers need to know what their customers want, when they want it, and through which channel. Data visualization lets you extract these details from the sea of data collected and obtain an easy to understand report of the same – all this without the requirement of any IT skills. Enhancing customer experience is crucial because happy customers are important for a positive brand image. All this collectively helps in attracting more buyers, hence boosting retail sales.
- Make Better Production and Distribution Plans
Data visualization can help in improving supply chains by determining what product sells better on which channel, and by forecasting product demands. This eliminates the possibility of both overstocking as well as stock shortage. Additionally, it also aids in determining whether a product will sell better online or in-store, and consequently, the optimal size of the warehouse can be chosen. Clearly, better planning can contribute to savings as well as generating fresh revenue. At times, in order to optimize distribution, retailers want customers to prefer a particular channel above others. Once again, data visualization proves to be a useful way of figuring out the method for achieving this as well.
Retail organizations operate in highly competitive markets. In the search for novel ways to drive sales, retailers look up to customer data. But this data is large and unsegmented. Data visualization converts this unsegmented data into something meaningful and makes retail analytics easy to comprehend. An agile approach towards business, persistence and a critical mindset are the only extra skills needed to keep moving forward. Leave the rest to data visualization!
Ashwin Patil is a passionate content marketer who writes on technology, tech trends, tech reviews. Also, I work with people, organizations and the community to deliver solutions which are driven by Big Data, Internet of Things, Machine Learning, Deep Learning & Artificial Intelligence.