Staying ahead of the competition in today's dynamic retail landscape is crucial, and in an age where data is the king, leveraging every bit of data is the key. But where to start? For the grocery retail industry, the answer lies in collecting and analyzing in-store data to drive informed decision-making, which results in enhanced on-shelf availability, optimized distribution and inventory management, and ultimately higher sales.
According to a survey by HBR, nearly 80% of respondents in the grocery retail industry have implemented a centralized data model, are in the process of doing so, or have plans to implement one in the future.
With the right data and analysis, retailers can make informed decisions on everything from product placement and promotions to supply chain efficiency and customer behavior. In this blog post, we'll take a closer look at how data-driven decision-making can help grocery retailers stay competitive, and provide a shortcut to implementing it in your business. From identifying key performance indicators to utilizing advanced analytics tools, we shall cover all the essential steps for harnessing the power of data in the grocery retail industry. So if you're ready to take your business to the next level, join us as we explore the future of data-driven decision-making.
The Importance of Data in Retail
From understanding consumer preferences to optimizing in-store layouts, data plays a crucial role in the modern retail landscape towards creating a perfect store. As the industry continues to evolve and adapt to new technologies, it's essential for retailers to keep pace and stay ahead of the curve by leveraging the power of data.
Our client, Bel Group, has reached holistic analytics into their operations within a week of implementing Vispera’s technology to get a competitive advantage.
Leveraging Retail data to Analyze Customer Preferences
The first area that retail data helps grocery retailers better understand and adapt to their customer's preferences and shopping behavior is by tracking sales data. The information can provide insights into which products are selling well, enabling retailers and CPGs to adjust their inventory and product placement accordingly.
One great example of how data-driven decision-making can impact the retail industry is seen in the holiday retail sales predictions. The National Retail Federation expected 2022 holiday retail sales to grow between 6% and 8% over 2021, breaking records if that prediction holds once all the numbers are tallied. The outcome can be attributed, in part, to retailers who used data-driven decision-making to understand and adapt to customer behavior, preferences, and shopping habits. By combining sales data with cutting-edge technologies like IR-based retail execution tools, retailers can stay ahead of the game and provide customers with the products they want, when they want them.
With Vispera's image recognition-based retail execution and tracking services, for example, retailers can gather data on the most frequently purchased products and the specific features that customers are interested in, such as packaging preferences, color, size, and more. As collected data keeps its value, the information can then be used to inform product placement and promotional strategies, allowing retailers to offer the products and features that customers are looking for and to make informed decisions about which products to stock, what deals to offer, and how to allocate shelf space. In short, leveraging retail data can help grocery retailers and CPGs better understand and respond to the evolving needs of the customer.
Minimizing Inventory Loss and Damage to Property
Minimizing inventory loss and damage to property is a critical aspect of running a successful retail business, including grocery retail. One effective way to achieve this goal is by implementing data-driven decision-making. By utilizing data to inform decisions about product sourcing, storage methods, and warehouse management, grocery retailers can create a tailored plan to reduce the risk of inventory loss and damage.
Data can provide insights into the effectiveness of current inventory management processes and highlight areas that may require improvement. For example, data on the frequency and causes of damage to stock can inform decisions on how to prevent similar incidents in the future, such as implementing new storage methods or better tracking systems. By continually monitoring and analyzing data, grocery retailers can make proactive, informed decisions that help minimize inventory loss and damage over time.
Keeping Pace with Changes in the Global Grocery Retail Market
By gathering and analyzing data on various aspects of their business, retailers can identify trends and make changes to better meet the needs of their customers. One of the best ways to stay ahead of the game is by utilizing image recognition-based retail execution technologies. When used the right way and the fitting AI combinations, Image recognition can provide real-time insights into store operations, including inventory management, product placement, and customer engagement. Image recognition can help retailers ensure that shelves are stocked correctly, track the popularity of different products, and identify areas of the store where customers spend the most time. In the end, the insights can inform decisions related to product placement, promotions, and other key aspects of the retail experience.
The Challenges of Data Collection and Analysis in Retail
From ensuring data accuracy to adopting new technologies in a timely manner, grocery retailers must navigate these hurdles in order to stay ahead in an ever-evolving market. Let's take a closer look at some of the main challenges faced in the data collection and analysis process in retail.
Data Accuracy and Identifiability
A key challenge in big data projects is ensuring that the data collected is accurate and can be clearly identified. To bypass the problem, partnering with a solution provider that develops its own technology is a good idea, as the same platform would handle the collection and analysis of data.
Integrating Disparate Systems
Retailers often have multiple systems that store data in different formats, making it a challenge to gather and collate data from these different sources. As you might have experienced, integrating multiple systems to obtain a unified dataset can be time-consuming and complex. Thankfully, we see more solutions that handle many processes on the same platform, which creates a shortcut to efficient results.
Swift Insights and Action
Despite the benefits that big data can offer, it can be difficult to draw the right insights promptly and take action in a timely manner. The process of extracting, transforming, and analyzing data can take time, and retailers must be prepared to act quickly to capitalize on emerging trends and patterns. Fortunately, retail execution systems like Vispera work in real-time, letting grocers and CPGs take quick action with accurate data and insights.
Introducing Vispera: The Solution to Your Retail Data Needs
As the developer of a leading image recognition-based retail execution technology, Vispera provides retailers with data-driven insights to stay ahead of the game. With 96% accuracy, Vispera offers retailers the ability to tackle common challenges such as ensuring the accuracy of collected data disparate systems, ensuring data security and compliance, and drawing the right insights promptly.
Thanks to its advanced AI, backed with image recognition technology, Vispera provides solutions for space planning, category management, and shelf and shopper strategy to help retailers make the most of their data. With Vispera, retailers can streamline their data collection and analysis process, gain a competitive edge, and stay ahead of the curve in the rapidly evolving global grocery retail market. Explore the cutting-edge data-driven retail execution technology on our website, or request a pilot to experience it in real-time.