By Amber Hovious, VP Marketing and Partnerships at Teamwork Commerce
For any retail business to succeed, retailers and their staff must be able to make effective decisions at all times. Whether it's making the right choices when stocking inventory or empowering associates to recommend a relevant alternative to a customer, retailers must lean on real-time inventory visibility and customer data to significantly enhance decision-making.
During busy shopping periods, inventory levels can vastly fluctuate due to demand. According to a Statista survey, one-fifth of in-store shoppers worldwide said they had frequently been unable to buy a particular item due to it being out of stock, and another survey found that more than half of global e-shoppers reported being unable to purchase products for the same reason. Stockouts don't just cost lost sales, they can also negatively impact customer loyalty and brand reputation in the long term. With automated inventory tools that operate in real time, retailers can automate order procurement to avoid running out of stock and optimize costs through busy shopping seasons.
Decision-making for sales growth
Today, retailers need to be aware of the constantly changing nature of the business. Having data to lean on in real time enables retailers to have an extensive level of reporting with all the information they need. With easy access to accurate insights, retailers can analyze and prepare for next steps immediately, which is extremely important in a busy retail environment. Innovative retail solutions that are integrated with each other facilitate a seamless flow of real-time data, providing retailers with valuable insights.
Accurate real-time analytics help retailers make informed decisions on ordering inventory, preventing backlogging, and uncovering excess costs. If an item is selling fast, retailers can quickly identify and reorder it to avoid running out of stock. Retailers can also optimize their stock distribution in real time, keeping high enough inventory levels at busy stores to drive sales, improving consumer loyalty and enhancing sales opportunities by minimizing the risk of out-of-stock situations.
Improving customer service
Personalization is a crucial element of the customer experience, but consumer habits are constantly changing. Something that may have previously been a priority to a customer might not hold the same value anymore. To create tailored interactions that resonate with customers, retailers must leverage up-to-date real-time customer data to keep up with evolving preferences.
Today's advanced customer relationship management tools can provide associates with real-time information at the tap of a button (purchase history, buying frequency, and shopping habits) letting them create meaningful interactions at each touchpoint of the retail journey. In-store associates armed with the right mobile devices can use that same real-time data to answer product-related questions, from helping customers locate desired items to providing relevant alternatives.
Real-time data for optimized operational costs
With up-to-date analytics, retailers can gain visibility into their best-selling and less in-demand products, which can be analyzed further to support business priorities and inform where to cut costs. If data shows a particular item is in high demand, retailers can allocate more budget to ensure it's always available; if an item isn't selling well, retailers can reduce purchases in the supply chain to save costs and avoid overstocking.
Retailers can also optimize the transportation of items based on individual store performance, tracking that data using advanced analytics and reporting tools integrated with their wider technologies, creating a holistic real-time view of the entire retail ecosystem.
The takeaway
Utilizing and benefiting from real-time analytics ultimately gives businesses a competitive edge and provides the ability to grow sustainably. Gaining real-time visibility into both customer shopping habits and wider retail operations allows brands to make informed decisions, resulting in improved customer experience, optimized operational costs, and increased profitability. Retailers must leverage an integrated retail solution that weaves different parts of their retail ecosystem together and facilitates accurate data in real time.