The Importance of Real-time Decision-making in a Busy Retail Environment

https://retailvoices.co.uk/2024/09/the-importance-of-real-time-decision-making-in-a-busy-retail-environment

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 it comes to stocking inventory or empowering associates to recommend customers a relevant alternative, 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 that they had frequently not been able to buy a particular item due to that item being out of stock. Similarly, another survey found that more than half of global e-shoppers reported being unable to purchase products due to items being out-of-stock. Not only do stockouts result in lost sales opportunities, but 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 their order procurement to avoid running out of stock and optimise costs through busy shopping seasons.

Decision-Making for Sales Growth

Today, retailers need to be aware of the constant changing of business needs. Having data to lean on at a constant live-time rate enables retailers to have an extensive level of reporting with all necessary information. With easy access to accurate impressions, retailers can analyse and prepare for the next steps imminently – which is extremely important in a busy retail environment. Innovative retail solutions that are integrated with each other can facilitate a seamless flow of real-time data, providing retailers with valuable insights.

Accurate real-time analytics help retailers make informed decisions when it comes to ordering inventory, preventing backlogging and uncovering excess costs for the business. Today’s integrated solutions can analyse real-time data and provide retailers with data-powered recommendations, allowing them to make effective decisions.

The data can represent any potential issues that may arise. For example, if an item is selling fast, retailers can quickly identify and order it to avoid running out of stock. Retailers can also optimise their stock distribution in real-time, facilitating high enough inventory levels at busy stores to drive sales. As a result, they can improve consumer loyalty and enhance sales opportunities by minimising the risk of out-of-stock situations. Ultimately, this can lead to significant growth and profitability for retailers.

Improving Customer Service

Personalisation is a crucial element of the customer experience. However, consumer habits are constantly changing. Something that may have previously been a customer’s priority – whether this is a specific product or even a certain order fulfilment preference – might not hold the same value to them anymore. To be able to create tailored interactions that resonate with customers, retailers must leverage up-to-date real-time customer data to keep up with their evolving preferences.

Today’s advanced customer relationship management (CRM) tools are capable of providing associates with real-time information at the tap of a button. Retailers can use real-time data such as customer purchase history, buying frequency, and shopping habits provided by their CRM tools to better understand their customers. This allows them to create meaningful interactions at each touchpoint of the retail journey, ultimately improving their shopping experience and satisfaction.

Retailers can also use real-time data to anticipate trends and opportunities, and be better prepared to meet consumer needs. This allows retailers to maximise efficiency when delivering high-quality customer service – driving sales and enabling them to remain ahead of the competition.

Additionally, in-store associates, armed with the right mobile devices, can use real-time data, available at a tap of a button, to answer product-related questions. From helping customers locate their desired items if available, to providing them with relevant alternatives, real-time data plays a key role in enabling staff to deliver high-quality customer experiences.

Real-Time Data for Optimised Operational Costs

With up-to-date analytics, retailers can gain visibility of their best-selling and less in-demand products, which can then be analysed further to support business priorities and make informed decisions on where to cut costs.

Leveraging real-time data, brands can access and monitor their KPIs. Effective forecasting with real-time data allows retailers to optimise their costs and allocate more budget towards profitable items. For instance, if the data shows a particular item is in high demand, retailers can allocate more costs for that item, ensuring it is available at all times to drive sales. Similarly, if an item is not selling well retailers can reduce purchases in the supply chain to save costs and avoid overstocking.

Retailers can also optimise their transportation of items based on individual store performance. Retailers can track this data using advanced analytics and reporting tools that are integrated with their wider technologies and individual stores, creating a holistic real-time view of the entire retail ecosystem. As a result, any unnecessary transportation costs of lower-performing products that are not necessarily required in specific stores can be reduced.

Retailers can also use this data to anticipate future trends, while mitigating risk and potential losses, helping them to achieve a more cost-effective operation.

The Takeaway

Utilising and benefiting from real-time analytics ultimately gives businesses a competitive edge and provides the ability to grow sustainably. Gaining real-time visibility of both customer shopping habits and wider retail operations allows brands to make informed decisions, ultimately resulting in improved customer experience, optimised operational costs and increased profitability. Retailers must leverage an integrated retail solution that weaves different parts of their retail ecosystem and facilitates accurate data in real time.