20 December 2023

Analytics in retail: A foundation that lasts

analytics graph

The retail industry is constantly shifting, making it one of the most dynamic landscapes to deal with.

Understanding and connecting with customers is vital to keep your business thriving. But what’s the best way to make that happen? 

Believe it or not, people-centric analytics could be your key to revolutionising how retailers approach their business strategies. From making data-driven decisions to informed financial planning, here’s how harnessing the power of data analytics with a people-first mindset could be a game-changer for your business.  

A specialised approach 

Customers want to feel special. How do you give each one a first-class experience without spiking your costs? 

People-centric analytics makes it really easy to dig into the preferences and expectations of individual customers. Personalisation makes creating targeted marketing campaigns, tailored promotions and a better shopping experience, which can really boost engagement with your brand and your storefront. 

Employee engagement 

With stronger analytics, you can understand and optimise a range of workforce dynamics. That leads to enhanced training programs, better staff allocation and a generally happier environment that puts emphasis on wellness in the workplace and employee wellbeing. 

According to Gallup, highly engaged teams are 21% more productive. They also deliver better results, better customer service and more sales. 

Financial planning and analytics 

Financial planning and analysis (FP&A) is key to building a bedrock to work from, which will help you improve your sustainability and growth. FP&A enables you to turn raw data into real insights, and in a landscape where trends keep changing, you desperately need a firm grasp on financial data at all times. 

By analysing sales, inventory, and operational metrics, retailers are able to optimise their resources and make data-driven decisions that impact the bottom line.  

Accurate budgeting and forecasting is really important for financial success in retail. With stronger financial planning in place, your teams will be able to create financial models that can be used to jump on new opportunities and anticipate challenges. From there, you’ll have a system that is both more reactive and more proactive. 

Make decisions faster 

You can’t hesitate to make decisions when a situation changes. In retail, the speed of decision making is what will set you apart from competitors. Real-time analytics is a crucial tool in this battle. 

These more advanced analytics and forecasting tools ensure that you can generate insights more accurately and more quickly. as you need to create more accurate insights. 

By leveraging advanced analytics and forecasting tools, retailers can adapt pricing strategies, optimise promotional campaigns, and proactively manage cash flow, ensuring agility even when customer needs and priorities shift. 

Final Thoughts 

Analytics of all stripes, whether people-driven or FP&A is not just about numbers. It’s about empowering you to make the right strategic decisions. You’ll be able to align your goals with the reality of your operation, creating a clear picture of how things are going. 

In a retail world where success hinges on adaptability and foresight, analytics are your sword and shield against changing dynamics, keeping your business running at peak efficiency and adapting as needed. 

At MHR we provide key people-centric and FP&A solutions fit to meet the demands of the modern retail challenges.

Zoe McFarlane, Account Director at MHR

Zoe McFarlane

Zoe McFarlane is an expert in the unique challenges facing the private sector, particularly the retail industry.

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