The Retail industry holds a great share of the global market. It is the largest industry with the highest customer base. It plays a very important role in driving the aggregate market. The primary principle on which the retail industry functions revolves around the 4Ps. Product, Price, Place, and Promotion, each of which needs to be perfect to attain customer loyalty and satisfaction.
For any business to be successful, it needs to keep up with the on-going market trends. Business Intelligence [BI] is a set of smart strategies, technology in the collection, maintenance, presentation and analyzing the business information. BI is the integration of technologies to extract, transform, and load data into data boards and databases.
Why is Business Intelligence Important in the Retail Industry?
The retail industry is a fairly large industry with a lot of diversities. To manage such a large industry and to ensure customer satisfaction, business intelligence is a must. The implementation of BI technology in online retailing platforms is a major driving reason for the increasing success of these platforms.
The thing which customers desire in the present scenario is related to instant gratification of their needs. Business intelligence software can help search the databases and come up with instant solutions as per the customer requirements. A very simple example to explain this would be that of a POS system that is used in the retail stores while processing sales invoices. The software on scanning the bar code of a product or by a particularly unique product number printed on the product can know about the price and the various discounts attached to it. The stock of products can be tracked from the same system. POS solutions help retailers in quick and convenient stock management, profit calculation, and fulfilling customer satisfaction.
Business Intelligence systems also help track record of sales under each customer, which assists the retailers to study consumer behavior and preferences and accordingly suggest new offers or new products to them.
There are several fields where business intelligence can be used in the retail industry:
1. Customer Communication: Business Intelligence systems have a history of purchases and interests. Through this data, consumer preferences can be analyzed and offer in the form of mails or mobile messages can be circulated. Remember all the emails and messages you receive from online retailers. These are examples of how smart communication is established with the consumer through business intelligence systems.
2. Advertising: How do the offers of buy 1 and get 1 free get idealized? It is again through BI Systems that the retailers study the views and searches of a customer and accordingly offer combo packages which relatively cost less.
3. Profit Calculation and Decision Making: BI Systems are an inventory of all the data related to business. So through these inventories, a business owner can easily calculate which product has made what kind of an impact on the public. Accordingly, the production and budget preparation of a company can be done.
To summarize the entire idea of Business Intelligence software, it primarily helps in knowing the customer base. Any business needs to know its customers. BI systems offer data management solutions, POS solutions, and customer solutions for the overall development of the business.