Like most industries and sectors, retailers are driven by the need to provide good customer service. In a crowded, competitive market, this need becomes more prominent. Gaining any kind of advantage becomes invaluable, particularly when it comes to understanding your market; the secret to which is having — and using — insights derived from data.
Predictive analytics also can be used to gain an understanding of the wider market environment and where it’s headed in order to take advantage of opportunities, and help drive supply and marketing decisions. In fact, 79% of retailers believe predictive analytics is primarily about exploiting opportunity.
Factoring in things like weather forecasts to predict demand for seasonal goods, as well as building behavioral models of customer demographics to anticipate what channels they want to use, can give retailers insight into what they should be doing to gain a competitive edge. By using sales and behavioral data alongside information about market conditions, retailers can accurately project demand for anything from burgers to a mobile optimized web site.