One great thing about being a retailer in the 21st century is the unprecedented access to valuable consumer and market insights that you get. Even as little as ten years ago, making business decisions was more complicated than it is today because of the lack of easy-access analytics platforms. Now, getting consumer insights to fuel your next campaign is as simple as clicking a button.

According to the March 2020 BizTech article, A Guide to Predictive Analytics in Retail, “Data analytics continues to be a popular topic across industries, but predictive analytics could be the aspect with the biggest potential payoff for retailers. It combines data mining, statistical modeling, and machine learning to take historical information and use it to identify the likelihood of future outcomes.”

As a retailer, how can predictive analytics help you stay ahead of the competition?

In a previous blog post, we discussed the importance of retailers knowing their target audience so that they can increase the effectiveness of their ad campaigns and reduce ad waste. 

Knowing not only when and where your target audience is shopping, but also what did and didn’t work in your previous ad campaigns will give you invaluable insight into what your customers are interested in. This ensures that future campaigns are successful. Using predictive analytics, you can:

• Create an ad campaign that aligns with your target audience, based on data from past campaigns
• Predict what your customers will want to see and engage them
• Use behavioral analytics to improve conversion rates

By using location intelligence, you’ll be able to create ads that win over customers before your competition.

With COVID-19 impacting consumer shopping behaviors, it’s like someone turned the light switch off and any marketing decisions are a hypothetical shot in the dark. No one knows what shopping behaviors are going to look like as we navigate this challenging time.

By using location intelligence,  you can analyze what your customers have been shopping for and what interests them the most. Combine this information with datasets into your predictive analytics tool of choice and you will have the competitive upper hand. Being able to predict buying behaviors and what customers want can be the safety net you might need for the uncertain economic future.

Because you are utilizing a predictive analytics tool, you will know what your customers are going to want before they want it. This superpower will give you direct insight into what you should stock up on and what customers want before your competitors can catch wind of it.

Competitive advantage isn’t the only advantage of using predictive analytics to meet supply and demand. Always having what your customers want in stock will increase loyalty and will improve the overall customer experience.

Imagine having that knowledge at your fingertips, how would that impact your sales and what could you do with the extra cash?

Using data and analytics in retail to get and stay ahead of the competition isn’t a new concept, but it is one that hasn’t been used enough. By utilizing predictive analytics to determine consumer trends, you’re taking advantage of all that the digital age has to offer without overcomplicating your process. Think of predictive analytics as your own personal crystal ball, except the information you are getting has been proven by verified location intelligence. 

Take the guesswork out of your future campaigns and contact us today for a free consultation!