Transforming Retail using BizViz Analytics

by Varun Mohindhra

BizViz is a unique BI platform that was built to give users better knowledge and insight into their business. It enables users to assemble data from multiple structured, semi-structured, and unstructured data sources. This helps analysts provide Descriptive, Diagnostic, Predictive, and Prescriptive analytics.

As the retail sector undergoes rapid change, retailers face challenges in identifying their most loyal customers and their buying behavior.

Retailers will benefit by understanding that analytics can be a very powerful tool that can help them extract meaningful insight from volumes of data. The data is attained from purchase transactions

Retailers' Key Challenges:

  1. Identifying valuable customers in order to increase customer retention
  2. Analyzing customer buying behavior to improve customer experience and thereby expand the customer base

Customers

As a company's customer base grows, it needs to identify it's most valuable customers in order to efficiently manage marketing and increase customer retention. They can then have a more proactive relationship management plan.

How can BizViz help?

  1. Using the BizViz Predictive Analysis tool, we have performed RFM (Recency, Frequency, Monetary value) analysis to quantitatively identify which customers are most valuable.
  2. RFM analysis is based on the marketing axiom that "80% of your business comes from 20% of your customers."

  3. We have analyzed the customer's data and then developed a custom RFM algorithm to identify customer segments
  4. BizViz has defined the customer segments as follows:
  5. Best Customers - Customers who have placed many orders and made their last purchase recently. They have greater value and are more likely to buy again.
  6. New Customers - Customers who placed a few orders (1-3) recently. Although they have a lower value, they have the potential to move into the 'Best Customer' segment.
  7. Former Best Customers - Customers who were 'Best Customers' but have not made any purchase recently.
  8. One-time Buyers -Customers who have purchased from the store only one time.

How does this benefit retailers?

  • BizViz identifies a business's most valuable customers
  • Retailers can target offers and promotions to their loyal customers by analyzing their past buying behavior
  • Helps business offer better loyalty programs for each customer segments to decrease customer churn
  • Helps sales team in identifying the most effective marketing approach (ex. online or traditional advertising, event sponsorships, and other marketing avenues)
  • Converting 'One-time Buyers', New Customer's into 'Best Customers' by offering special promotions

Analyzing customer buying behavior

The advent of online shopping has enabled retailers to offer a wide range of products. However, it has become a daunting task for customers to go through the vast selection of products. Retailers are challenged with offering better product recommendation by analyzing customer buying behavior.

How can BizViz help?

  1. The BizViz Predictive Analysis tool can use 'Market Basket Analysis' to optimize product recommendations
  2. On performing multiple iterations of the algorithm, BizViz provides the best product recommendations based on current purchase, past purchases, and other customer telemetry.

How does this benefit retailers?

  1. BizViz provides better insight into customer buying behavior
  2. BizViz can help businesses optimize floor layout to improve the shopping experience Improve cross-selling
  3. Improve cross-selling