According to the 2011 State of the Store Manager Report,36% of surveyed store managers felt that their promotions were not targeted at their best customers. Furthermore 29% of the surveyed store managers said the breakdown is the fault of corporate offices. The right path is to collaborate on promotions and potentially give more autonomy to the store managers on promotion decisions. Cloud analytics delivers these capabilities:Centralized analysis, localized insights and guidance. Here are four ways that cloud analytics help retailers boost margins and same store sales.
- Discretionary pricing: Provide options (to select or to reject) on promotional pricing that best serve the needs of the local customer base.
- Guidance on in-store promotions: Provide insights on what is selling well, at other stores, and at what margins. Identify catalysts to sales. Give store heads guidance on what is not selling well relative to other stores. Use insights for proactive promotion of end-caps and push. Use insights to train employees.
- More time on sales, less on analysis: Store head should spend bulk of time on floor arranging demos, marketing and training staff. Cut down on their time spent on in-store analysis. Use the cloud to deliver insights they need.
- Negotiating power: Ongoing, local tracking helps corporate negotiate better national deals with vendors when contract comes up for renewal.
To learn more, download the case study below. This initiative was led by a major retailer that was losing market share to discount channels and online retailers on its Health and Beauty department.