Why Data Science is Crucial in Retail

From the prediction of popular trends to the final selling of the products, Data Science is now being used at each stage of the Retail Business. The Data Science is assisting the Retail Industry by mainly pre-forecasting of demand for the products, Optimization of the pricing to compete in a better way, Detecting the interested customers for the products, Approaching the target customers in a best possible way, make them spending the money and finally heading towards to selling the next product to them.

Prediction of the Popular TrendsRetailers are having an extensive range of software and tools available to their stores and shops to find out the "must have" products for the current & next seasons. The algorithms of Trend Forecasting help Retailers to post the Predictive Products on Social Media to increase the selling. These algorithms are highly used to create the buzz in Market by analyzing the buying data of the products. Similarly, Marketers and Retailers engage in the unique technique of Data Science known as "Sentiment Analysis" that uses the Machine Learning Algorithms for determining the new product prediction in the context of what will be the Top Products in different categories to Sell.

Read More: http://canopusdatainsights.com/

Demand ForecastingAfter understanding the target products that a customer will buy, then it’s the forecasting of "Place" where the bug will be planted. It includes the collection of demographic and geographic data that will indicate the habits of spending in the market.

Price OptimizationRetail Giants are using real-time Merchandise Systems on a daily basis to track the Transactions, Inventory Demand, Activities of the Market Competitors and responding to changes in the Market in real time.The optimization also determines the dropping of Prices which is termed as the "Mark Down Optimization". Retailers who are new to the Analytics Domain reduces the price of the products at the end of a particular season on a general basis. However, in correcting this assumption, Data Analytics has proved the fact that the slight price reductions from the starting of the Season will generate more Leads and Revenues for the Seasoning Retailers.

Customer IdentificationBy using Recommendation Systems, the Retailers can easily decide the best ways to find the Customers to put the right items in front of them. The data which is collected through these records and loyalty software makes the Retailers rely completely on these Recommendation Generating Technologies.The insight of predicting the interactions of Customers with the Retailers by using the existing Contacts of Customers help Retailers to determine the accurate pitch along with the best Offers and Promotions to sell the products by broadcasting Emails, SMS, Push Notifications and Other Pop-ups to purchase the right product.

Taking the moneyAccording to the facts of Data Analytics, it is seen that a large number of online customers cancel their purchase at the last moment due to unavailability of their debit or credit cards to make the transaction.In this Scenario, Fraud Detection and Fraud Prevention Analytics has been widely implemented using which a Customer can pay the money after the delivery of a particular product by receiving a pre-purchase invoice, that makes the Payment and Transaction process easier for the Buyers as well as Sellers.

With these dependencies on Data Science and Analytics, the typical buying and selling process is emerging as a brand new avenue of the Retail Industry which has a more striking and sudden growth in terms of long-term profit, as the Data-Driven Retail Business is accelerating a possible Revenue Generation and building a more efficient long-lasting relationship with Customers.

Canopus Infosystems is an Iso 9001:2008 Certified Company that specializes in providing outsourced web & mobile development and testing services to clients worldwide.