Now in its 3rd year, EKN’s annual Analytics in Retail industry benchmark is based on a survey of 200+ retailers. Consistent with findings of past studies, retailers continue to view analytics as extremely strategic, yet struggle to derive commensurate value from their analytics investments. 80% state they lag behind Amazon in terms of the strategic use of analytics.
Business analytics will only evolve further into a strategic capability that sits at the intersection of customer preferences, business strategy and business processes. Insights will be deeply embedded across a retailer’s functional value chain, affording it both the ability to be investigative and predictive (strategic), as well as the adeptness to be efficient and agile (operational).
A smarter, integrated brand of retail cannot be delivered without the ability to improve decision-making across the board via deeper customer insights. In 2014 retailers will focus on delivering existing insights to the right person at the right time with the relevant context (investments in Mobile Business Intelligence and Digital Dashboards will rise) and on ensuring insights are easily consumed and acted upon by business users (Data Visualization). In-store customer location tracking will be one of 2014’s analytics buzzworthy use cases, whereas investments in Big Data will continue to be byte sized.
However, to build sustainable competitive differentiation through business analytics, retailers will need to go one step further than just focusing on data, tools and resources. Those that are able to overlay their analytics capabilities with a strategy and organizational capability tightly linked with their business model will lead the way. Therein lies the future of retail analytics.
In this report:
- The hindsight > insight > foresight continuum
- The 4 pillars of a holistic analytics strategy
- The anatomy of an analytics outperformer
- Amazon: The cult of analytics
- Retail Honor Board