Analytics & MIS Planning for Your Internet Retail Store By Manish Chaturvedi

N e w Y o r k | M e x i c o | L o n d o n | N a i r o b i | S y d n e y | N e w D e l h i | P a n a m a | S i n g a p o r e

Analytics & MIS Planning for Your Internet Retail Store

Agenda • Business Intelligence v/s Analytics

• Business Challenges faced by Retailers

• Who should be the consumers?

• Being strategic v/s tactical

• Retail KPIs

Analytics as the tool and BI as the output. BI is the enterprise strategy and analytics is the tactic that enables the strategy.

Retail Analytics – Top challenges rated by Retailers

33%

58%

50%

58%

47%

68%

47%

26%

57%

24%

10%

33%

Merchants don't getinformation fast enough to

react to differences betweenforecast vs actual sales

We don't know what customersentiment is until we can see it

in sales

We struggle to matchinventory to demand

Can't identify our bestcustomers to offer special

incentives to them while theyare shopping

Retail Winners Average Performers Laggards

42%

54%

63%

73%

74%

36%

41%

30%

27%

24%

22%

4%

7%

0%

2%

Reduced Shrink

Better "what if" modelingcapabilities

Higher customer retention

Rapid response to chargesin consumer demand

Improved promotioneffectiveness

Very Valuable Somewhat Valuable Not Very Valuable

Top challenges by Performance Level Opportunities from BI to overcome Business challenges

Importance of BI in Modern Retail

47% of mega-retailers have had a BI strategy in place for longer than 2 years

22% of higher end of mid-market retail

36% of lower end of mid-market retailVs Vs

2%

10%

14%

55%

19%

0%

1%

17%

27%

58%

Catalog/call centers

Mobile/mCommerce

eCommerce

Brick and Mortar stores

All channels can take equal benefit

2012 2011

Channels that can derive benefits from BI Y-o-Y

Source: RSR Research

58% of Winners say all channels can take equal benefit from BI investments

43% of mid-market retailers report that they dump data into Excel as their primary method for BI insights

Across the board, Winners provide more insights access to their stakeholders than their peers do

Organization

Top Influencers in Retail Chain

Strategic Management Team Operations Team

Business Insight for CXOs• Insights to fine tune the strategy

• Insights to influence tactical decisions

• Comparative Sales

• Sales Performance

• Trends

• Figures

• Contribution (by product group, product, customer group)

Dashboard for Business Insights

Gauge Charts− YTD , MTD, WTD ,daywise comparison of Net Sales, Charts− Open Balance snapshot, Sales Trend, New Customers,

Sales Contribution

Comparative Store Sales

Store wise Funnel chart

Store Sales Performance

Strategic Insight

Store Sales Performance• Trends

• Figures

• Statistics

• Top Performers

• Bottom Performers

Scatter Charts • Evaluation of Individual Store

performance• Sales by transactions• Store/Product/ Customer/ Salesperson-

− Top Performer− Bottom performer

Tactical Insight

Affinity Analysis

• What sells more with what

• Strategic Insight to determine promotions and combos

Product Affinity• Frequency trend

• Support %age

• Confidence %age

Tactical Insight

Side by Side Analysis

• Compare sales figures and trends of multiple products in the same group

• Comparison across stores

Promotions • Which worked and which didn’t

• Net Sales v/s Promotional Sales

Tactical Insight

Inventory Insight

• Product drill down to warehouse inventory

• Available Stock

• When to Reorder

• Stock Shrinkage

Benefits• No more Stock out situations

• Visibility of Best selling / worst selling product

• Loss due to excess stock

• Shrinkage Analysis – insight into possible pilferages

Retail KPIs – Sales

By Customers and Customer Groups

By Items and Item Groups

By Stores

Retail KPIs – Marketing

Promotions and their effectiveness

Affinity Analysis

Side by Side comparisons

Retail KPIs – Warehousing and Inventory Management

ABC Analysis

Shrinkage (read pilferage) Analysis

Non Moving Items

Retail KPIs – Finance

YTD Sales

YTD Gross Profit

ROTA

Lets see these dashboards in action…

Thank You

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