Mark Price

RSR Research: Retail Connections - Predictive Analytics in a Down Economy

March 1, 2010

FROM RETAILWIRE:
At an analytics roundtable at RetailConnections' Third Annual Business Executive Summit, the CIO of a major jewelry retailer said predictive analytics had been completely helpful to his company. In many ways, 2009 was a very profitable year, with little excess inventory. What do you think of the value of predictive analytics?      [more...]

There is a tendency to look at the issue as a macro one, rather than a truly granular challenge.

The issue is not how retailers manage their inventories, although that appears to be the issue. The real question is--what do Best Customers need from your company, and can they get it when they want it. If you do not have what they need, they will seek it elsewhere, which provides opportunity to experience other brands and potential attrition. If you provide enough Best Customers with enough opportunities to experience enough brands, they will leave your business, and you will be left with fickle, promotion-sensitive customers who will leave you in a heartbeat if you do not give away your profits to them.

Is that loss balanced by the benefits of lower inventory and higher turns?