Role of Data Analytics in Retail and Marketing

Running Head: MANAGEMENT 0
DISRUPTION IN BUSINESS

MANAGEMENT 1
Table of Contents
Role of data analytics in Retail sector....................................................................................2
Role of data analytics in Marketing.......................................................................................3
References.................................................................................................................................5

MANAGEMENT 2
Role of data analytics in Retail sector
Retail is one of the fastest-moving non-contractual corporate sectors and it is continuously
evolving and transforming with constant changes and business competition. Sales in 2017
were clocked at USD 3.53 trillion, showing growth at 4% (Ray, 2017). With rising
competitiveness in the retail industry, it is very significant to optimize the service processes
for the higher satisfaction of consumer expectations. Analysing data and creating changes
adjustable to gain consumer favourability is very significant for creating profits. This section
highlights the role of data analytics in the Australia retail industry. Australia retail sector is
facing the biggest disruption to changing demographics and consumer expectations, e-
commerce and other tremendous amount of changes. This cause the importance of data
analytics in the retail industry to be significant.
Retail data analytics deal with recognising potential consumers relying on their past
purchases, discovering the best way to handle them with the help of targeted marketing
strategies. Some of the key functions of data analytics include – price optimisation, demand
prediction, trend forecasting, prediction of future performance, consumer identification, less
costly business development, choosing of greater ROI opportunities (Floyd et al, 2014).
Retailers are benefitted with the retail data analytics with collection of information about
consumers and assist them with rising consumer outreach and sales. All the above mentioned
functions of data analytics help in exploiting the insights attained from data analytics for
improved performance and greater risk management.
With data analytics, brands can also redesign consumer experience with leveraging the power
of social connections and digital world. For instance, it assists retailers to develop new
opportunities to match customer desires and create value for the business. Considering this
aspect, David Jones flagship store in Sydney is undertaking a $200 million transformation;
making a supreme level of tailored consumer experience (Mitchell, 2018).
In terms of potential disruption, big data analytics is now being deployed at every phase of
the retail process, - anticipating future demand and sales with the help of predictive
simulation, tracking emerging popular products, optimising product placements and many
more. There is also the whole world of e-commerce that has taken off in a big way which has
provided to various retailers the decisions to create a link between digital presence and brick-