Adobe Introduces Analytics for Retailers
by Nate Smith
posted on 09-27-2017
2017 has been a tough year for retail. Store closures and bankruptcies are happening at an unprecedented rate and, every retail brand seems to be grappling with the same conundrum – what’s the clearest path to success in an industry in which digital disruption has transformed the business model dynamics so drastically? The retail world we live in today is not the same world we lived in a decade ago, or even a few years ago. Consumer expectations for compelling engagement in the moments that matter have soared, which in turn has flipped the traditional model upside down. With increased competition from online behemoths and direct-to-consumer brands, the customer experience becomes critical to success in an environment addicted to discounts and fleeting loyalty. Today’s shoppers demand authentic, compelling experiences whenever, and wherever they’re shopping. For retailers seeking to meet these high expectations, analytics plays a massive role in helping them retailers understand who their various customer segments are, how they behave, and how to best make product and merchandising decisions.
Fruitful brands find that analytics can power every decision, from the strategic to the tactical. But, one of the most challenging elements to any analytics strategy is the first step – whether it’s the initial adoption of an analytics practice, or entering into a new stage of analytics maturity, such as going from diagnostic to predictive analytics. While most retailers have some familiarity with data and an aspiration to become data-driven, there can be an overwhelming sense of not knowing exactly where to begin. For many retailers, the problem is compounded by having individuals, and even teams, who need to make data-driven decisions, but may not have a deep — or any — analytics background. The irony is, that these teams typically touch the most customers – and need powerful analytics to surface actionable insights from multi-channel data as they develop relevant and compelling experiences.
Today, to address the challenges that come with launching an analytics strategy, today Adobe Analytics Cloud is unveiling powerful workspaces designed for retail brands. Building on Analysis Workspace — the easy-to-use data discovery and analysis tool within Adobe Analytics — retail brands can discover meaningful insights easier than ever before with pre-built templates. Aimed at helping retailers guide the full customer journey, and better understand purchasing patterns, these interactive product and merchandising templates are a one-stop shop for retailers. Powered by Adobe Sensei, Adobe’s artificial intelligence and machine learning framework, these new templates are built with Anomaly Detection and Contribution Analysis to get real-time access to conversion rates, merchandising, product performance, and product finding methods, among other insights.
Take an outdoor gear retailer, for example, who is running a nationwide Thanksgiving promotion that offers shoppers a deep discount on a marquee item, hoping to increase the basket with higher-margin add-ons. Upon entering Adobe Analytics, the retailer can immediately gain access to real-time information, and determine whether to make shifts that will ultimately drive sales and margin improvements, such as pricing changes, altering placements, promotions or recommendations on the site, and even deciding which target customer groups to invest more marketing dollars into.
By working with 10 of the top-10 retailers, including ASOS.com, True Value, Jet.com and The Home Depot, Adobe Analytics Cloud has established a deep heritage within the industry, and understands the data that successful retail brands need to leverage.
In today’s digital world, being able to respond to trends instantly is central to beating out the competition. Analytics can help brands discover how customers are interacting with sites and campaigns instantaneously, informing them how to change course if something isn’t working. Adobe is excited to give retailers a leg-up with an even faster way for any type of user to access visualizations and dashboards, to help create experiences that drive growth.