Attention retailers: If you’ve put off investing in a business intelligence (BI) solution for fear that the implementation process will be unmanageable or, worse, unrelenting, we have good news for you.
Our dedicated TARGIT partner, Kapacity, specializes in implementing the TARGIT Decision Suite BI solution – and streamlining the process for the retail industry.
“It does not have to be a big bang running over eight months,” says Bo Kær Jørgensen, Kapacity’s Senior Business Analytics Consultant. “We prefer to divide the process into smaller stages so we are able to get something up and running quickly.”
”Start simple, think complexly”
The typical process of implementation starts with a workshop to uncover your company’s BI needs. During the workshop, TARGIT and Kapacity utilize the experience and knowledge gained from working with retail customers like Normal and Søstrene Grene. The workshop discovery process also identifies KPIs from both the industry and your specific company, which can then be used to design a tailored solution.
After the workshop, we create a data warehouse, which consists of gathering different data sources and building a cube on top of them. The TARGIT BI solution depends on this cube of gathered data, so it’s critical to the implementation process. Several of our customers choose to integrate with Navision’s add-on, LS Retail, which acts as the back end.
When TARGIT works with your company’s data, we train your end users. We start with small steps to give every user a chance to get comfortable with the system. If questions come up during our training session, we can answer them on the spot. Likewise, when users experience quick wins, we can iterate and update the data warehouse on the fly. As Bo Kær Jørgensen says at the start of every training session: “Start simple, think complexly.”
Data governance is another area that we try to simplify. It varies from company to company within the retail industry, but questions always come up during the implementation process. For instance, who in the company needs what data? Are your individual shops pulling their own data? Are reports being sent out from a centralized source? Do you have a portal for specific users? Whatever a company’s needs, TARGIT supports them all.
Retail Industry KPIs & Dashboards
Together, Kapacity and TARGIT have identified certain KPIs that are common to the retail industry. Bo Kær Jørgensen cites these three typical retail KPIs:
- Basket Size: How large is each purchase per customer? Are there differences between stores?
- Cross-Selling: Which products are often bought together? Are there foot traffic patterns that should influence the layout of the stores?
- Weekday/Weekly Comparisons: How do one day’s or one week’s sales compare with the same time last year?
In addition to KPIs, TARGIT provides retail companies with an easy, manageable way to find answers fast, so your company always has a clear overview of how it’s performing at any given moment. TARGIT’s BI solution can help a variety of functional areas in the retail industry answer their most frequent questions. Bo Kær Jørgensen points to these job functions as examples:
- Area Manager: What and how much are the individual stores selling, and what are the differences between them?
- Store Manager: What am I selling? How does my store’s performance compare to others?
- Purchasing: What sells quickly and what stays in stock for a long time? Which commodities should be on sale?
- HR: How is our staffing? Are there any sales patterns we should track based on the work of specific employees?
Want to see how TARGIT BI visualizes this data? Click here
for examples of our retail industry dashboards.
Retail Trends and BI Potential
Trends emerge on a daily basis in the fast-paced retail industry. TARGIT BI is built to keep up, supporting your ongoing data needs and helping you develop new ways to improve sales. Consider the typical retail KPI of cross-selling. By studying cross-selling patterns, you can use TARGIT to create heat maps that track the customer journey throughout your stores. You can even track how many customers actually buy something.
Loyalty programs are another popular retail industry trend. A loyalty program membership gives the company additional data about specific customers. TARGIT helps utilize this new data to its fullest.
Optimize Your Company in 5 Steps
The bottom line: Every type of retail company can benefit from a BI solution, and it’s worth the investment in time and resources upfront.
Want to learn how to make fast and effective decisions based on data like shop and employee performance, procure-to-pay cycle, basket analysis, and other relevant parameters? Learn five steps to optimize your retail company with BI and analytics in this free e-book.