Today’s topic in this series on using social data in the retail industry is related to price and efficiency. Everyone likes lower prices and many retailers offer competitive pricing as a way to differentiate. To make this strategy work, however, retailers must pay attention to how efficiently they run their business. If they can save money through smarter operations, then it’s possible to pass these savings to customers and become more competitive as a result.
One way retailers can achieve operational efficiency is through supply chain management, such as accurately predicting demand for specific products. Case in point, many retailers already prepare for well-known peak demands, such as stockpiling turkey at Thanksgiving.
But social data can amplify this ability to predict demand. Specifically, retailers could use social data to learn more about their customers in each local branch and gain insights to trends that might impact sales. For example, a fashion store with shops located in malls throughout the US could track that its West coast customers have a higher propensity to follow certain celebrity figures, and thus order merchandise endorsed by those celebrities for all California, Oregon and Washington stores.
What is your company doing to improve price and efficiency through the use of social data?
For more information about how price and efficiency, as well as other areas of value, can be enhanced through social data, see Accenture’s point of view, “Unlocking Value from Social Data.”