The Data Analytics Revolution Goes Brick-And-Mortar

June 2014 Integrated Solutions For Retailers

By Kellie Peterson, director of marketing, iInside

Why traditional retailers are leveraging the power of data to improve customer experience and the bottom line.

Savvy online retailers have been using data analytics to improve their shopping experience for years and, not surprisingly, today’s e-commerce experience is enormously better than it used to be. Online retailers now serve up products that their customers are interested in, speed customers through checkout, and offer dynamic incentives to help close a sale.

Today, the rapidly developing field of behavior analytics is enabling retailers to apply that data-driven approach to the in-store experience. When you consider that brick-and-mortar sales make up 89 percent of all retail spending in the U.S., the strategy makes sense. Brick-andmortar dominance isn’t going to change anytime soon, either. A recent analysis by McKinsey & Company argued that even in 2025 “brickand- mortar stores should still account for approximately 85 percent of U.S. retail sales.” Competition remains intense, however, meaning in-store analytics will increasingly become the essential competitive tool.