There are many variables to track while running online grocery stores, and leveraging data analytics gives you a clear picture. With the insights you gain from store data and customer profiles, you can build a strategy to boost online sales.
Using data analytics, store owners can keep up with customer demand, market patterns, and micro-trends while maintaining standards in key operational areas like order fulfillment, customer experience (CX), and inventory management.
Why grocery stores need data analytics
Grocery ecommerce stores have a mountain of useful data. The information in a store’s knowledge base can be used in many ways, from sales records to customer profiles.
Over time, implementing data analytics in online grocery stores benefits buyers and sellers. The customers enjoy superior CX and get more value from the store, while the owners benefit from streamlined processes, more efficiency, lower operational costs, and boost online sales.
Data analytics: The key to making more online grocery sales
Like any other ecommerce enterprise, online grocery stores depend on continued sales for long-term success. Owners of online grocery stores who make data-driven decisions about their store’s operations will see this reflected in their sales figures.
Data analysis and analytics are proven methods for boosting online sales and overall performance, so let’s take a moment to understand the difference.
Data analysis
This is a retrospective exercise. Data analysis seeks to make sense of historical data and understand the reasons behind it. The chief question in data analysis is, “Why did this happen?”
For example, imagine a grocery store that runs out of frozen turkeys in November. Analyzing this stockout will involve determining whether increased demand or inadequate storage units caused it.
Data analytics
This is a forward-looking exercise. Data analytics seeks to predict the future by extrapolating from previous trends and patterns. The chief question in data analytics is, “What will happen next?”
Taking the frozen turkey shortage example further, data analytics will build on the conclusions from data analysis. Since Thanksgiving falls in November, it is likely that your store fell short of turkeys due to a spike in seasonal demand. Data analytics will recommend increasing the number of frozen turkey units in your inventory next year to avoid another incident that will cause you to lose out on sales.
Most people use data analysis and analytics interchangeably, but knowing the difference will help you get the most out of your organization’s data.
Let’s look at some of the most impactful ways intelligent data management can boost online sales for grocery stores.
1. Get powerful insights by collecting information for data analytics
There are two ways to sort grocery store customer data. The first category is data generated through customer activity, like past purchases, search history, and pages visited. The second category is data that customers have volunteered about themselves. This includes customer sign-up information, survey responses, and online reviews.
Both data types are extremely valuable in building comprehensive customer profiles for grocery stores. As the customer life cycle matures, the data in these profiles becomes more rich and complex. Grocery ecommerce platforms now have artificial intelligence (AI) and machine learning (ML) enhanced analytics tools that accurately predict customer behavior.
2. Achieve accurate sales forecasting and inventory anagement
Inventory management is an aspect of online grocery stores where data analytics is critical. Optimizing stock levels, adjusting to fluctuating demand, and minimizing storage costs is a dream scenario for online grocers. With data analytics, that dream can become a reality.
Tracking sales data is one of the best ways to update inventory levels in real-time. Modern grocery ecommerce platforms offer a convenient solution by providing robust sales reports. A survey of online grocers by Zebra found that 72% of retailers were planning to reinvent their supply chain by implementing smart, AI-driven analytics.
3. Increase customer engagement with personalized marketing campaigns
Many online grocery shoppers use apps or websites to compare prices. Unfortunately, this leads to high customer churn and low conversion rates. Turn this equation on its head by implementing personalization in your online grocery store.
Data analytics will help you push relevant product recommendations to customers based on their needs and preferences. More than 80% of consumers prefer personalized shopping experiences, which has become an important driver for boosting online sales.
You can offer special offers, bundle offers, or promotions that are more likely to result in a conversion, increasing your online grocery sales.
4. Boost conversion rates by a/b testing and optimizing your store
Whether you run your business using a website, an app, or both, it's vital to try new strategies to find what appeals to your customers.
A/B testing involves using different text or images for the same product and then analyzing sales data to see which version performed better with your customers. Each test will help you develop new iterations of product listings, push notifications, and store announcements for grocery stores that increase customer engagement and boost online sales.
Conclusion
Boosting online sales doesn’t have to be complicated. With data analytics, grocery stores can increase their efficiency and productivity, increasing sales.
A few ways you can leverage data analytics to your store’s advantage include:
- Predicting customer behavior through data collection
- Effective inventory management using sales forecasting
- Rolling out personalized marketing campaigns
- Optimizing offers and promotions through testing
You will need a robust grocery ecommerce platform like Wave Grocery to leverage data analytics to grow your online grocery sales. Gather your customer, store, and sales data in a central hub and derive insights that benefit your business with powerful analytical tools.
