SMBs Turn To Retail Analytics

Increasing demand to understand consumer buying behaviour among retailers is boosting the use of retail analytics industry statistics with a strong adoption rate forecast for small- to medium-size businesses (SMBs), says a report from Global Market Insights Inc. Companies are adopting retail analytics to understand customers’ buying patterns and interpret and act on meaningful data insights. The market is set to surpass US$25 billion by 2027 with the store operations function segment poised to grow at around 20 per cent per year through 2027. In-store retail analytics applies various processes to in-store applications, helping businesses to obtain macro and micro-scale insights. Traffic counting, conversion rates, and customer behaviour are fundamental factors used by retailers to improve sales and customer satisfaction. In-store retail analytics has emerged as a viable solution to gain more customer insights and plan store operations accordingly. The software segment held more than 55 per cent of the retail analytics market share in 2020. SMBs are forecast to register a compound annual growth rate of about 20 per cent from 2021 to 2027. The growing adoption of digital technologies across SMBs to stay competitive against larger rival firms is supporting the segment growth. Small businesses that heavily rely on location will benefit significantly from spatial data and related retail analytics. They can use location analytics to analyze the optimum area to open a new store and ensure robust business growth.