Where there was once the 3P’s of marketing: promotion, price and place, today we have the 1D. More specifically, data.
This is the view put forward in Produce Business, which explains that the huge volumes of data generated, collected and analysed by the food retail sector have just one aim: to maximise profit.
Data is essential in driving key decisions. Within the food retail sector, every single item that is bought, along with the painstaking detail about the sale, is stored in huge databases, along with data collected by the retailers’ loyalty schemes. Added to that you also have data relating to weather, demographics and more. With so much information, it becomes possible to predict when and where a particular customer will next be buying a particular item of food.
Thanks to artificial intelligence (AI), retailers are busy gathering endless product- and price-matching information from competitors’ websites to be stored on a database. They are also using AI to keep check on their own levels of stock and incoming deliveries.
Meanwhile, machine-learning algorithms are able to predict customer demands pinpointed on a more local level. At speeds us humans can only dream of, these programs are able to forecast how many units of a specific product are required and the price they need to be sold at to achieve the greatest profit and the least waste.
Data is also used to decide where a product will get the best traction with the consumer. This data is more focused on A/B experiments that take place in store and by comparisons of consumer buying behaviour.
Suffice to say, when it comes to ordering stock, promotions and pricing, making choices based on instinct is out and AI-driven decisions are in. Which leaves the question: are all food retailers ready to take on the challenge of becoming data-driven organisations?
Not quite. But for every retailer that is hesitant, there is another willing to bet their bottom (line) dollar on data science and AI.
Looking specifically at the fresh produce market, time is of the essence. Crops need to be planted, harvested and on the shelves as soon as possible to guarantee quality and freshness. And that means being able to predict what stock each store needs to maximise sales, at the right price.
In short, data tools allow a company to make smarter decisions and predictions, enjoy a smoother, more efficient process, and see more revenue coming their way.
It’s time fresh produce retailers make the most of these unbiased, analytical insights to gain a crucial edge over the competition.
Find out how your business can benefit from retail insights. Get in touch with the team at the Delta Group today.