3 data secrets retail businesses can't afford to miss

In light of the rising cost of doing business in Australia, it’s understandable that many retailers are prioritising efficiency, says Shaun Broughton, Managing Director, APAC at Shopify. Efficiency enables businesses to do more with less, making it an attractive proposition for retailers looking to control costs, boost productivity and increase revenue.

This is according to recent research from Shopify, which revealed retailers are increasingly conscious of business efficiencies that could help them do more without straining resources. The study found that efficiency issues (e.g. lack of operational efficiency, inefficient supply chain practices, complex business systems, and manual processes) are a major contributor to retailers’ internal challenges, impacting 61 per cent of retailers.

While there are any number of ways to drive efficiency in a business, here are three priority areas which will help drive results for retailers:

Gain insight by unifying data

Business Intelligence was found to be the number one area that Australian retailers plan to increase their technology investment in the coming year, with 65 per cent of retailers citing it, even more than automation and AI.

The increase is likely due to retailers’ need for comprehensive visibility and insight across their business to combat operational inefficiencies that are straining employees and profit margins. This could include identifying supply chain, inventory, or stock issues, as well as tasks that may be eating up resources but not providing much in terms of output.

However, many retailers are facing the barrier of data siloed in discrete digital systems, making it hard to gain a unified view of the organisation in one place. Finding the right solutions and building the right teams to unify and consolidate operational data is key.

Streamline retail operations with AI and automation

While business intelligence is a priority, it underpins innovative technology within the business, especially AI and automation, which need good data to work well. By leveraging data and automation, retailers can explore streamlined operational approaches using innovations like AI chatbots and robotic process automation.

For instance, AI-enabled assistants can support staff with crafting accurate product descriptions, image generation and developing replies to customer enquiries that can be approved (or edited) in a few clicks.

This can help reallocate staff resources towards more valuable, customer-facing tasks. There is even the bonus of driving sales with tools like AI-powered cross-selling recommendations on chatbots to suit customer preferences.

Boost productivity

The maintenance of commerce solutions and tech stacks within retail companies doesn’t have to be a huge time commitment. Over half (58 per cent) of retailers are planning to increase investment in commerce systems over the next 12 months to drive growth, another key digital component that also helps to support operational efficiencies. Meanwhile, 56% of retailers are also planning to invest more in inventory management systems.

With the right tools and technology to support back end and front of house, retailers can free up employees’ time, allowing them to focus on driving efficiency for the business, and focus on areas that better align with their career growth.

Operational excellence for resiliency

The current retail landscape in Australia of escalating business costs and consumer pressures underscores the critical importance of efficiency. By prioritising unified data insights, leveraging AI and automation, and investing in robust commerce and inventory management systems, retailers can effectively address internal challenges and optimise resource allocation.

Embracing such strategies not only fosters operational excellence but also improves the resiliency of retailers to meet the evolving market demands and enhance customer satisfaction in an increasingly competitive environment.

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