Chris McCann
I missed the opening of the business analytics session and walked through the door just as Chris McCann, president of 1-800-Flowers.com, kicked off the panel with a discussion of the various waves he has seen in the area of business analytics. From telephone to online to social networking and mobile commerce, opportunities are constantly changing and it is up to retailers to take advantage of those presented to reach their consumers through these new mediums.
With two pioneers in data analytics on hand (Tom Davenport, President’s Distinguished Professor of Information Technology and Management, Babson College, was the other), there was no shortage of information shared.
Below are ten interesting things I learned:
10 – Customer behavior is drastically changing. Data analytics help companies understand that behavior…Who is shopping? How are they getting there? What are they buying and when?
9 – The DELTA model outlines specific components of a successful data analytics program:
D – Data, E – Enterprise, L – Leadership, T – Targets, A – Analysts.
8 – Use data to transform decision making (make sure you have the right people on hand to analyze it!). Whether you’re presenting ideas to management, selecting new products and markets, or deciding what should be featured in email campaigns, data can back-up your decisions.
7 – Even small and medium size retailers can and should be using data analytics. The expense is decreasing and capabilities are increasing. Retailers are able to do certain types of analytics for free. Google Analytics can be used to determine how a website is doing, what customers are looking for, and where they are coming from.
Davenport (L) and McCann (R)
6 – Data analytics will give insight into how your customers are using different channels. In the case of 1-800-Flowers.com: who will want chocolate or food? Who will want bouquets? Who purchased what last year that they might want to order again?
5 – If you’re just starting out with data analytics and are trying to engrain them in the company culture, start by getting people who are analytically inclined in different parts of the business to talk to each other. Providing them a forum to share ideas and applications will almost always benefit the business.
4 – According to Tom Davenport, companies that are doing data analytics really well include Capital One, Harrah’s, Progressive Insurance, UPS, Google, and Netflix. Retail superstars include Tesco, Kroger, Amazon, Cabela’s, JCPenney, Hudson’s Bay, and, of course, 1-800-Flowers.com.
3 – Retailers can make the case to invest in the technology by tailoring investments to what the company deems most important. For example, a company interested in opening a lot of stores should consider investing in real estate type analytics. If a company is interested in getting the right merchandise, they may want to make the case for investing in supply chain analytics.
2 – Listen to your customers and don’t be afraid to respond. Consider undertaking a sentiment analysis – did you know there was such a thing? – to understand the level of engagement that your customers have.
1 – Predictions on what we’ll be talking about a year from now? Video analytics – a newer technology that allows retailers to analyze pixels in video to identify specific behaviors, objects or attitudes – is perhaps the next “wave.”
I hear the SAS booth has many of these technologies on display. Be sure to stop by when the EXPO floor opens tomorrow for a demo!