Discussing the myriad of legacy technologies, available from dozens of vendors and adopted by retailers over the past decade, that are not delivering the necessary ROI, Patel believes three key ingredients are required for success—rich integrated datasets, prescriptive analytics, which pinpoint business opportunities, and robust technology that deliver insights via interactive visualization. IRI’s solutions based on these key ingredients help retailers deepen their understanding of consumer behavior while optimizing business processes such as assortment, pricing, promotion, shopper marketing, supply chain and vendor collaboration.
IRI gathers data across the entire U.S. tracking over 1.3 trillion dollars worth of annual sales data for the retail CPG industry alone. IRI’s ocean of big data also integrates household level purchase behavior, online, social and television exposure, consumer sentiment, frequent shopper data, unemployment, weather, gas prices and many more datasets. “Each of these individual data sets is large and complex and integrating them together further compounds information overload. That makes our prescriptive analytics critical as a means of distilling a prioritized set of specific recommendations that retailers can action,” explains Patel.
We believe in democratization of data across the entire enterprise so that people can take action to grow their business
For a large client whose products are sold in hundreds of thousands of stores across U.S., the challenge lied in optimizing their product assortment across the stores while also optimizing the shelf space in each of these stores to maximize profit. “IRI’s Assortment Optimization solution automatically ran data gathered from hundreds of different data sources through its prescriptive analytics algorithms to drive specific recommendations,” says Patel. The result was a several percent increase in sales, which is a substantial ROI from the recommendations of the tool.
“We at IRI believe in democratization of data across the entire enterprise so that anyone from the deepest domain expert to the most senior level executive to the most junior analyst can derive benefit from complex analytics and data insights in a simplified way,” states Patel. “That is how people take action to grow their business.”