Grocery Data

Phil: So inside big data asked I'm gonna get this name, wrong. Begrat Safarian, who's the co-founder and CEO of Local Express to talk about the four areas where grocery stores can use data analytics to enhance operation. 

Phil: So there's a couple stats in here before I get to, to the four points. Number one, there was a survey that was done and 59% of grocers agree that their third party delivery partnerships are unprofitable. So, you know, almost 60% of grocers are saying, you know, this whole ecosystem this eCommerce ecosystem is broken and the profitability that the grocers face when using third party vendors is due to the loss of their data, which impacts their inventory management, marketing, and customer service. So he goes on for these four points, point number one is inventory management, why it's so important. In 2021, he writes two thirds of in-store shoppers and 51% of online customers experienced out of stock pro products, which resulted in more than 3 billion loss for supermarkets in the US. Number two, online shopping, 86% of grocers indicate they're dissatisfied with their online profitability. 

Phil: Grocers need to collect sufficient data on the number and volume of digital orders. And what I don't like is what he says here, that if you're doing a good job with data, you can test whether you can increase product prices while promoting lower fees and better service through your own eCommerce platform, without risking lower order volumes or loss sales. IBM, some years ago had come up with a shelf strip that instead of having those paper price, tags, or plastic price tags, you know, they could change the prices like this. So if it wasn't busy in the store, they might lower prices if they were getting outta stock. And frankly, I just don't subscribe to that policy. 99% of marketers say that personalization helps advance customer relationship. That's number three with marketing and number four is rentability that grocery stores can test different pricing strategies again and, and analyze the effect on sales data, allowing them to identify products where price raise won't necessarily affect buyer's decisions. Seriously, with the prices going through the roof with shortages, we want to try to, you know, cheat people and raise prices. I don't think so.