Business analysis in trade: tools and approaches

How do supermarkets know what you want to buy before you even step foot in the door? Or why do promotions on your favourite products appear exactly when you need them most? None of this is a coincidence, but a carefully planned business analysis. Specialists use special tools and methods to understand what is happening in the market, how to make shopping more convenient for customers, and, of course, how to bring maximum benefit to their company. In this post, we will consider what tools are used for this purpose and how they work.

Definition and functions of business analysis

Business analysis is the process of collecting and evaluating data to make informed decisions. It is a set of measures that helps a business operate more efficiently and achieve its goals.
The benefits of business analysis are obvious:

• Improved strategic planning;
• optimisation of operational processes;
• Increased competitiveness;
• improving customer experience;
• forecasting market trends.

Analysis tools

1. Sales analytics.
   One of the main business analysis tools is sales analytics. It is used to understand which products sell best, when they are in greatest demand, and what strategies help to increase sales. In the future, this information will help you plan promotions and advertising campaigns.
2. Analysis of customer behaviour.
   Business analysis includes the study of customer behaviour. The way people move in the store, where they stop most often, what products they look at, what they buy together - all this information is collected and analysed. This helps to optimise the location of goods and increase sales.
3. Inventory management.
   Business analysis is impossible to imagine without competent inventory management, which helps to control the number of goods in the warehouse. That's why your favourite chocolate is always on the shelves. Business analysts monitor inventory levels and replenish warehouses in time to avoid shortages.
4. Demand forecasting.
   Business analysis also helps to predict future sales. For example, before the Christmas holidays, trade analysts know that sales of Christmas decorations will increase. Using data from previous years and special algorithms, experts can predict how many Christmas items should be ordered to meet demand but not overpay for unnecessary items. This helps to reduce losses and optimise stocks.

Data processing tools

Business analysts deal with a variety of programmes on a daily basis. Most often, they work in Excel, where large amounts of information are stored and processed. They also need to be able to use specialised software, such as Tableau, Power BI, etc., which is useful for deeper business analysis and interactive reports. In addition, analysts often work with databases, SQL queries to extract information, and CRM systems to monitor customer interactions. All these tools help to create a complete picture of business processes and provide a basis for strategic decision-making.

Approaches to business analysis

• SWOT analysis is a simple but effective method of business analysis. It is used to identify the strengths and weaknesses of a business, as well as opportunities and threats. For example, a wide range of products can be an advantage, ineffective advertising can be a disadvantage, new markets can be opportunities, and competitors can be threats. This method helps you better understand where you need to work on improvements.
• PEST analysis is used to assess external factors that can affect a business. It includes 4 main aspects: political, economic, social and technological factors. For example, new laws can affect taxes, economic crises can reduce purchasing power, social changes determine trends, and new technologies offer new opportunities for development.

Business analysis helps small shops and well-known chains to better understand their customers and operate more efficiently. Do you want to succeed in retail? Learn the basics of business analysis, as well as other aspects of entrepreneurial and commercial activities at OPTIMA College!