In a D2C business, using data for analytics and BI provides valuable insight which in turn, fuels growth.
Implementing a data analytics infrastructure with a data warehouse and BI tool enables you to create a single source of truth. By combining all of your data sets you’ll see the full picture of your business. Use this data to answer business questions and build dashboards and reports.
In D2C businesses, data analytics is used to draw insight on CAC, LTV, reach optimization, ROAS, ROI of discounting and much more. Understanding sales and customer data then taking action from it fuels growth. But data analytics doesn’t just allow you to analyze your customer. You can also utilize the data to analyze your operations – better understanding the impact of each sale or subscription on the business.
Impact of data analytics for D2C
Full understanding of business
Siloed data prevents a true understanding of your business – data needs context to make it relevant. As a result, D2C businesses which implement an analytics infrastructure can make adjustments to processes and workflows almost in real time. In turn, they can detect issues, react quickly and increase profitability and reduce waste.
Supply chain visibility
Pulling your ERP data into your data warehouse allows you to see the full lifecycle of your product alongside your sales, finance and customer data – making it far more impactful. As a result, you can use the important data provided by your ERP for forecasting, analysis and reporting.
Managing stock is vital for a D2C business, particularly one which has limited storage space. Many products spoil when kept in storage for too long, so it is important to accurately manage stock. Data analytics helps businesses understand purchasing patterns to ensure enough stock is available to meet demand and prevent waste.
Predictive analytics & forecasting
By bringing together all of your data and building a historical record, you can uncover trends and patterns. With this insight you can make predictions around demand patterns. For example, anticipating slow and busy periods or potential future supply shortage. Use this information and act accordingly – adjusting the marketing strategy or discounting certain products to increase conversion.
Proactive data driven decision making
With data analytics, adjustments can be made to operations based on daily data, rather than waiting for a quarterly or annual review. This greatly speeds up the time to action and ensures proactive operations decision making, driven by live and recent data.
Implementing data analytics for D2C
Kleene makes implementing a data analytics infrastructure easy – with automated data pipelines, insight is available at your fingertips.
Want to see it in action? Get in touch to book a demo and see how Kleene can help.