How Retailers Are Achieving Real-Time Decision Making in a COVID-19 World

The COVID-19 pandemic, and resulting store closures, drastically changed how retailers operate and interact with shoppers. Now, social distancing and phased re-openings around the globe are having continual impacts on consumer behavior.

To navigate the ongoing upheaval, retailers need to supplement historical data with fresh insights, allowing them to better strategize with near real-time decision support to match the change and pace of the current landscape. A strategy based on real-time decision making aids retailers in leveraging in-the-moment data to stay agile while more accurately anticipating and reacting to market uncertainty.

Decision Making in Real Time Starts With the Common Operational Picture

For retailers to implement a real-time decision making strategy, all parties involved need a full, yet easily digestible view of current and historic data — i.e., a common operational picture (COP). Whatever the current climate, having a complete COP allows stakeholders to more easily view and understand data, leading to more seamless communication and decision making.

With social distancing and strict reopening regulations in place, retailers require insight into even more metrics than before. Specifically, things like stock availability and location helps limit the number of trips customers make to stores, as well as the duration of those trips. Additionally, retailers are hyperfocused on customer experience and loyalty, particularly as it relates to new sanitary and safety regulations. All of this relies on a solid COP and real-time decision making as part of daily processes and operations.

Real-Time Decision Making Use Cases for the Retail Industry

Affordable, ready-to-wear global apparel company Kiabi was struggling to understand which marketing programs were performing, keeping it from making changes or new decisions about what to offer.

To combat this, Kiabi implemented a real-time decision making strategy leveraging both historical and new data simultaneously to dynamically price and promote its clothing while also building out a customer loyalty program. The company was able to provide customers better experiences and offers, regardless of whether they were shopping in-store or online. As a result, Kiabi saw a 200X increase in performance, allowing the retailer to meet the fast-paced demands of its business.

Leroy Merlin, an international home improvement and gardening retailer, wanted to advance its decision-making skills in locations across Asia, Europe, Latin American, and Africa. However, it lacked timely and accurate product information to compare stock across locations. Working with several external parties, including vendors, contractors and customers, Leroy Merlin needed to increase business agility and deliver customer satisfaction.

By maximizing real-time decision making within its inventory strategy, store managers were better supported in determining which items were selling vs. not. This resulted in managers being able to efficiently move stock between stores. Additionally, Leroy Merlin can now more accurately share product availability and delivery times with contractors and customers.

The ability to effectively iterate and make decisions in the moment is paramount as the effects of the pandemic continue to be felt. Especially in periods of market uncertainty, retailers can use a real-time decision making strategy to remain flexible and agile, moving beyond simple survival mode to more proactively tackling new problems and challenges.

Lewis Carr is the senior director, product marketing and management, Actian, a computer software company with primary focus on hybrid data management, integration, and analytics.