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Three Quick Questions on Advanced Analytics: Influencing Customers at Point of Decision

By September 10, 2012 No Comments

Retailers and quick service restaurants (QSR) are looking to use Big Data to create new business opportunities and increase sales. Advanced analytics allows companies to tap complex data resources to create more effective digital communications programs. Digital Signage Spot spoke with Scala’s Dave Palermo to hear how advanced analytics and digital signage are working together.

Can you share with us a quick overview on what is advanced analytics?

New analytics tools, such as neural networks, can identify non-linear patterns in data – seeing what is not obvious or even intuitive – to find relationships between data points to give users the competitive edge they are seeking. The technology no longer requires a Ph.D. in statistics to understand and use. It has become a business-oriented tool that is easy to manage through a web browser.

For retailers and QSRs, advanced analytics can transform volumes of data into actionable intelligence. It is driving the next wave in digital signage – helping companies develop a better understanding of the customer and gain insights into customer buying patterns.

How do advanced analytics and digital signage work together?

Working together, advanced analytics and digital signage create a new sales dynamic where retailers and QSRs sculpt a targeted and persuasive consumer experience that influences purchasing decisions.

Advanced analytics allows you to dig deep into both internal data, such as customer purchase history, and external factors, including weather and economic conditions, to understand consumer preference and anticipate demand. The system applies what it learns to your strategy which basically has one of two goals – either maximize, such as increase unit sales, or minimize, such as decrease product spoilage.

From there, you have a data-driven digital communications program where digital signage generates and automatically displays the right message at the right location at the right time. It’s all about personalization, allowing you to command a customer’s attention and sway behavior at the point of decision in the purchasing process.

What should retailers and quick service restaurants look for in digital signage software to take full advantage of advanced analytics?

The software needs to allow you to bring to life a rich content strategy. One, where you can employ single or multiple frames on a display and enables vibrant, creative content. It needs to support granular scheduling – down to individual store locations in a network and by day-parts within locations.

Digital signage software also needs to integrate easily with point-of-sale system data. This enables you to measure how your advanced analytics program is working towards desired business goals. It also provides the feedback needed for continuous improvement in the analytics program.

Lastly, be sure your software integrates with other marketing channel content and data. Digital communications needs to fit within overall marketing programs, including advertising, coupon, interactive and in-store campaigns. Having everything working in concert is essential to achieving the outcomes you want at the point of decision.