Customers who buy in multiple channels (e.g., retail and online) are worth more than single channel customers, according to The Nielsen Company. By analyzing only marketing data (e.g., email and website visit statistics), a brick and mortar retailer’s marketing team will not be able to understand how to drive multi-channel purchases so as to maximize revenue and profitability. Using only their own data, marketing will not be able to answer such basic questions as:
- What is the optimal mix of online and retail store sales that provide the company with the greatest revenue and profitability?
- Which marketing programs most cost-effectively drive customers into stores?
- After purchasing, do store customers visit the website for add-on purchases? Which programs best incent them to visit the site and purchase?
Marketing Data Only
For example, through using website and email analytics a company may find that low price products are easiest to promote on the website and generate the most completed orders. So the web marketing team is enthusiastic about promoting low cost online deals and petitions the VP of Marketing for more investment along these lines.
Store Data Added In
However, when looking at a more comprehensive picture by adding in Point of Sale (POS) store data, a Business Intelligence system’s dashboards and reports may demonstrate that customers’ desire to purchase seem to be satisfied by buying only the promoted low-cost product online. As a result, customers do not visit a store, where they are more likely also to buy higher-price, higher-margin products. The end result: lower enterprise-wide revenue and profit.
Further, analysis of reports may inform marketing that the company maximizes revenue and profit if marketing promotes higher price items on the site and then uses email marketing to promote online add-on products to customers who made their initial purchase in the store. By looking at the entirety of information available with a business intelligence solution, the VP of Marketing can make smarter decisions about the types of promotions and marketing campaigns that boost enterprise-wide sales and profitability.
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