5 Ways of Using Analytics in Food and Beverage

In today’s world, data analytics is becoming increasingly important for businesses across all industries to make informed decisions. Food and beverage businesses, in particular, can benefit greatly from data to improve their decision-making process.

Effective decision-making processes are essential to the success of many organisations, as they help improve market position and maximise revenue potential.

However, decision-making has become more complex in recent years, with 65% of decisions being more complex than they were two years ago according to a survey by Gartner. Mostly due to a lack of fresh and reliable data.

Therefore, we have identified 5 main ways Food and Beverage businesses can improve decision-making with data analytics.

5 Ways Food & Beverage Businesses Can Use Analytics for Better Decisions:

1. Understanding Customer Preferences
2. Streamlining Production Tracking
3. Develop Energy Management
4. Optimising Pricing Strategies
5. Predictive Analytics

Understanding Customer Preferences.

5 Ways of Using Analytics in Food and Beverage.

One of the most significant advantages of data analytics in food and beverage is that it helps businesses understand customer preferences.

In fact, understanding customers is key to sustainable growth. For food and beverage companies, this means gathering information on the types of food and drinks customers prefer, how often they order products, and what they are willing to pay for them.

Data analytics can help food and drinks businesses collect this information through evolving customer behaviour, customer surveys, and point-of-sale data analysis.

For instance, a food and beverage business can analyse the top 10 trending products that have been selling well recently. The data is compared to the previous 13-month period to ensure that it’s an actual item in demand.

This can help the business gain insights into what customers prefer and what they don’t like. Moreover, with this data, businesses can improve their existing list of items, consider creating new products that meet customer preferences and ultimately increase customer satisfaction.

Another way data analytics helps food and beverage businesses understand customers is by identifying those who are no longer purchasing as much as they have been over the past 13 weeks.

This can indicate when someone is ready to replace you as a provider. Moreover, it highlights which type of product your customer is purchasing less and which item they are most interested in.

Find out more in our blog post – BI in Food and Beverage Industry in 2023

Streamlining Production Tracking.

5 Ways of Using Analytics in Food and Beverage.

Another way that data analytics can benefit food and beverage businesses is by streamlining production tracking. By analysing product stage data, businesses can identify inefficiencies in internal processes and areas for improvement.

For example, data analytics can reveal the current stage of orders, the number of items ready for delivery, and which department holds orders the longest. Armed with this information, businesses can make informed decisions regarding staffing, inventory, and delivery timing.

Our order tracking system allows you to monitor each stage of the approval process with ease. Whether you need to check outstanding customer orders or locate a specific product, our system provides real-time updates to keep you informed. You can quickly access the details of any order to see its status, whether it’s in the hands of our customer service team or already prepared for delivery.

This level of transparency ensures that you always have a clear understanding of your customer order status, allowing you to make informed decisions and take action as needed.

Develop Energy Management.

5 Ways of Using Analytics in Food and Beverage.

Data analytics can help food and beverage businesses identify which products are frequently ordered at certain times of the day, allowing them to adjust staffing levels to meet demand.

Imagine having a dashboard with clear insights into the number of orders by date. Although this data might not be valuable for some, when in fact, with this data, you can gain a much deeper understanding of when and where energy is being consumed.

By tracking your energy usage across multiple days, you can determine when it is most beneficial to reduce energy consumption.

Use it to reduce unnecessary spending on days when you receive fewer orders, gain a better understanding of your energy usage, and create more efficient and effective energy management strategies for your food and beverage business.

Check this blog post about ways to Save Money with Sustainability in Food and Beverage in 2023.

Optimising Pricing Strategies.

5 Ways of Using Analytics in Food and Beverage.

Prices increased in an unprecedented manner last year and will continue to rise in 2023. We can see various items are affected drastically in the past few months. For example, low-fat milk grew by 42.1% and flour and other cereals by 29.6%.

Therefore, staying ahead of competitors is essential in today’s market if you want to be successful. Pricing is one of the critical factors for food and beverage businesses, and with data analytics, companies can analyse pricing data and optimise their strategies.

With the help of the latest technology, it’s easy to identify promotional opportunities for all products in just a few moments.

By analysing pricing data, businesses can identify their most profitable items and adjust their pricing strategies accordingly. They can also analyse data on the most effective promotions and adjust their marketing strategies to maximise return on investment. Automating this process can save time and money while helping to gain a competitive edge.

Our pricing tool can help you get the most out of your promotional opportunities by offering the best price to your customers, keeping up with the ever-changing market, and enhancing customer retention and turnover, meaning more success for your business.

Predictive Analytics.

5 Ways of Using Analytics in Food and Beverage.

Data analytics can assist food and beverage businesses in predicting future trends. By analysing historical data, predictive analytics can identify patterns and trends that predict future behaviour.

For instance, businesses can use predictive analytics to forecast future inflation rates, adjust pricing strategies, and optimise production processes.

Moreover, predictive analytics can help businesses in recognising emerging trends and making informed decisions about offerings and promotions. AI can be employed to monitor market conditions and identify potential opportunities or threats.

This allows companies to adjust their strategies accordingly and stay ahead of the competition.

Lastly, data analytics in the food and beverage industry can be utilised to develop predictive models that help businesses anticipate future trends and plan for potential market shifts.

By leveraging AI-powered predictive models, businesses can create strategies that keep them competitive and profitable, even in an ever-changing market.

Check more information on Food and Beverage Trends in 2023.

Conclusion.

Data analytics is a critical tool for food and beverage businesses to improve their decision-making process. Through analysing customer preferences and optimising pricing strategies, as well as using predictive analytics, businesses can make informed decisions that lead to increased profitability and customer satisfaction.

If your food and beverage business is seeking to improve its decision-making process with data analytics, consider partnering with a reputable data analytics provider. With the right tools and expertise, you can transform your data into actionable insights that drive business success.