Compiling and implementing strong data practices to analyze can certainly help to improve strategic decision-making and mitigate risk. It could also help to optimize customer experience and increase process efficiencies across the board. However, while there are certainly many benefits to having data, data does not give you the insights or answers to make quality business decisions. Weather data is one source that many companies use, but struggle to understand. This is why weather analytics is more effective to use when evaluating business weather impacts.
The Problem with Collecting Quality Data
Translating weather data is difficult enough for any organization. What do you do with all of that data? Many organizations throw tons of weather data at their employees when weather “hurts” the business. But weather data doesn’t provide the answers or insights to how weather is impacting your business.
How Weather Analytics Can Help You Connect the Dots
This is where accurate climate analytics comes in. Trying to do it on your own can be costly, take away from other strategic initiatives, and could create incorrect decision-making based off inaccurate analysis. What do we mean when we talk about weather analytics to solve this problem? It is a multi-disciplinary, multi-faceted approach that takes into account all of the factors that drive changes in customer behavior due to the weather. Leading weather analytics providers analyze a company’s history sales data along with historical weather data to identify the weather drivers specific to their business. Weather is notoriously volatile as it only repeats itself year-to-year about 15-20% of the time. Business Weather Intelligence from Planalytics can help organizations bridge the gaps of knowledge to achieve a better understanding of how the weather really affects sales.
Therefore, many companies might find it beneficial to enlist Planalytics to help them gain a better understanding of how weather is driving their business sales. Getting clean weather data is difficult enough; knowing what to do with it is a whole other matter altogether. When companies measure weather’s impact and create a weather-adjusted baseline for planning, retailers improve forecast accuracy and typically recapture 20-100 basis points of profit through inventory optimization improvements alone.