Businesses have always been impacted by the climate and, more specifically, the variability of weather conditions that materialize from it. This never-ending volatility makes planning challenging and adds complexity to operations, especially for retailers and consumer-based businesses as the weather affects the daily activities and purchasing decisions.
Currently, the climate is changing at a faster pace than at any other point in human history and recent years have produced record-warm global temperatures and a growing frequency of extreme weather events. Consider the following callouts from the U.S. as examples:
Climate change and weather volatility are making it more difficult for companies to stay a step ahead of consumer demand. In fact, retail-based businesses often point to the weather when reporting earnings and discussing performance results. And, while the impacts of climate are readily acknowledged, the opportunities and risks created by weather-related sales volatility remain the least understood, the least measured, and the least acted upon external factors affecting retailers.
With the right analytics, companies can control how the climate and weather affects their business.
Incorporating weather impact demand analytics represents an unmatched and untapped opportunity for companies to better understand and engage their customers, capture additional sales, and enhance profits. The rapid emergence of advanced analytics and forecasting technologies, including artificial intelligence (AI) and machine learning (ML) capabilities ,operationalizing weather analytics across the business has never been more attainable.
Areas in which companies leverage Planalytics’ weather-driven demand analytics are include:
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