DTC News and Insights

How to Use Data Analytics in Retail Industry Decisions to Drive Revenue

Written by The Charm Team | Sep 22, 2025 7:21:23 PM

Traditional retailers often miss the mark because they aren’t keeping pace with how consumers actually shop. As more buyers flock to emerging direct-to-consumer (DTC) brands, it’s clear that retailers risk falling behind if they don’t rethink their merchandising strategies. 

The importance of using data analytics in retail industry decisions cannot be overstated. From tracking sales patterns to predicting inventory needs, retailers must rely on data to guide nearly every business decision. The right analytics turn guesswork into strategy and help retailers stay competitive in a fast-moving market.

 

Using Retail Data Analytics to Reconnect With Shoppers

Many retailers are out of touch with how consumers shop today. Shoppers are moving to direct-to-consumer (DTC) brands that respond faster to demand. Retailers who do not adjust risk falling behind. Success now depends on acting on real data and consumer signals instead of relying on guesswork.

Identify Successful DTC Brands and Form Partnerships

DTC brands attract shoppers because they launch products quickly and connect directly with their audiences. Retailers should treat these brands as potential partners. Adding proven DTC products to a store can boost sales and keep assortments relevant.

Data helps retailers decide which brands to work with. Platforms like Charm provide visibility into which DTC brands are growing and which products are driving sales. This makes it easier to choose the right partners instead of chasing unproven names. You can see Charm’s free guides into the top DTC brands for health retailers, beauty retailers, sporting goods retailers, apparel retailers, and camping and hiking retailers. 

 

Track Social Trends That Drive Sales

Consumer demand often starts with social media. Products can move from unknown to best seller within days after going viral. Retailers need to track these shifts closely.

TikTok is a key driver of this behavior. Viral hashtags and creator-driven content often signal where revenue is heading. Retailers should focus on the trends that create real sales, not just online attention.

When we look at #hairtok, for example, we can see they've generated over $29 million in U.S. TikTok Shop beauty sales from January to August 2025. We also know that Wavytalk and Tymo products are seeing significant revenue from the trend. Beauty retailers should be tracking relevant trends in their category to see where they could add products to their portfolio that are already driving sales on TikTok Shop.

Match Catalogs With Top-Selling Products

Shoppers buy what is relevant right now. Retailers cannot rely only on seasonal resets or long-term forecasts. They must align catalogs with current demand.

Seeing the trend in hair tools as a result of the #hairtok trend may signal to beauty retailers that they should provide similar hair tools at their stores.

TikTok Shop data shows which products are leading sales, and top videos can shed light on the key selling points resonating with consumers. Retailers can use this information to stock fast sellers or partner with brands selling those top products. Charm makes it possible to act on these signals quickly and avoid wasted inventory.

 

Data Connects Retailers Back to Consumers

Retailers often lose ground because they rely on outdated reports or instinct. Real-time data gives them the clarity to see what shoppers want at this moment.

By using data to choose DTC partners, follow sales-driving trends, and update assortments with current best sellers, retailers can close the gap. Charm helps turn data into actions that keep retailers aligned with consumers.

Charm gives retailers that clarity. With live analytics, you gain the power to act, not just observe. Whether you're adjusting your assortment, partnering with new brands, or jumping on a trend, data is what keeps every move sharp and relevant.

Book a demo with Charm.io today and see how better retail decisions start with better data.