Big Data in Retail
Big data is a term used to describe a large amount of data which includes both structured and unstructured data. It is so large that traditional data mining and software techniques are not enough to uncover and analyze insights from them.
Today we analyze how different companies are using big data in retail activities.
Growing, cross-channel data volumes
Big data helps the retail industry by analyzing an unprecedented volume of data about consumers and their behavior from sources like mobile phones, tablets, and social media. Now information like social interaction, purchase history, basic demographic data and more can be obtained about the consumer. With the increase in technology, it will get easier and easier for retailers to gather useful information for their sales and marketing.
Increasing investment in technology
Storage now is really cheap. Technology can be used to have centralized databases and concentrate on data hygiene and analytics. Data processes can be modernized. This is exactly what Macy’s executive, Tomak, did and it led their store sales to increase by 10%. Maintaining and keeping data updated enables retailers to gain insights on consumer behavior like never before.
Solving the omnichannel puzzle with data
How customers are researching and buying products across all channels, whether online or offline, must be understood. When collecting data, one channel must not be ignored for another. Insights from online shopping, in-store, and other channels can help improve marketing strategy.
An increase in sales can be logically expected if retailers adjust marketing and sales techniques according to the life events and preferences of the consumers. Big data can be analyzed to obtain the required information and understand consumers.
Segmenting the most valuable customers
Acquiring new customers is costly. It’s easier to keep present customers happy. Big data enables retailers to identify their most valuable or VIP customers. More relevant and specific offers can be made to individual customers thereby increasing sales.