Adventure of Big Data Analytics in Retail
Retailers are getting wiser, and many owe their ascension up the knowledge tree to the information explosion. They know more about the consumer than ever. Where they live. What they’ve purchased in the past. What they’re likely to buy if they see it in the future. Don’t be alarmed. It’s not necessarily a privacy breach at hand. It’s the fact that more businesses have hitched on to the big data bandwagon.
From historical sales data to social media feedback, retailers are using a wide variety of data sets to customize messaging, products, and experiences that customers will respond to. When you can deliver on what the customer wants, you’re obviously going to do better than the rival feeling their way around in the guessing game. However, when you have capabilities that allow you to take those actions in real-time, you’re right on the cusps of continual greatness. The possibilities are endless when incorporating big data analytics into your retail strategy.
Relevant Retail Targeting
The emergence of social media represents prime opportunities for retailers, and big data analytics affords them the opportunity to take full advantage. For example, based on the responses to a social media post, it’s possible to identify just who’s in the market for a new a computer, and who’s planning a trip the Bahamas. So when they’re ready to rev up their marketing campaign, a travel agent can send deals about vacation packages to the Bahamas via email. When that social media user steps into the computer store, they may be encouraged to buy a PC tailored around the interests they expressed.
Mobile Targeting Innovation
As far as targeting mobile consumers goes, it’s fair to say that we haven’t seen anything yet. By tapping into these gadgets people can’t seem to live without, it’s possible for retailers to target consumers with ultra-relevant offerings right on the spot using data and technology like iBeacon. Developed by Apple, iBeacon uses Bluetooth Low Energy (BLE) to help stores identify patrons as soon as they enter the building and send relevant offers right to their smartphones. Soon, retailers will be able to incorporate dynamic functionality that changes offers based on the consumer’s position in the store. Pretty slick.
Value Beyond Sales
What many retailers are discovering is that big data analytics is much more than a conversion tool and revenue generator. It also arms companies with powerful insights they can keep on deck and call upon when the right moment arises. Let’s say you run a local grocery store. If your data tells you that a particular brand of onion dip is selling well with your most popular potato chips, you can tweak your shelving situation so the two items are closer together and the customer has an easier time finding them. Just an example of how analytics can improve the retail experience beyond sales.
Big data analytics is revolutionizing the retail sector both on and offline. Several companies in this vertical are challenged with information in the volume, variety, and velocity that constitutes what the trend is all about. Retailers using the tools that allow them to manage it and take advantage are poised to enjoy the biggest competitive edge.