Big data is getting a lot of interest from retail marketers these days. Retailers are looking for new ways to get more and more data for improving the marketing efforts into the business.
Now, being a part of the retail industry, you have to understand how to effectively utilize the advantages of big data to get better results for your business. The total amount of data keeps growing in the retail industry every day. This data can be used for gaining more insights into consumer behavior and improving the level of conversions.
In this blog, we will seek the advantages of Big Data Analytics in Retail Industry:
The following image will show a few goals for using big data in the retail industry and how the goals are wrongly set in most cases.
Hence, it is important to set the correct goal before investing in big data. However, before that, let us focus on the advantages of big data first.
Advantages of Big Data Analytics
Easy and Cheaper Storage facility
Big data is becoming easier to store, with storage space becoming cheaper by the day. Now you can invest in big data storage on a large scale. Managing the data effectively and making it useful for analytics is the core focus for retailers at this point.
The spending on business intelligence/infrastructure and Big Data software development is going to grow, going forward.
Data available from every device
The increasing number of devices such as mobile phones and tablets have increased the amount of data that is being created. Every level of customer interaction is recorded in big data for retail.
The purchase history of each and every customer can be observed and this can be analyzed to understand what all he prefers to purchase and when. The volume of data is very large and this has to be segregated to be made more useful.
Improved Level of Personalization
Understanding the exact preferences of the consumer is now possible with big data solutions. The return on investment shoots up considerably with increased personalization for the consumer. Since consumers are interested in offers and discounts, they do not find it a problem to share their personal details. Analytics can now be done on a real-time basis the best-suited offers can be provided to the customer, based on business intelligence.
Read Related Blog: 10 Effective Use of Big Data and Analytics for Business Ventures
Finding the most profitable customers is one of the most challenging aspects of retail. Making sure that the most important customers are given the kind of attention they deserve is a must. This is one of the major advantages of big data that it enables you to make proper customer segmentation in place so that you can provide the relevant offers to those customers.
Right people, right time
Big data needs to be used effectively to reach the right set of people with the right messaging. Big data makes use of very specific audiences to bring out the best conversion rate for a retail business.
Many retail marketers fail to bring out the right results for the business because of a lack of understanding of how to make the data usable and how to analyze it. Technology has to be fully prepared and used for big data usage and integration.
The Internet Of Things & big data
One of the most popular and recent trends in big data that is helping the retail industry, driving consumer engagement, is the Internet of Things. The IoT devices can be easily connected with the in-data systems to generate data about consumer behavior and actions. The IoT technology has been a boon for retail in making it easier to gather customer data.
Also Read: Big Data VS Business Intelligence: Must Watch Differences Between The Two Platforms [Infographic]
Provides Targeted Communication To Customers
Personalized marketing is 20% more effective than traditional with the arrival of Big Data Services. Data analysis helps companies track the buying process and capture past purchases of customers, which they use for targeting them with personalized communication.
A lot has changed in retail since manufacturers started using data to make their products better tailored towards specific demographics or needs; now, it’s not uncommon at all that marketers will crack open your credit card history before jumping into an online checkout flow!
Predicts Demand and Managing Inventory
Data analytics and Big Data development enable retail companies to understand the customers’ buying needs and focus on areas that have high demand. The conclusion derived from data has helped many retailers. They get a better sense of what their target audience wants, so they can strategically plan out inventory levels accordingly — keeping themselves ahead in this fast-paced industry.
Optimizes The Price
The retailer Stage discovered that the price of a product is gradually reduced after demand has subsided. Ultimately, this increases the amount people buy. However, it was noticed to be more effective if you don’t bring down your prices at all during off-season periods or timeframes.
This is where there are not many fluctuations in consumption rates due to them being less popular items — instead of waiting until they get scarce before deciding how much lower can go. Walmart offers the world’s largest private cloud network to track millions of transactions in real-time on a daily basis.
If you want to leverage the perks of all of this booming trend, you can embrace Big Data development services in upcoming years. However, it is admissible to embrace it as soon as possible to gain competitive advantages.
Enhances Customer Experience
Data analytics help retailers in analyzing how customers shop and use this data to produce a seamless customer experience. From choosing the product, updating account details like shipping address or payment method, all these tasks become easier with Data Analytics at hand.
A lot of companies nowadays make it easy for their clients through convenience features. This is included within each platform they provide access to such as online order processing where you can select from available options before buying.
Moreover, you can buy without even having to enter any personal information besides what’s already there originally plus if needed just check out quickly by providing some basic info about yourself (like Order ID).
This process saves both time and effort on entering new data over again. It could otherwise be allocated elsewhere during busy work schedules.
Retaining customers is not an easy task. It requires constant attention and focuses on what will keep them interested in your brand. It requires how you can engage with their needs or interests long-term. In this way, they become loyal patrons of yours instead of someone who spends time elsewhere doing business (sleepless nights).
Data analysis helps identify those people who are disengaged by identifying patterns. An example of this includes frequent buying habits. These insights give retailers insight into introducing offers that may interest the customer to make purchases again, while also retaining current ones.
The bottom line:
Big data not only helps you to understand your customers but also generates real revenue from the analysis. Thorough research with big data can bring the wow factor for your customers that you have been seeking for a long time.
Hence, now you know the advantages of big data analytics in the retail industry. However, it is not easy to manage such a large amount of data. You might need dedicated Hadoop developers from a reputed company. ValueCoders can help you that with the following advantages.