big data in retail

Data wins: how information changes retail

June 9, 20200

Information about customers, known as “big data”, is already changing the world of retail – both on the Internet and in our usual stores. Although the case is higher when the seller “finds out” about pregnancy before relatives, it may seem a little shocking, and buyers and retailers in the future can only benefit from this situation. In the end, no one canceled the pleasant emotions from personalized discounts and offers. But how exactly do you use the power of big data in your business strategy?

Retail gets ready

Information about customers, known as “big data”, is already changing the world of retail – both on the Internet and in our usual stores. Although the case is higher when the seller “finds out” about pregnancy before relatives, it may seem a little shocking, and buyers and retailers in the future can only benefit from this situation. In the end, no one canceled the pleasant emotions from personalized discounts and offers. But how exactly do you use the power of big data in your business strategy?

World of Big Data

The Big Date consists of vast amounts of data that are too large to be processed by traditional methods. Why process them, you may ask? They allow us to identify patterns and trends concerning customer behavior. And this information is precious for any retailer. The first to understand the value of big data were the giants of the market – the same Amazon. Thanks to multimillion-dollar budgets for the collection and analysis of information, it was they who received significant advantages over competitors.

Big Date Examples

Consumer behavior

The more data a company can collect about its customers, the better. As marketing and promotions are becoming more complex and personalized, “feeling” your consumer also needs to be more accurate. Big data just helps companies determine who deserves increased attention, what products customers need, how to advertise them, etc. All this reduces the cost of acquiring consumers, and also increases their level of retention and personalizes customer experience. As a result, business increases revenue, plus maintains its positive image.

Forecasting

A huge amount of processed data allows retailers to accurately predict the best prices and plan sales. Moreover, modern advanced algorithms for analyzing big data have become so fast that they allow you to change pricing strategies almost instantly, in accordance with market changes.

Omnichannel marketing

Retailers can no longer be limited to television or the press to reach their target audience. Today’s advertising “catches up” us simultaneously on all channels, on all platforms and devices. Thanks to the “big data” data on the effectiveness of these advertising campaigns turned into a weapon of the marketer. With large customer experience data across platforms, retailers can create multi-channel communication strategies and are more likely to retain their customer base.

Pricing

As already mentioned, big data allows retailers to respond faster and more accurately to any market change. This also applies to price. With historical and current price data, “big data” can be used to determine the best market price here and now. In addition, this approach to pricing allows retailers to avoid constant price reductions in an attempt to remain competitive.

At the same time, work with big data takes into account even those factors that are usually ignored in the process of traditional pricing. Analyzing complex – and not always explicit! – the relationship between sales and products, with big data, you can even price individual products by comparing them with your entire assortment. This helps to avoid price dilemmas, like price cannibalization or the halo effect (buying similar products based on a general impression of something).

Big data gets bigger.

Big Date is already modifying retail, both from the point of view of the buyer and seller. With the increasing amount of data available from retailers, companies will find more and more ways to use it. Thus, big data, as well as pricing tools that allow you to operate with it, may well be one of the most relevant retail topics for many years to come.