Retail marketers, among many other retail professionals, are getting more and more interested in big data and retail analytics software as they are on a constant look out for better and more effective ways to get more of it. And why wouldn’t they? It’s incredibly powerful, especially in the retail industry.
Since you are a part of this industry, it is important to get familiar with all the advantages big data offers, so that you can utilize them to achieve your specific business goals. The list we have compiled for you contains eight major advantages of using big data and retail analytics software in the retail industry.
Storing copious amounts of data was an expensive endeavor in the past. Today, thanks to all the big achievements in cloud technology and the cloud storage market growth, we can safely say that storing big data has become easier and somewhat cheaper. More importantly, big data management has also become affordable now.
The mobile industry is also growing. More and more people are using their smartphones and tablets, which has increased the amount of data to be stored and used. In any case, retailers can now get insightful and actionable data reports that can really help them optimize their business and foster its sustainable growth. And all this without having to invest heavily in big data analysis.
Price Optimization Models
Real-time pricing optimization was science fiction just a few years ago. Today more and more retailers are using big data to analyse the prices of their competitors, and automate the real-time pricing optimization to stay competitive while still selling products with profit margins that ensure steady revenue and ROI.
How does big data help with these? By tracking the current product demand, your current supply and forecasting trends in customers’ purchasing behaviour, big data can help you optimize your prices. As a result, you will have increased sales, better margins and be able to compete with other retailers.
Improved Level of Personalization
When it comes to using retail data analytics, an improved level of personalization is definitely one of the most impactful advantages. Since we live in a customer-centric era, tending to the specific customer needs is the most efficient, if not the only, way to success. And that is exactly what big data has to offer you.
Analysis of your customer data will enable you to:
l Pinpoint the best communication channels to contact your customers.
l Know At what time do they like and expect to receive your offers.
l Custom-tailor your customers’ shopping experience.
Big data use-case is not only restrained to improvements made to the shopping experience. Retailers are further utilizing the insights to optimize their marketing efforts. Personalized marketing offers perform way better than the generic ones.
Retail Analytics Software Increases Speed of Analysis
Once we have mentioned the real-time price optimization, you might have guessed that analysing big data is a fast process – and it is. Thanks to a retail analytics software, huge data streams generated at very high speeds, can be recorded and analyzed very fast. Because of this, you will be able to get reports generated in real-time.
Consistent Brand Image
Making sure that people perceive your brand exactly as you want them to is a very important task. With so many things going on your official website, social media and forums, it becomes impossible to track what people are saying about your establishment.
Big data can help you with this. By keeping close tabs on sentiment analysis, you will be able to see what your customers are saying, feeling and thinking about your company.
Better Market Understanding
Big data can help you to completely understand the market you are competing in. By tracking supply, demand, prices and customer behaviour, you will be able to make smart decisions. For instance, you can identify the products that are in demand and offer them at a better price. You can also identify and forecast market trends, and prepare your in-shop stock for the customers.
Improved Risk Analysis
Risk analysis is only as good as the amount of data that it encompasses. Simply because there are many factors that determine retail business success. If you fuel your retail analytics software with big data, you will be able to check the financial health of the market, your competitors, suppliers and customers, and adjust your strategies accordingly.
Improved Cross-Selling and Up-Selling
Big data will enable you to learn and understand the nature of each of your customers. By analyzing your customers’ behaviour, market trends and what you have to offer, you will be able to recommend the right products. Big data will help you to implement an effective cross-selling and up-selling strategy.
As you can see, big data has a lot to offer to the retail industry. By helping you understand your customers, get familiar with the market and analyse competition, big data will enable you to reap the benefits of real-time price optimization, customized offers, personalized marketing and consistent brand image over time.