Big Data Analytics now have a significant impact on Retail, simply because it goes a long way in helping Retailers – big and small – to provide customized shopping experiences to their customers. Gone are the days when personalized shopping was limited only to elite shoppers. With big data and in-store personalization, all retailers out there can pamper shoppers more and make them feel special! In the process, they would help their potential customers to spend a little more when buying from the Retail Store.
It is a wonderful experience if a salesperson understands your customers’ style and preferences, and suggests products accordingly. Then, your customers would buy even more if they had such experiences every time they sauntered into your brick-and-mortar store. Retailers now are all geared-up to embrace big data analytics to personalize the retail environment as well as take it to the next level.
In this post, we are going to discuss how big data revolutionizes your retail space with in-store personalization and creates opportunities galore for all retailers.
Creates a Smart Shopping Experience
With the effective analysis of chunks of data, it opens up new opportunities to gain a comprehensive and deeper understanding of all your customers, thus creating a smarter and personalized shopping experience. With an effective big data analytics platform, you would be able to collate and evaluate consumer information from an array of sources including transaction details, POS systems, social media, loyalty programs, and more. Collecting such information will help retailers:
- Identify shopping behavior and patterns
- Understand customer preferences
- Generate increased customer segmentation
With such new data and insights, retailers can offer highly targeted and location oriented promotions for a customized shopping experience, and that too in real time.
Leveraging Big Data for Maximized In-Store Personalization
Are you still clinging to the age-old practices of attracting customers to your store or already have gone digital to improve the brick-and-mortar store experience? If you embraced digital technology, then there is nothing like it. Try to make the most of out of smartphones, tablets and other handheld devices for store navigation, and help customers by providing personalized information pertaining to your products, product suggestions and mouthwatering deals, discounts or offers, to a customer’s smartphone right away when they are looking for products at your store’s shelves.
You can also make the most out of new data sources such as video feeds of your shoppers who visit your store. This will definitely help in personalizing in-store experiences like labor allocation, placement of your merchandise, identifying and finding the ‘hotspots’ for in-store promotions.
Show rooming can also prove quite effective to increase customer footfall. For instance, automated kiosks, product displays and virtual reality can help a physical retail storeowner to recover those sales that might not have been possible if a buyer was simply shopping online.
Dynamic Optimization of Price
Price determination and sales are long-standing strategies. With the increased popularity of big data and its effectiveness, retailers across the globe are leveraging it to facilitate predictive alerts across the retail demand-supply chain. This is imperative to perform the task of dynamic and effective price optimization in physical stores. This task takes into account several sets of data including:
- Customer preference information
- Inventory information
- Competitive pricing
This exercise is beneficial to both retailers as well as their customers. It helps to promote price adjustments in real time to suit your customer’s budget, and simultaneously helps in boosting sales and improving profit margins.
Predictive Analytics Helps in Tapping Vital Intelligence
Today, retailers can go a long way by embracing predictive analytics to harness the power of vital intelligence contained within loyalty card databases, POS applications, and other similar systems. When it comes to retail demand forecasting, it includes inventory, raw materials, stocks, and so on. So, retailers can benefit from advanced analytics in the following ways:
- Estimate and manage changes in buyers’ needs and their shopping behavior
- Forecasting dynamic market conditions
- Forecasting store traffic
- Number crunching to improve store efficiency
- Lessen possibilities of fraud
- Handling staffing requirements as well as operational aspects
New and Innovative Products
Today, the business environment is extremely competitive and data driven. And, in this scenario, brick-and-mortar retail stores need to continuously innovate to thrive and flourish. Now, how they are going to innovate? Well, retailers are required to come up with a new and innovative product line up. With new products launched, will they satisfy the needs of modern-day customers? This is where the importance of big data analytics comes into play. A great number of physical stores witnessed a doom simply because of the dearth of big data analysis and its effective implementation. Retail storeowners, who are progressive, can leverage big data to come up with innovative and next-generation of merchandises or services that modern-day customers like.
Big Data is overpowering. It is imperative that retailers understand the importance of it. They should also be aware of what their present systems can manage. For data to help in retail personalization and produce effective results, storeowners must embrace technology to help them gain insights and quickly achieve the desired results.