In this day and age, customers expect personalization more than anything. If they can’t easily make a purchase in a way that they want, they’ll leave for a different retailer. Today’s dynamic retail industry is craving for a new covenant of data-driven retail experience and heightened consumer expectations. Moreover, with the customer-related data growing by leaps and bounds, retailers can collect, curate and analyze this data to make critical decisions. This is exactly why big data analytics in the retail industry is taking center-stage for decision-making and improving the overall efficiency of the whole business process. According to a report by Mordor Intelligence, big data analytics in the retail market was estimated at USD 4.18 billion in 2020 and it is expected to reach USD 13.26 billion by the end of 2026. So, there is no doubt that the retail industry is witnessing a major transformation through the use of advanced analytics and big data technologies. Here is how big data analytics in the retail industry is driving growth and innovation.
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Product pricing is one of the most crucial marketing decisions taken by retailers. Making a wrong move in this section can result in lower sales and customer adoption of replacement products. With the help of big data analytics, retailers can develop sophisticated price models for different products. Retailers can track the hundreds or thousands of transactions every day in their store including inventory levels, competitors, and demand can be tracked and can be responded to automatically. By consistently monitoring and analyzing relevant search words, retailers can forecast trends before they happen and can anticipate an effective dynamic pricing strategy.
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Personalized customer experience:
The success of any retail business is solely based on how happy the customers are and how well they are being treated. Big data analytics in the retail industry provides retailers opportunities to enhance their customer experiences. It provides a 360-degree view of a customer that is as accurate as possible by analyzing and identifying their likes and dislikes, their likelihood of using coupons, gender, location and social media presence, etc. It can help the retailers in anticipating a customer’s demand and therefore would empower them in making effective decisions and thus personalizing their market based on consumer data.
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Enhanced quality of service:
Big data analytics in the retail industry not only helps in the on-line, digital side of the business but also in the in-store quality of service. For example, retailers can make use of data obtained from the video footage and IoT sensors in the store to measure how often customers gravitate towards an area in the store, how much time do they spend in a particular aisle, etc, and strategically place items they want to sell first. Moreover, they can also analyze the customer reviews and comments in the online space and make the necessary changes that the customers would like to see in a store. This way they can improve the overall quality of service as well as the customer experience.
Customer journey analytics:
Customer journeys are the set of interactions a customer has with a brand to accomplish a task. In retail, a customer journey is a zig-zag pattern across different channels from research to purchase from your shop. Understanding and addressing these journeys create real value for companies in driving growth and innovation. Big data analytics is the ultimate tool to handle and analyze the customer journey in the retail industry. It enables the retailers to harness various customer data to directly correlate experience to the next actions. From these actionable insights, retailers can optimize and personalize the experiences to impact behaviour and guide the customer down the journey to the right outcomes.
Smart retailers are now looking up to Big data Analytics in the Retail Industry to have the extra competitive edge over the others. It is helping them to understand the customers better and providing them with the best possible solution, ensuring customer satisfaction, etc. We understand the new retail is predicated on driving data and analytics, connecting customers to your brand, and modernizing operations through technology and digitization and effective supply chains to create a new and unique customer experience. The customers of today are intelligent and tech-savvy and hence innovation through technology to create connected customers is in our DNA. At Intone, we work with some of the world’s largest retail clients in the world to develop and execute strategies that optimize the retail value chain at every level to create connected customer experiences for each and every client. We do this through real-time data analytics, digital CRM, IT integration, and modernization of the IT landscape.