Today’s omnichannel shopper has numerous options when it comes to making a purchase. From mobile shopping to social media to buying from local retailers, their choices are practically limitless, and their buying behavior reflects that. Shoppers demand a seamless shopping experience, and thankfully, retailers can provide that by using Big Data analytics.
Data collection, careful data analysis, and making adjustments based on feedback are a few of the tools retailers are armed with to leverage on Big Data. Through it, savvy retailers can increase sales while promoting the kind of loyalty that turns casual customers into brand ambassadors.
Here’s how Big Data can help retailers make the most of the holiday rush.
1. Anticipate requirements in the supply chain
Gone are the days when retailers rely purely on historical data to anticipate demand during the holiday season. Big data analytics allows retailers to analyze the full length of the supply chain and have a clearer picture of buying behavior based on customer’s buying patterns.
This is done by gathering large amount of data distilled from various sources – online sites, social media, and mobile apps – and using it to decide what products will fly off the shelves faster, and which ones will have a lower demand compared to the others in the inventory.
By anticipating buying behavior, retails reduce waste by knowing which ones to add more of in their inventory. They can also keep up with large volumes of orders for popular items without fear of being out of stock.
2. Enable personalised communication to improve ROI
Data gathering has become a cost-effective process thanks to apps and the latest technological advancements. Big Data tools allow retailers to not only capture and store data, but more importantly, use it to create personalized and highly targeted campaigns to suit specific buyers based on their buying behavior. By analyzing consumer interactions and online activity with an online shopper, retailers can respond appropriately to buyer needs and tailor their messages to their audiences.
This has obvious benefits to the consumer, who are recipients of personalized treatment that they most likely desire, but it also has enormous benefits for retailers in terms of return on investment. The Harvard Business Review states that personalized service has the capacity to deliver up to 8 times the ROI on the cost of marketing, and increase sales by more than 10% in most cases.
3. Automating real-time pricing adjustments to encourage more purchases
Shoppers can easily compare and contrast prices with a click of a mouse button or through their mobile devices. The latest Big Data analytics and technology has the capacity to oversee and monitor these price fluctuations, and adjust accordingly. The goal is to increase the chances of a casual browser to make a purchase. With the most updated technology, this can be done through computer algorithms that can automatically calculate and implement price changes online.
As shoppers continue to move back and forth b5etween brick and mortar stores and e-commerce sites, retailers have come to rely on Big Data to inform their next campaigns and marketing promotions. Take note of the strategies that are outlined above, and implement them in your next campaigns to increase your chances of long-term business success and customer loyalty that will continue to flourish even after the holiday season.