Today, big data is not confined to technology changes but how it is actually connecting your customers to your brand/ company. It is true that the e-commerce boom is putting brick-and-mortar stores in a difficult position to compete but several physical retail store owners are using first-hand technology to enhance their customer experience based on their historic data and accurate data analysis.
A study by IBM shows that retailers have a keen interest in becoming more data-centric in their decision making but their hesitation in execution is still visible. Even though companies are quite new to this paradigm shift, there are several big chain stores being data-efficient and adopting automation in their processes for better customer experience.
What are the benefits for the retailers to be a data-centric company?
1. A holistic view of the market:
Big data provides a holistic view of a company across departments and can provide a better understanding of the changes in the market. For example, Walmart is developing the world’s largest private cloud to track data on inventory, transactions, and competitors, which will help them respond to market changes readily.
2. Understanding the customer needs:
Retail stores like Carrefour, Walmart, and Target are moving towards becoming high-tech by introducing self-checkouts for their customers. Amazon Go’s tagline of “just walk out” created a strong buzz. This encourages customers to walk in the store, just for the experience.
3. Connecting the online and offline stores:
Big data can be used to personalize users’ experiences, both offline and online. It is helping retailers connect their online and offline stores without losing their USP. For instance, Nike created a speed shop with an automated process, where customers can choose the shoes online, reserve and try them in-store.
4. Customized plans catering to customers:
Starbucks became a data-driven company when several of its outlets closed in 2008. Data helped them create personalized promotions, insight-driven products, better menus, optimize machine maintenance, and improve real estate planning. Hence, this resulted in a drastic increase in foot traffic and social media presence.
Today East Asian clothing brands are providing an enriched experience to their retail customers. For instance, Japan and South Korea, use body scanning technology to replace the concept of changing rooms. This is providing its customers with accurate recommendations according to their body type and style.
6. Shift to ecological practices:
Customers are now focusing more on working with companies with environmentally friendly practices. In January 2020, Danone launched projects to promote the reduction of waste in various sectors. Today, 50% of French consumers are ready to adopt a more ecological and ethical mode of consumption, according to the Cetelem/Harris Interactive observatory.
Retail sectors are moving towards data maturity and are developing cutting-edge technologies to be highly competitive and survive the shift towards e-commerce. It is still early for retailers to take the plunge and gain a good market share. How can we use our data to benefit and improve our decision-making? Find out in our recent White paper. >