6 big data analytics opportunities in retail
Retail industry has gone through several major changes in the last decade or so. Trends such as the emergence of internet, social media, smartphones and digital marketing. Big data is the latest in the series of new technologies sweeping through the retail landscape. Following are six areas in this space that will see major changes due to big data and analytics.
Identifying the Product MixThe assortment and allocation will need to take into consideration the evolving user trends identified from Big data analytics to ensure the offering matches the market needs. Allocation planning especially has to be tactical with shorter lead times.
Promotions and PricingRetailers have to move from generic pricing strategies to customized user specific--each customer needs to be treated as a segment of one.
Communication with CustomerAdvertising will move from mass media to personalized communication; from one way to two-way communication. Retailers will gain more from viral marketing than from traditional advertising channels.
ComplianceGovernmental regulations and compliance requirements are mandatory to avoid liability as co- mingling data from disparate sources can result in generation of personal data beyond the scope of the original user’s intent. While data is available globally, the use has to comply with local law of the land and ensure it is done keeping in mind customer’s sensibilities.
People, Process and Organizational DynamicsThe move to feedback economy requires different organizational mindset and processes. Decision making will need to be more bottom-up and collaborative. Retailers need to engage customer to ensure the feedback loop is in place. Further, Big data being cross-functional, needs the active participation and coordination between various departments in the organization; hence managing organizational dynamics is the key consideration.
Better Customer ExperienceOrganizations can improve the overall customer experience by providing updates services and thereby eliminating surprises. For instance Big data solutions can be used to pro-actively inform customers of expected shipment delays based on traffic data, climate and other external factors.
- Infosys Research
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