Correctly using data is key to retail success
Big data is a term that is everywhere these days – it has permeated a variety of sectors, and the retail industry is no exception. Other organizations may deal with various data points pertaining to their individual operations, and retailers must focus on the information that is pertinent to their processes. This includes data about inventory, revenues, market changes, and, perhaps most important, customers. Information about shoppers is one of the most vital elements for merchants, as it gives them a better view into what kinds of consumers are interested in their products and services. The other data points are beneficial as well, because without them retailers would not know which aspects of their operations are performing optimally and which ones need improvement.
Retailers shouldn't be scared of big data
When merchants hear the word 'big data,' some may think the process of collecting, storing and analyzing the information is overwhelming and time-consuming. However, with the right solutions such as retail management software, businesses can gather a plethora of valuable details from all of their procedures, including point of sale, inventory processing and marketing strategies, to name a few.
ZDNet explored several myths that surround big data within retail, and the source found that any concerns over the term can be dispelled with some understanding. The source explained that one element that companies may be worried about is the 'big' part of big data – mainly how only larger organizations should deal with this aspect. However, the provider noted that the size is not the issue, and instead merchants should focus on gathering and analyzing the information they have at hand and ignore the 'big' factor.
Additionally, many companies look at big data and business intelligence and the correlation between the two. The source asserted that although the two are not significantly related now, they will be in the near future and merchants should prepare for that reality. This means that retailers' abilities to collect and study their data points will soon have an impact on their business intelligence.
Ecommerce relies on big data
Besides providing more insight into operations, big data also gives retailers the opportunity to improve their sales processes, both in stores and online. For example, Experian QAS wrote that many merchants have made significant enhancements to their ecommerce methods through the use of big data. This has been done through increased personalization, better mobile strategies and even fraud detection, the source noted.
