Retailers can use big data to establish relationships, build loyalty
When hearing the term "big data," one may think of large databases filling a room or complicated processes required to access information. But that's not the case anymore as big data has made its way into nearly every business sector, including the retail industry. Merchants are now taking advantage of big data to gain more insight into their operations by exploring aspects like their inventory procedures, financial statements and point of sale processes.
But another element in which retailers can obtain more valuable information through big data is their customer management strategies. Every day, companies gather a variety of details relating to their shoppers, whether it's product preferences, past purchases and their favorite communication channels, among others. By looking deeper into big data and knowing what it can do for their customer programs, brands can establish more meaningful and personal relationships with consumers, helping to build loyalty and drive repeat sales.
Big data can go personal
Taking advantage of every interaction point with customers is one way in which merchants can collect information that can be used to improve their operations. Wired.com offered several methods for retailers that want to utilize big data to foster more successful relationships with patrons, both in stores and online.
First, the source suggested that brands should not assume that they always know what their shoppers want and need. The only way that companies can truly know what their customers are looking for is to gather and analyze information, the put that data to good use. Second, businesses shouldn't be focused on gathering all of the data that they can; instead, they should collect quality information that can give them the tools needed to boost loyalty.
The source also noted that being flexible and agile is key to building solid customer relationships. Consumer demands are constantly changing, and brands need to be able to change with them. Fortunately, big data gives merchants the information they need to address and implement these shifts in customers' wants and needs, the source detailed.
Other uses for big data
Besides customer management practices, big data technology also provides retailers with the ability to gain more insight into a variety of their daily processes. Business Insider Australia highlighted some of the aspects that can be enhanced with big data. One of these includes information about how brands can engage their staff members and ensure in-store customers are able to easily find associates to answer questions. Another big data element is that it can highlight merchants' weaknesses and strengths, giving them the chance to make their operations more successful.
