Why does Big Data help Retail?
Massive data, commonly known as Big Data, is a data set that contains a greater variety, in large volumes, moving at higher speeds. Due to its size and characteristics, it cannot be treated in a conventional way, but its use represents a qualitative leap for companies.
How can these "three Vs" benefit the retail sector? Or rather, how can Retail take advantage of massive data? With technological solutions that favour the analysis and understanding of this data, in order to translate it into real value.
Using Big Data efficiently means making use of valuable resources that are already available but often forgotten. Although it sounds simple, many businesses struggle to benefit from their data.
Think you're not making the most of all the information you have? Read on to learn about the benefits of Big Data in retail, the most common types of data, success stories and what tools to use to take your business to the next level.
Benefits of structuring and interpreting Big Data
It is not efficient to have tons of data if you don't do anything with them, but they have a lot of potential because, among other things, they allow you to..:
- Access new business opportunities
- Make more accurate forecasts
- Manage more effective campaigns
- Automate processes
- Gain advantages over competitors
- Earn more revenue
- Generate greater customer satisfaction
In addition, artificial intelligence applied to Big Data has the added value of offering flexibility. That is, the possibility to monitor and supervise campaigns continuously, and therefore to optimise them according to their performance almost immediately.
What data do businesses make use of?
There are different sources of massive data that can be exploited. Those who already use Big Data to optimise their business start from internally collected information and often also receive data from external providers.
It is also important to have historical data as well as real-time data. This, of course, will depend on the needs and capabilities of each company. Some types of data are:
- Digital behavioural data
- Geographic data
- Biometric data, such as physical or behavioural human characteristics
- Transactional data, such as point-of-sale data, among others.
3 sectors already using Big Data
There are currently many industries that use Big Data to increase their profits while seeking to offer a better service or product. We may not realise it but we are in contact with these practices on a daily basis.
One of the reasons why the entertainment industry uses Big Data is to refine the type of content it offers to each of its users and increase views. For example, we can observe it when streaming platforms recommend us the new album of our favourite music group, or series similar to the ones we have already watched.
Thanks to Big Data, the health sector can maximise its impact on society; by accessing medical evidence and visual analysis more quickly, or by identifying pockets of disease spread in time, or patient progress curves that allow for greater planning.
With the right analytics and algorithms, banks and finance companies have the ability to discover patterns and trends more assertively, reducing risk and increasing margins.
How can Retail use Big Data? Examples
Leading companies worldwide demonstrate that in times of high competition, crisis and/or new consumer habits, Big Data is a key differentiating factor.
The make-up corporation, Sephora, provides product seekers in its US shops with real-time offers, events and personalised recommendations.
The supermarket chain uses artificial intelligence applied to data to track its inventory, control transactions, keep ideal stock and improve logistics.
Pantene and The Weather Channel
These brands use Big Data collaboratively to maximise its effects. Pantene and The Weather Channel have achieved an interesting synergy. Based on the Weather Channel's predictions, different retailers promote the hair products that are best suited for each season or specific weather conditions.
Common pitfalls when including Big Data in the business plan
By now we agree that not using big data to power our business runs the risk of leaving us out of date and out of competition. This danger is undoubtedly greater than the difficulties many businesses face when introducing Big Data into their strategy.
Whether you are currently implementing it or it is in your immediate plans, it is clear that no business wants to be left out of this trend. But what are the challenges you may encounter along the way?
- Lack of qualified personnel
- Too few technologies to meet today's challenges
- Use of inadequate tools
- No planning of objectives
- Wrong analysis
At the forefront with Ladorian
Ladorian can help you reduce costs and increase profits through the intelligent use of physical space and the analysis of thousands of indicators. Media such as posters have been used for decades in the industry, but until now they have been narrowly tailored to different target audiences. With our powerful software we can help you to trust your database and to be able to predict buying trends at the point of sale.
Can you imagine what would happen if your customers received the right message at the right time? By using Big Data to properly strategise the content displayed on screens and other offline spaces, we can help you increase sales by 30%. Establishing close connections with your customers on a personalised, deeper level. Knowing their needs and anticipating future ones. At the same time we favour their retention, repetition and recommendation; and consequently, the reputation of your brand.
What are you waiting for to take your business to its maximum capacity? Contact our team, we will be happy to advise you without obligation.