Big Data in Retail
The rapid growth in accessibility to transaction, interaction
and processing data is leading to a
paradigm shift in the way retailers do business. There is a vicious circle at play that is
retailers to turn the concept of Big Data into practical value-adding outcomes. Consumers
demanding more and more transparency from retailers in order to compare and contrast
and prices prior to making a purchase. As a result of this, tighter margins are in turn
the need to gain a competitive edge through innovative Big Data initiatives.
Bigdata Experts at Sentienz understand the game
of scale, retail companies easily hit 100s of terabyte
storage. Also we respect the existing IT Infrastructure and allow smooth adoption. Our
enables you to fasten the road to advanced analytics.
Bigdata the “Opportunity”
Big Data is much more than a huge dataset and access to cutting edge
it is the phenomenon that will separate the winners from the losers in
The growth in importance of Big Data is the latest evolution of the role of
within an increasingly competitive retail environment.
Bigdata “What” Data
For retail companies, it is important to tailor big data in multitude of
that are unstructured and unrelated, in order to meet the growing
faced by the industry in the present age. . The most significant objective
customer analytics is to understand and target most valuable customers and
profits and loyalty. It further tap the transactional data to coordinate
stores, products and promotions. Big data also helps the company to draw a
analysis of the dealings of its competitors, to have a competitive edge
Bigdata Retail “Scope”
Many existing business capabilities can be enhanced when more and varied
readily available for analysis, expanding the scope of opportunities and a
Bigdata Retail Usecase
Enhanced Customer Service
Excellent customer service is critical to the success of
an ecommerce site. Zappos and Netflix
are examples of terrific customer service. But Big Data has made customer service a
by requiring seemingly every interaction with a shopper to be used for serving that
To continue to excel at customer service, online retailers need to overcome this
For example, if a customer has complained via the contact form on your online
and also tweeted about it, it will be good to have this background when he calls
service. This will result in the customer feeling valued, creating a quicker
More timely responses to information requests
Personalized Customer Experience & Targeted Marketing
Recommend items that may catch customers' attention by cross-analyzing their online
with their in-store interactions. Suggest new online purchases to customers by
their online transactions and level of promotional engagement. Offer more value to
who are less likely to purchase by analyzing web logs and in-store traffic
Insights provided by geographic, demographic, and promotional data assist in
and cross-sell products. Secure more sales by targeting promotions to the customers
likely to purchase again. Expand your market segments by offering your loyal
incentives to share coupons and promotions with others.
Optimizing the Sale channels & Merchandising Range
Boost your sales and margins by looking at both online data and historical POS
data. One can Minimize losses by matching product success and failure with
psychographic, and demographic data.
Its important to maintain the right inventory by correlating external factors
weather, major events, and potential natural disasters to purchase behaviors.
merchandising decisions drive topline and bottomline improvements through
Analyze customer sentiments via their tweets, facebook likes/dislikes, photos
Analyze click stream data
You’ve been segmenting your customers for years, but now
it’s time to micro segment them.
Big data empowers organizations to tailor their products and services to meet the
specific needs of each customer. An example the report gives is tailoring
on a Smartphone based on the owner’s personality.
Consumers shop with the same retailer in different ways. Data from these
points should be processed in real-time to offer the shopper a enhanced experience,
content and promotions.
Supply chain visibility
Customers expect to know the exact availability, status, and location of their
can get complicated for retailers if multiple third parties are involved in the
chain. But, it is a challenge that needs to be overcome to keep customers happy.
A customer who has purchased a backordered product would want to know the
will require your commerce, warehousing, and transportation functions to
with each other and with any third-party systems in your supply chain. This
is best implemented by making small changes gradually.
Managing Fraud & Abuse
Larger data sets help increase fraud detection. But it requires the right
to detect fraud in real-time. This will lead to a safer environment to run your
and improved profitability. Most online retailers need to process their sales
against defined fraud patterns, for detection. If it's not done in near real-time,
could be too late to catch the fraudsters.
You need dynamic pricing if your products compete on
price with other sites. This requires
taking data from multiple sources, such as competitor pricing, product sales,
preferences, and customer actions to determine the right price to close the sale.
merchants like Amazon already support this functionality. Overcoming this challenge
give your business a huge competitive advantage.
Predictive analytics (Supply Demand forecasting)
Analytics is crucial for all online retails, regardless of size. Without analytics
difficult to sustain your business. Big Data has helped businesses identify events
they occur. This is called "predictive analytics." Predictive analytics is becoming
important tool for many businesses. A good example of this is predicting the
from a certain product in the next quarter. Knowing this, a merchant can better
its inventory costs and avoid key out-of-stock products.
In Store Experience
A grocery chain’s free shopping list App feeds into their plan-o-gram logic to
placement and increase cross-selling
ever-growing intelligence on what products shoppers are likely buy together
more effectively cross/up-sell related items through co-locating them
leverage the mobile shopping-list App to recommend forgotten items (i.e.
oil & vinegar)
Analyze Staff performance
Upper management will be empowered by the collection of
more accurate and detailed personnel
performance data that can be reported in real or near real time. Find out instantly
company’s turnover rate or its total number of personnel sick days, according to
report, to try to understand the root causes of certain performance-based issues.
Identifying Hidden Insights
Imagine if you could correlate sales patters to some unconventional source of data
or stock market etc. BigData opens up new avenues by unlocking the hidden insights
Store promotions such as Clearance sales or product launches can be floated by
first to determine if they are worth doing, or whether it needs further refinement.