Article

Why big data is big news for retailers

Unlike ever before, brands can build up a truly accurate picture of their individual customers, as well as overall demographics.

May 14, 2014 by Clare Evans

The concept of "big data" is nothing new.

Retailers have been gathering information about the customers that shop in their stores — and increasingly via their online and mobile sites — for years. But today, big data empowers brands; armed with in-depth information about their audience demographics, it is easier than ever to deliver tailored experiences for customers.

Customer profiling: Unlike ever before, brands can build up a truly accurate picture of their individual customers, as well as overall demographics.
Customer intent: Big data also teaches brands more about the intent behind a purchase, helping them to tailor their marketing.
Multichannel offering: As customers readily flit between mobile apps, e-commerce sites and bricks-and-mortar stores, big data empowers retailers to deliver a single, seamless service across all channels.
Leveraging sales: The ultimate goal for all retailers is sales; by using big data to understand their customers, they can offer a service that meets their needs.

Giving the power back to brands

Imagine being able to know everything about every customer that crosses your store threshold: from their name, measurements and purchase history; to likes and dislikes, relationship status, and what they’re planning on doing this weekend.

This is what big data can do for retailers.

It empowers them to know exactly what a shopper is looking for as soon as they enter the store based on the products they viewed on the website only a few hours before, for instance.

As consumers become increasingly tech-savvy, they demand more from the bricks-and-mortar stores they frequent. And as their demands change, brands need to be able to adapt in order to hold the attention of the fickle shopper.

Here, we take a look at how retailers can and should be using big data to enhance their retail experience:

1. Real-time retailing

Brands are oftentimes on the back foot when it comes to selling the products their customers need.

For example; a sudden heat-wave hits and stores quickly run out of their limited stock on barbecues, beer and burgers.

Or during a particularly cold spell, a clothing retailer could recommend shoppers a coat — ready and waiting in their size — based on their browsing and purchase history as soon as they enter the store.

Real-time data would allow brands to keep track of trends such as changes in the weather and quickly update their stock, promotions, and point-of-sale to capitalise on this. This kind of reactive retailing sees brands meet the specific needs of individual customers, rather than assuming everyone that enters the store wants the same thing.

2. Made-to-measure service

One of the best ways bricks-and-mortar retailers can maximise big data is through the service they offer in store.

Take US luxury watch retailer, Tourneau. Salespeople in store are equipped with iPads that can quickly and easily pull up a virtual tray of timepieces based on a customers’ purchase history. This not only allows assistants to engage with customers, but helps to deliver a personalised experience every time.

Big data from elsewhere can also be used by sales staff to personalise the shopping experience all the more. Imagine the possibilities for brands if they knew from a customers’ social media postings that they were going on holiday. Staff could then show them appropriate products as soon as they enter the store.

3. Targeted retailer messages

This idea of a made-to-measure level of customer service leads us on to our next point; sending tailored and targeted push messages to shoppers as they browse in store.

Imagine being able to send a message to a customer as they browse your range of cycling helmets to tell them that a particular brand is currently on special offer.

Or quietly informing a customer that you have the latest pair of running tights in stock — in their size — to match the jacket and trainers they brought online last week.

This is exactly what Apple’s iBeacon technology enables brands to do.

Recent statistics in The Drum show that 45 percent of 1,300 UK smartphone users would be "very willing" or "somewhat willing" to accept these kinds of messages from retailers when in store. Not only that, but 33 percent also felt that these messages would be "likely" or "very likely" to influence their purchase decisions.

By using big data in this way, brands can not only leverage sales and boost dwell time in store; but they can also connect with customers in a new and innovative way. With the smartphone playing a huge role in the shopper experience, this is a smart and savvy way to utilise — and harvest — big data.

It’s clear then, that big data is big news and holds big possibilities for the retailers that use it to their advantage. Empowering brands in a completely new way, this level of insight into the customer provides retailers with endless opportunities to transform the shopping experience.

In an increasingly fluctuating retail landscape, retailers need to be capitalising on the information garnered from shoppers to keep ahead of the game. Big data lifts the proverbial lids on the wants and needs of customers; brands just need to take a look inside.

Photo by rh2ox