Across virtually every industry, big data is being favored as the must-have to drive strategic company-wide initiatives. The retail industry, particularly in terms of real estate, must be willing to utilize critical information that can have a massive impact on decision-making related to marketing and location. Businesses must move in ways that are parallel to how consumers are moving, and there is only one way to effectively do so: big data.
What is big data and how does it relate to retail?
Big data is the common phrase that references extremely large data sets that can be gathered and digitally analyzed to reveal patterns, trends, and associations. However, the understanding of human behavior and interactions is that component which is most useful to the retail industry. Traditional marketing has historically relied on a cookie-cutter strategy of building large stores and inventory, but that model of success is changing. Retailers must now employ strategies that are flexible, with a soft asset base than can adjust as consumers change pace. Big data is what makes it possible for retailers to identify these shifts in the industry.
Big data can result in disciplined marketing.
Any company has the capacity to funnel their marketing dollars as appropriate, if they are maximizing their ROIC. Big data has demonstrated that traditional media outlets are no longer premium advertising opportunities. Social media platforms are where most consumers convene on a regular basis, and the movement is easily trackable. Retailers can identify exactly what their advertising spending ROI is on social media platforms, which is much harder to achieve with traditional marketing methods.
How can you capitalize on big data?
Big data significantly diminishes the risks associated with spending. You can establish an inventory at a pop-up location with preemptive ideas of what consumers are looking for that is based on reliable information. A brand can define itself based on values that customers are searching for, with an excellent product from a consistent organization. Of course, the trick is in effectively capturing that data. Large data sets can be extremely difficult to decipher and apply towards a beneficial strategy.
ASGedge has helped more than 70 specialty retailers control costs, streamline business operations, and maximize profit potential in their stores. By automatically capturing collected data, a retailer can easily improve performance with targeted strategies based on consumer information. Big data is an essential tool, but how you take advantage of the available information is up to you.