Retail: Why Your Competition Might Be Getting Smarter
What retailer wouldn't want to increase operating margin by 60%? That's right - none. So if you aren't leveraging your big data for analytical insight you'll quickly fall behind your competitors who are. You keep hearing this term – Big Data – but what does it mean? Is it a meaningless buzzword or something that will make you look like a rock star with your senior management? Read on.
We're fans of big data. We think big data is pretty sexy. But it's not just our geekiness coming out, it's that big data is now a significant difference between you and your competitors' bottom lines.
Baynote created the below infographic to show the benefits and challenges of using big data. Some of the highlights include:
Retailers using big data have the potential to increase their operating margin by more than 60%
Better understanding the shopper's path to purchase, buying decisions, and key influences
Ability to offer customized deals to top shoppers
Inability to envision how big data will add value to their businesses
Technical limitations or shortage of analytical skills to decipher and understand data
Inability to hire staff to handle/analyze the volume of data
Let's talk about the benefits first. We help leading multi-channel retailers understand how marketing actions influence customer buying behavior. The first step is to assemble all of your data – online and offline – to get a holistic picture of your customer. Marketing data adds up quickly (big data!) if you store:
Every click to the website
Every page view on the website
Every ad impression purchased/served
Every email ever sent/opened
Every direct mail piece ever sent
Every order ever taken (retail store, ecomm, call center)
Our next step is to combine your big data, rigorous data sciences, and our patented modeling techniques to attribute both the marketing and non-marketing activity that led to the purchase. This marketing attribution enables retailers to understand their actual ROI for each marketing action. The same technology can then be used to identify and target customers through retargeting, email, or direct mail.
If you are stuck on the challenges of how to apply big data to your business, consider this: would accurately attributing revenue, targeting the most profitable customers, and optimizing your marketing spend be of value to your company? If your answer is yes, then You don't have to figure out how to handle and analyze the data yourself. We are experts in retail big data and can help you decipher and understand how to use your data to drive your business.