How Big Data is Shaping the Future of Retail
It’s probably a distant memory but before the technological revolution, shoppers would walk into a retail store and take guidance from salespersons to make purchasing decisions. Salespersons would understand their customers’ needs and preferences and match them with the most suitable products from the inventory.
Today, consumers do extensive research before purchase. So much so, it could be said they know as much (if not more) about products as retailers and salespersons. Doing extensive research enables buyers to gain maximum value from the money spent and make assured purchases.
The advent of technologies such as smartphones and digital eCommerce and the plethora of online information — about brands, product pricing, and customer reviews — have helped buyers get smarter with purchasing decisions while providing retailers the opportunity to better understand their customers’ needs and pain points.
Big Data services, powered by artificial intelligence (AI) and machine learning, help retailers stand out in a crowded, competitive marketplace. It allows brands to expand customer personalization, enhance customer service, employ demand forecasting, and thus trigger loyalty and improved sales.
Understanding customers is now less about in-person interactions (given the decline in customer visits to retail stores) and more about algorithms that uncover key insights from sales, demographic, and social media data. Big Data insights help brands make fast and data-driven decisions to test customer interest in coupons, to personalize offers based on shopping history, and more.
In a 2019 survey, 92 percent of 1400 retail leaders said one of their key business priorities was “reinventing the customer experience”, where the role of Big Data is paramount. In which other ways could Big Data impact retail in the upcoming years?
Inventory, supply chain…
As connected devices and wearable technologies become mainstream, retailers could harness the data collected from these devices to optimize customer interactions, improve the in-store experience, and create personalized offers.
Retailers could leverage IoT to improve the supply chain, increase revenue streams, improve customer experience, and gain much more.
IoT and RFID tags would help take stock of the inventory arriving and going out of the store.
The Internet of Things further enables retailers to track potential buyers who glance through items but never purchase, those who never set foot in the store, and identify ads that receive the maximum engagement.
Retail robots
Robots are making their presence felt in the retail industry by freeing up humans of routine tasks, answering simple questions, and helping with inventory monitoring.
The key benefit of robots in retail will be the opportunity to collect granular data about customer purchasing patterns, in-store product data, and more that can enhance the accuracy and efficiency of inventory management.
Data collected by robots of every customer touchpoint and stored in the cloud data management system would help retailers in multiple ways. They could leverage the data to uncover pricing insights, forecast repricing opportunities, create benchmark pricing, manage loyalty programs, and more.
Omnichannel experience
According to a recent Brightpearl study, 87 percent of retailers agree that omnichannel is critical to their business, though only 8 percent have mastered it. After all, omnichannel retailing increases customer lifetime value improves buying experience and increases consumer spending.
Omnichannel retail gives shoppers a holistic experience through the purchasing journey. That means, whether a consumer is browsing products from their mobile devices, interacting with a brand on social media, or dropping into a brick-and-mortar store to make a physical purchase, it’s a seamless experience.
With the help of Big Data, retailers would have access to the data they need to market their products and provide buyers with a smooth shopping experience that they expect.
For a buyer, omnichannel retail offers great convenience and personalization. For retail brands, it’s likely to boost their profits.
AR/VR
Augmented and virtual reality are revolutionizing the retail sector and, considering the wide-ranging benefits they offer buyers and retailers, they are here to stay.
The magic lies in being able to get a feel of how a product would look when used: prospective buyers could, with the help of AR, project for example how a furniture set would fit into their living room or if it would fit at all.
According to one report, more than 60% of US adults surveyed said augmented reality had influenced where they shopped, indicating the need for technology in modern retail.
For retailers, the data collected from implementing AR and VR would help study buying patterns and customer preferences.
Summary
Technology has and will continue to shape the future of retail. To cater to the evolving needs and preferences of the modern buyer, retailers must leverage Big Data to provide better customer service, expand personalization, and streamline the buying experience. Retail robots, IoT, augmented and virtual reality, and omnichannel are sure to play their part in helping retailers collect critical data and generate actionable insights for the desired business impact.
Author Bio
Suhith Kumar is a digital marketer working with Indium Software. Suhith writes and is an active participant in conversations on technology. When he’s not writing, he’s exploring the latest developments in the tech world.
