5 Big Data Trends That Are Revolutionizing Retail
In today's marketplace, data and retail go hand in hand. But although leading retailers routinely leverage data to improve decision making, lower costs, increase revenue and generate better customer experiences, most retailers readily admit that they still have a long way to go.
With growth-focused brands recognizing that data analytics is the key to survival in the crowded retail space, the focus is shifting toward better use of big data through innovative technologies and knowledge of current trends.
Big Data Trends in Retail
Big data has become big business in the retail sector. Right now, there are at least five big data trends that are revolutionizing retail and changing the way brands approach the retail task:
1. Managing mountains of data: The amount of data multichannel retailers have at their disposal is staggering. Transactions, call centers, loyalty programs, mobile apps, social media programs, supply chains and other data sources are dramatically increasing challenges and opportunities for retailers.
With estimates that the amount of data available is doubling every two years, leading retailers are struggling to collect the right data (i.e., the information they really need to guide decision making) and create centralized locations from which data can be interpreted and acted upon.
2. Investing in new technology: The growth of big data is rapidly outpacing retailers’ data-crunching capabilities, leading many brands to increase their investments in centralized databases and data hygiene.
As technology advances, savvy multichannel retailers are aligning their investment strategies with the pace of evolution, investing in innovations that enable them to store more data, centralize data (internal and external) and improve the speed of data analysis.
3. Tackling omnichannel with data: The retail marketplace is rife with omnichannel shopping behaviors. Consumers initiate the purchasing process in one channel and use additional channels at various points along the conversion journey, incentivizing retailers to leverage big data to deliver consistent customer experiences at every stage of the process.