There was once a time when retailers relied on large spreadsheets to keep track of things. Critical employees had to fly around in order to find the best products and maintain the best inventory. Today, the scenario is totally different. Big Data has played a large part in the changes witnessed in the retail industry.
Some have adapted well to the changes (some have even taken advantage of the changes) and some have struggled with them. Marianne Bickle (Contributor, Forbes.com), looks at some of the changes that Big Data and technology have brought about…
1. Retailers are finding it more difficult to make predictions. This might actually come as a surprise to many considering that Big Data actually empowers retailers to pinpoint what a particular customer wants. What many people do NOT realize is that it is “a two-edged sword.”
A consumer group might be lost simply because they have moved to a different mobile device which isn’t supported by their current retailer. In this case, it might be difficult to predict how many customers you’ll lose (or have lost).
2. Poor customer experience reports now spread like wild fire. It’s no longer the case of one unhappy customer telling ten other people. With social media, it could be a few millions before your company prepares an official position. There are instances of viral videos that have “hurt” businesses.
4. It is now critical that the analysis of data provides insight into why and how consumers buy a particular product. Such analysis should also provide their demographics and psycho-graphics. Otherwise, money spent on advertisement will be a waste.
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