Put Big Data to Work
Retailers today can capture a wealth of data—including detailed customer transaction histories—but most don’t have the analytics capabilities required to make the most of that information. Success requires sifting through data to discern what the numbers really mean, and then translating that understanding into tangible actions that improve the company’s financial and operational performance.
Across all retail segments—from grocery to fashion—promotions are one of the most effective tools for driving traffic and improving margins. Collexe’s approach uses rigorous analytics to give a more granular picture of the performance of past events and then applies those insights to create more effective promotions for the future.
The emergence of big data and advanced analytical tools means that retailers can capture even greater value from such information, provided they know how to analyze and interpret it. Big data can explain the who, what, when, where, why, and how of retailing.
“Like most retailers, we don’t know exactly where we will land at the end of it but our curiosity and willingness to create will be a guide for us.”
– Jesper Brodin, CEO, IKEA.
Key Insight for Successful Retail Business
Collexe has been able to consolidate problems related to Retail business performance by improving within the following aspects using Business Intelligence:
Focus on the Most Pressing Opportunities.
Translate Analysis into Actions.
Maintain Trust with Consumers.
Retail companies win by improving sales or margins every day. Management teams should determine how to fuel growth in very specific, targeted ways, rather than trying to build a comprehensive solution.
Ultimately, big data in retailing needs to help people make practical decisions faster and more accurately. For example like, promote a product for an extra week, offer a two-for-one deal. Which promotions should we continue and which should we stop? Recommendations should resonate with those making the daily decisions. If people in those roles can’t respond to new information easily, they will ignore it.
To build trust among consumers and gain access to even greater amounts of personal information for big-data applications, retailers must be transparent about how they use the data and establish the benefits to consumers; such as lower prices and more personalized promotions.