It is no secret that retail does not go through its best moments, many chains report low sales levels or at least not the desired income or reported in previous years, there are other companies that close hundreds of stores.
The answer for some is to turn to e-commerce, where it seems that native companies like Amazon or eBay have the advantage, but strategies like those of Walmart show that ‘conventional’ retailers have much to gain.
This is where Big Data can play an important role, although some may think that the digital world is for large companies, in recent years they have shown that small and medium companies can make the most of these tools and be competitive.
In concise terms, we can define Big Data as the management and analysis of huge volumes of data that cannot be treated in a conventional manner and that, with the help of technology, can achieve great results.
In this context, we can say that Big Data offers the possibility to brands and platforms to make adjustments to their marketing strategies, which translate into a greater number of sales. Here are six points of how e-retailers can use it in their favour, according to Practical E-commerce:
By collecting data in real time while consumers make their purchases with the same retailer but in different ways and at multiple points of contact, they allow the retailer to identify areas of opportunity to offer the buyer a more personalized experience.
2. Dynamic price
To offer its customers a competitive price, it is necessary to collect data from multiple sources, so you can compare prices with respect to competitors, sales of another product catalog, consumption habits by region, promotions, etc. In this way you can determine sales strategies.
Also Read: How “Big” Is Data In The Retail Sector?
3. Customer service
Undoubtedly, offering good customer service is key to consumer loyalty, especially in the online world . In this area, with Big Data you can collect information from different channels and make crossings to offer a better solution and, thus, users will feel more valued.
4. Fraud prevention
The collection of large volumes of data and their analysis help to increase the detection of fraud. However, it requires the appropriate infrastructure to detect them in real time. If you have one, it will result in a more secure environment to manage your business and improve profitability.
5. Predictive analysis
The analysis is crucial for all e-retailers, it does not matter if it is a large company like Amazon or Walmart or a small company. Big Data helps identify events before they occur, both the behavior of customers and the market.
Why it is important to have Big Data as an ally if you are an e-retailer, because the industry is doing it and, seriously. Data provided by Forrester, which indicate that among the top priorities of industry leaders are consumer loyalty and retention (34.7 percent), CRM strategies (29.2 percent) and online consumer experience (28.1) percent), aspects that are even maintained over issues such as analytics or digital marketing.