How “Big” is the Big Data in retail? | Column · Kega

How many retailers actually utilise the power of data? A retailer registers all transactions in the webstore and at the cashier’s desk. All products that are sold are processed immediately. Inventories can be consulted at the touch of a button. A retailer knows exactly who buys what, through which channel and by what method. And who responds to which promotional offers. What works and what doesn’t. A retailer can measure at precisely which moment someone walks passed the store, and whether that person is a customer or not. The walking route inside the store can be measured, as can the locations where the customer stops and look. Retailers record who visits the website and who leaves items behind in the shopping cart. As you can see, we’re talking about an incredible amount of data. But is it Big Data?

We haven’t even touched on the subject of all the external/open data that’s available. We app, facebook, tweet and google our way through life using huge amounts of data every minute of the day. According to Forbes, it is estimated that in 2020 every person will be generating 1.7 MB of data per second. And with all the smartwatches, mobile devices and other gadgets, this will only increase. If we listen closely, we can hear what consumers are saying about our brand, what the trends are and what people find important. At any given moment during the day we know precisely where on our planet the sun is shining, where it’s raining, where traffic jams are, which trains are late, or which flights are delayed. And the rapid developments in technology enable us to capture all that data, use it in algorithms, and combine our insights creatively and take advantage of unique opportunities.

Retailers know absolutely everything about their leads, active customers and inactive customers. Based on the wealth of data, they can even forecast behaviour and thus anticipate the best move to make. And yet, everyone is still getting the same generic message! So why is data being collected then?

One thing is clear: collecting data alone does not get you where you want to be! Big Data does not simply mean gathering as much data as you can. Data needs to add something extra to your strategy. It is vital to look at the insight that the data offers, to dare to combine different data sources creatively, including external sources. It’s about creating new opportunities. To get there, you need to ask the right key questions; questions and answers that are in line with the business and help guide the consumer through the purchasing process. Moreover, the questions and answers must bring us closer to the consumers, so we can get to know them and better understand how to speak with them through the different channels. But, most importantly, it comes down to converting your insights into action. Based on the data, communicate with the consumer! Be personal! And let’s not all scream out the same message. Data as a means to an end!

Not because we can, but because we need it!