How to use big data for retail management

We live in a world increasingly driven by data. Big data reveals patterns, trends and associations, especially relating to human behaviour and interactions, which has important value for the retail industry.

As consumers are switching more and more to online shopping, brick-and-mortar store traffic declines year-over-year. Optimizing every in-store consumer visit is critical to retail success. Retailers can make use of intelligent, automated consumer analytics (audience measurement) solution to collect, analyse and interpret customer data, which help them formulate better business strategies.

Consumer analytics system uses responsive content across connected devices. Video sensors are installed in different locations across the store to anonymously capture real-time shopper activity, so as to find out shopping patterns, market trends, customer preferences and other useful information, such as:

  • Traffic, demographics and engagement metrics – shoppers’ age, gender, dwell time (how long they are engaged with the display), mood

  • Consumers’ journey in the shop – where different individuals go, how consumers interact with the store displays

  • Popularity of products – which merchandising displays attract the most customer attention, which promotions and ad campaigns are working or not

  • Shopper metrics by time-of-day and day-of-week

The data collected provide valuable insights and recommendations for shop improvements. For example:

  • optimal store locations to deliver promotions and launch new products

  • optimized placement of display to increase traffic

  • consumer journey optimization

  • optimize cross-sell opportunities

  • focus on the more effective ads and promotions

  • identify traffic peaks and lulls so as to make staff arrangements more effectively during store hours

Without these data, shops are like running in the dark and have to learn by trial and error. Big data, however, offer highly accurate information for business managers, enabling them to make better business decisions. As a result, shops will be able to increase efficiency, sales and profits.

What kind of retail shops will benefit from audience measurement solution? You name it – grocery stores, supermarket, convenience stores, department stores, furniture retailers, apparel retailers, consumer electronics store, gift shops …

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