LIMITATIONS OF BIG DATA IN RETAIL
While Big data has been pronounced as the next big thing in the retail sector and in fact with respect to its applications in the marketing space in almost every sector, one wonders whether the applications are actually relevant or is it too soon to be using this by the retailers. The Gartner’s Hype Cycle, as of last August, has placed ‘Big data’ near the tip of inflated expectations which is about to fall into the trough if disillusionment. While it is proven that Big data does have hold valuable relevance in the retail sector, however the limitations should be taken into consideration while employing big data to use in the retail sector.
With many of the big retailers enjoying the benefits of using big data,
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It is clear that consumers often use much more information than just the price of the product while making a decision to purchase a particular product. The amount of information than the brain processes while making a purchase us phenomenal, these being driven by various cognitive, social and behavioral cues. While sophisticated architecture may be able to capture the volumes of data to decipher a probable promotional strategy, even they will not be able to capture all the fine nuances which affect a purchasing decision, hence making it difficult to predict a promotional offer which has a high probability of working.
The answer is to follow the approach which e-commerce sites have successfully employed that is using structured experiments to find new possible effective promotional strategies. Tailored data for deriving effective promotions in retail is the answer to the above limitations.
Other more generic limitations of using big data and its applications which are also applicable to the retail sector are:
1) Dearth of qualified people to carry out the processes involved in big data mining and analysis
2) The possibility of infringing upon consumer’s privacy
3) Incomplete customer data
4) Lack of
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What was earlier an experiment is now a long term investment with vast payoffs.
Big Data is revolutionizing the retail Industry in the following ways:
1. Making sense of the vast amount of data that is available not only from the conventional demographic customer databases, but also from the social media, interactions with call centers, purchase history etc.
2. Investment in centralized databases to focus on data hygiene and analytics is increasing. Cost of storage devices is rapidly reducing.
3. Optimizing the Omni channel approach by using customer behavior data to gain insights about better ways to serve customers
4. Personalized selling has improved, as retailers adapt sales techniques and communication channels according to customer preferences and life
One tactic is decreasing overall marketing cost by utilizing social media and online marketing avenues to advertise promotions and sales to consumers (La Monica, 2016). Another tactic is implementing more efficient inventory control with better communications between upper management and employees (Wahba, 2016). Utilizing a “demand-based logic” technology system, Penney’s tracks real-time sales data for improved inventory management, ensuring stores are adequately stocked to meet demand. The information is integrated within a new database that will analyze consumer demand and help synchronize pricing decisions with sales and
Neiman Marcus is a department store that provides various luxury products including apparel, accessories, jewelry, beauty and decorative home products to the affluent consumer. Its headquarter was located in Dallas, Texas. Neiman Marcus also provides different service to consumers, such as one-on-one sales assistance, membership service, and replenishment service (“Company Information”, n.d.). Some experiential components are store environment, customer service, and product quality and variety, etc.
If Target want to be more efficient in the future they need to continue to increase the use of technology and reach out to consumers using the
Question 1 answer: Customer relationship management is mainly about building relationships with a company’s targeted profitable customers and maintaining that relationship through delivering customer value, as in how a consumer perceives a certain product and values it enough to buy it rather than buying the competitor’s product, and delivering customer satisfaction where the product meets the exact expectations the consumer had actually expected from the product or more, but not less. Companies can build customer relationships at many levels, depending on the nature of the target market (Kotler and Armstrong, 1988). Companies with many low-margin customers can develop basic relationships by which a company doesn’t get to know it’s consumers
Technology gives consumers unique access to information, while retailers must figure out how to get and use huge amounts of customer data which technology makes
Abstract Big data is everywhere. Big data revolution is creating paths to collect and analyze information of varying sizes, types and volume. It’s not only used in sectors like marketing, sales and product development. The potential use of big data is also spread to HR and Finance which help in finding new insights and strategic decision making.
This report will be based on targeting customers groups and marketing mix based on Apple. I will explain in what way and why groups of customers are targeted for selected products in Apple. I will explain the particular group of consumers which Apple would be targeting their products at. Apple is an American world-wide technology corporation that sell up-to-date technology to its customers.
The firm procures raw materials and components across the world and continually examines its production requirement against its manufacturing capacities to pursue cost reduction. Capabilities Thanks to the cloud, Revlon has been able to resolve the difficulties of big-data management efficiently by classifying all the unstructured data in the company (Swan,
TCii (2011) describes the importance of digital marketing that as the world is moving from analogue towards digital, people are consuming more and more digital content on a daily basis just as increased usage of mobiles, computers at works laptops and other gadgets-the companies who have yet not recognized this in their marketing strategies need to adopt it fast. The pace at which world is focusing on digital marketing it is possible that soon it will eliminate the traditional forms of
For this efficient communication with its customers is very important. It makes use of networking, media and internet to communicate. Apart from advertising itself through radio, television, banners, barouches it’s also been reaching out to its customers with the help of social media like Facebook and twitter. It also uses demographical strategy to meet its consumer’s interest. Burger king have established a data driven marketing process whose main focus is driving restaurant sales and traffic, while targeting a larger consumer
Tracking consumers’ habits in many different aspects of their life has allowed them to gear specific products in a specific manner. The Big Data I speak of is basically new. It is the data being created by all the electronic medical records the medical industry has begun to utilize over the past few years. With the mandate from Congress every hospital in the country had to install software to utilize as electronic health
The authors divided the subjects into two experimental conditions both groups had access to the same set of songs, but in the experimental condition, members could see how many times each song had been downloaded (Ibid.) In this experiment, what participants didn’t know was that researchers had in fact rigged the experiment, making up the download figures for the participants in the experimental condition. They discovered that participants in the experimental condition were nudged into downloading a song because they looked towards how many downloads each song had received in order to make a quick judgement regarding the quality of a song. In light of the above, I wish to implement a form of product liking system in-store for healthy dietary alternatives. Consumer Liking, is an interactive voting display system to be placed under certain healthy products that will allow shoppers to ‘like’ a healthy product.
It helps in most of the concerns of customers, improving and maximizing customer satisfaction, and gain customer loyalty, which will lead to the growth of the industry and more profit. The airline industry thought of coming up with a strategy that helps in finding information about the availability and cost of the flight, booking flights online, checking-in online, collecting information about each customer’s preferences, finding out which customers are most profitable, building customer loyalty by rewarding them, and increasing sales. Nowadays, almost everyone around the world is using the internet for personal use and for business use. That is why many industries are using applications that open on smart phones and tablets to make it easier, faster, and more convenient for the customers. Moreover, airlines are using e-business applications and Customer relationship management strategy, such as e-CRM which helps in managing customer relationship through the Internet, and many airlines are doing this as a separate plan to their e-business
Since the beginning of the 1990’s, e-commerce has radically changed consumer behaviour by introducing new retail channels (Ngai and Gunasekaran, 2007). Serious attempts to trade online started to emerge in the mid-1990s wheninnovative, technically savvy companies responded to the opportunities and challenges posed by the internet, to develop sophisticated web sites to serve customers, in their homes (Rayport and Sviokla, 1994). The present retail environment is characterised by new, store and non- store, retailing formats, a wide range of new products, use of new information and communication technologies and consequently, the changing customer needs. Moreover, the dynamic lifestyle conditions of consumers has resulted a change in their personal environment that contributes to a profound change in customer behaviour (Schröder and Zaharia, 2008). Retailing in the 21st century means doing business with customers on their terms (Mathwicket al., 2002).
Most people today, own one at least one technological device which could be one of the access platforms that form online channels the company may apply for their digital marketing to achieve profitability and retention of customers. Chaffey and Ellis-Chadwick (2012) state that a digital marketing strategy is constantly needed to provide a sense of direction for an organization’s online marketing activities so that they integrate with its other marketing activities and support its overall business goals. According to Parise et al.