Big Data is Changing the Game: Five Questions for Retail Leaders
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We’re excited to release the findings of BMC’s latest Big Data survey in a new report. The results suggest five key questions that retail leaders who see value in big data should be asking themselves in order to capture competitive advantage.
1. How is your market changing?
How far have your customers moved online, and what does this say about what they’re looking for and not getting today?
2. Where are your biggest opportunities to win business?
It's important to bring a strategic focus to the decision of where a company applies big data. Don't forget to ask the big questions first.
3. Which communications channel will have the greatest impact?
While omnichannel customers want to communicate in multiple ways, some channels will have a greater impact than others. Find out which channels your customers are using, then use test and learn to put the right tactics in place.
4. How do you tap the creativity and power of your larger community?
Open up! One way to get the maximum value from big data is to share it with all who can add some value, from store employees and suppliers to customers. This will speed up identification and implementation of innovative strategies and tactics.
5. What’s the best way for your company to capture the benefits of big data?
Here’s the dilemma: The retailer who moves first will capture the majority of the competitive advantage, but most retailers don’t have the capability to be first-movers. Partnering with innovative providers is a potential path, but it also requires balancing possible rewards with increased risk.
Check out the report below or download a copy. What do you see as the main messages for retailers coming from this latest research? Are these five questions useful? What else needs to be asked?
Related posts:
- CPGs leverage customer retail analytics
- The RIGHT big data reveals the true influencers
- Former Tesco CEO on the economics of data
- What's needed for retail to realize the full potential of Big Data & Retail Analytics (blog)
Comments
Would be curious to know others' thoughts on the definition of "Big Data" as it’s not always clear that everyone using the term has the same definition in mind. In this survey, it appears to encompass internal sales data, and also data about social media tying back to websites. Anyone know of an authoritative definition posted somewhere online? Or willing to provide a definition yourself? Thanks!
"Coloring the situation is just how badly most large merchants misjudged technology. Back in 2008, Accenture found that retailers invested only 2 percent of their revenue in technology while most other industries invested two to three times that much. As they stood by, Amazon.com has amassed annual sales of $60 billion, six times the online sales of its nearest U.S competitor, Walmart."
Traditional retailers aren't prepared to reallocate the tens of millions of dollars towards more effective purposes such as investments in technology upgrades. Without these investments, their companies will stay flat at best and shrink at worst. And if you had the high end technical skill-sets for big data, would you rather work for a firm that's going to pay you at/below market or go to work somewhere where your pay package is based on the value you contribute?
This leads me to the only point I'd add which is most senior management teams aren't prepared for what's coming at them and its evident in how they are executing their strategy. To say there are budget limitations for technology investment is a crock. Most companies aren't willing to compete at the level Amazon is and its going to cost them. And the shortage of skill-sets means they are going to have pay well and make their work environment similar to what happens in Silicon Valley and Seattle (e.g. catered meals, flexible work policies, etc.) which most retailers aren't prepared to do.
My $.02 and am glad I am not working for a traditional retailer who's been slow to grow what's going on and make the necessary investments because most are about to get a bucket of ice water right in the face.
Here’s a first cut that I hope others will add to and modify and ,in the process, improve.
“Big data in retailing” refers to all the information generated by the business and from sources external to the business that impact its performance that was not practical, or even feasible, to collect and analyze before the growth in open source community tools and cloud-based computer power.
Looking forward to having this definition made stronger, clearer, or just plain better.