What is Big Data?
Big Data refers to data sets so large and complex that they must be processed in innovative and strategic ways.
It breaks down into 3 categories:
80% of all the data in the world was created in the last 2 years!
2.5 Billion GB of data are created each day.
Unstructured Data: Photos, videos and info from social media.
Structured Data: Traditional data that can be structured like sales and operations.
100 countries have regulations on the protection of data.
“Information is going to be our generation’s next natural resource like steam was to the 19th century.” – Ginni Rometty (CEO of IBM)
How is Data Captured & Mined?
Transactional data can be captured into a database where various tools can slice and dice the data to extract patterns.
Social listening tools can analyze text and relationships between people and networks using computer algorithms.
Shoppers are willing to give more personal information when they are receiving more value from the store. Loyalty programs and required checkout information are ways that retailers collect data.
What Can Retailers Get Out of It?
It gives retailers the ability to personalize and act in real time.
81% of companies planned to use at least 10 channels to listen to and engage with their customers.
59% of retailers identified a lack of consumer insights as tgheir top data related pain point.
Customers receive coupons based mon what they have browsed online. (KOHL’s)
Wal-Mart creates 1 million rows of transaction records each hour from a combination of sources that monitor shopping habits.
This gives them massive customer insight to help target customers more effectively.
Why & How is This Useful?
Track when your revenue peaks.
Track how much your customers spending.
It is cheaper to keep your best customers than to acquire new ones.
Monitor and predict customer behavior and needs better.
The more you have, the more useful it is. You won’t know till you mine the data.
After mining the sales data Wal-Mart found that beer and diaper sales are correlated. By moving them closer, they saw a sales increase.
Strategize More Wisely by Acting on Big Data
Change price based on demand to maximize profit.
Target your audience more effectively.
Make better product recommendations.
Know what’s in demand and have plenty in stock.