Big Data in Retail: Overcoming Challenges and Grabbing Opportunities
Retail has become an extremely competitive and complex environment that is always needed for an active online presence. Through eTail trailblazers, the online presence of traditional brick-and-mortar retailers gives rise to client expectations. This has resulted in merchants and managers using big data to deal with these operational shortcomings. Although big data analytics have enormous advantages, retailers still face certain key challenges.
For retailers with big data, channel fixation is a major challenge. Big data solutions must cover metrics in a channel-agnostic product for every business area–commercialization, price pricing, merchandising, and inventory, which allow customers to track brands and products rather than individual channels. Customer expectations are very critical in retail. Few answers can tell people which measures are to be taken or monitored in almost real time. However, retailers need effective business intelligence to keep pace with changing customer expectations and buying trends. They can be used immediately.
Big data is greatly affected by innovations. Although Big Data Analytics is a huge market, it is hard to distinguish between participants. Innovations are needed to bring attention to the market and develop customer relationships. Existing technology giants have large ponds of analysts to digest and interpret retail customer data, but lack the ability to prescribe retail guide that currently allows rapid decision-making.
When stock optimization was carried out in a desperate attempt to increase sales, retailers and brands have found themselves in a profit-draining scenario of constantly discounting products. To deal with the cause of its inventory problems, they need better information and more connected data to compete in today's fast-moving retail market. As consumers increasingly interact online and mobile with retailers and brands, and domestic businesses are called upon to generate double-digit revenue growth, they need a way to add products, distribution opportunities, and enhanced functionality such as personalization without adding to their internal costing and organizational structure.
While there are challenges, it is also an enormous opportunity. According to an HBR-published study, companies that create the perfect omnichannel experience have increased their shareholder worth 8.5 times using data analytics. This report by Oracle tells retailers that their operating margins can increase by 60 percent using big data. The solution is a thoughtful implementation of big data with sophisticated tools, driven by the appropriate combination of developers and data scientists, for every problem or obstacle. This indeed is the next major tech bandwagon, after all. Big data assessments are also the best way to gain insight into the view of today’s consumers.