Today, brands are faced with a more aware and informed consumer, and therefore it is crucial that companies offer a positive customer experience. The motivations and concerns of shoppers have changed and this brings new challenges to retailers, who in the omnichannel era have competitors who may be miles away, or by their side. Today, e-commerce accounts for a large chunk of the market share, with 20% of retail sales expected to be made online by 2025.
The retail sector is undergoing major changes driven by new channels and new forms of customer relations, as well as the way in which the customer relates and interacts with the brands themselves, which translates into great challenges and opportunities for the companies of the sector.
We are close to a model where the consumer decides with a lot of influence on the market information (available mainly in digital channels), allowing him a rationally adjusted decision. Brands need to know consumers to see what they are looking for and to adjust the supply to their needs and motivations. Today, customers are looking for excellence service and a personalized offer, tired of widespread advertising.
Analytics and Big Data solutions allow, based on a credible analysis of the data, to ensure that the company guarantees a personalized offer and according to the expectations of its customers.
IDC’s Worldwide Semiannual Big Data and Analytics Spending Guide predicts that investment in Big Data and Business Analytics solutions will reach $ 260 billion by 2022, up 11.9 percent from 2017 and 2022.
Analytics and Big Data solutions can be applied to all departments and processes of the company, thus making them more optimized. With consolidated data, decisions will be made based on trusted and reliable insights of products and customers. Dashboards give a real-time overview of important business performance metrics. Retailers are able to understand what the market is also asking for through economic indicators and demographic data such as competition and the level of demand, enabling rapid and effective responses to changing market conditions. In addition, investing in technology leads retailers to adopt a business strategy where the customer is the focus, with a deeper understanding of their behaviour and more efficient segmentation to achieve better and more effective marketing campaign planning, which greatly increases the return and conversion opportunities.
Undoubtedly, retailers are looking for competitive advantages that put them at the forefront of increasingly high competition. Analytics and Big Data tools will effectively respond to today’s challenges to companies in the industry to stay competitive in an ever-changing marketplace.