Retail

Retail is one of the hottest markets for big data analytics. Winning in retail sales is a game of small successes. Most retail margins are small, so keeping close track of overhead and delivery costs is essential to maintaining profitability. Finding new ways to attract and build customer loyalty is also a factor, and that means understanding customer sentiment and desires. Big data can answer these kinds of questions. By pulling together data streams from sales, operations, inventory, revenue, and other sources, big data analytics are helping retailers fine-tune their operations to reduce costs, increase customer satisfaction, and generate more profits.

Sample Architecture

360° Customer View

Customer behavior and sentiment can be determined using Hadoop analytics, which can help retailers refine how they interact with customers in the store, through direct mail, and using other marketing channels. Big data can correlate transaction data, online browsing behavior, in-store shopping trends, product preferences, and more. You also can incorporate external, unstructured data streams such as social media traffic to assess customer sentiment and behavior. The resulting insight can be invaluable in guiding inventory and pricing strategies.

Building Promotional Strategies

Retailers invest a lot of their resources into advertising and other promotional campaigns in the hope of boosting sales. However, sales could be driven better if these advertisements reach the right customers. Big data can help evaluate the needs of a customer segment by bringing into consideration the buying practices of a consumer and other relevant but often missed information like, let's say, the upcoming weather conditions. This data can be used to supply relevant advertisements to prospective buyers and consequently drive sales. US hotel chain, Red Roof Inn, employed big data techniques for light cancellation analysis and weather conditions. The company then used this data to send out offers on accommodation accordingly. This strategy eventually led to a 10% growth in its business.

Loyalty Program Benefits

Big data extends the channel reach of loyalty program benefits from point of sale, Web and call centers to mobile and social capabilities. Customers can accrue rewards by more than purchases; rewards can be earned for being good product or brand ambassadors or through social relationships. The MapR Converged Data Platform can help retailers capture, analyze, and report on individual customer activity over time, enabling them to provide personalized and differentiated attention to their best customers.