Big Data: Augment the business of supermarkets


“Without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway.”  -Geoffrey Moore, author and consultant

In today’s digitally transformed world big data is everywhere. It is a Substantial thing which creates, share and uses the data nowadays. Data which is in the form of surveys, contact form, social media details of customers. It is evolving around three V’s: Volume, Velocity, Variety of data. Big data is a weapon for retail store and supermarkets. Valuable data about the customer is collected and is used by a grocery store and supermarkets, with every transaction that occurs in a grocery store to attract these customers back in. Here's a ride to get a view into how big data transform the retail industry. This will help you realize how big data today is not only limited to the technology realm; it is a resource for retailers to interact with their consumers in a real way. Let’s take a look at how supermarkets are using big data to increase their sales with some examples.

Customer Loyalty

Loyalty services are a smart way to collect and use data efficiently. They may have significant knowledge about consumer expectations and product preferences. Tesco was one of the first supermarket chains to start monitoring customer behaviour with its loyalty card programme and effectively handle the shift to online shopping (Bernard Marr & co., 2021). The supermarket faces many challenges, varying from transforming buying habits and the need to minimize food waste to measuring newer rivals. The solution to these problems resides in cutting-edge, real-time research and the most up-to-date data.

Predictive Analytics

Currently, grocery stores gradually harness the underlying technology of predictive analytics. This method of analysis predicts future trends based on existing and past consumer data and may help to improve the business of supermarkets. Big data helps Amazon to recommend products for customers based on their previous purchases and orders. They analyse more than 150 million accounts and achieved 29% of revenue from their recommendation engine. (Yodlee.com, 2021)

Personalized Customer Experience

Big data also aims to enhance seamless customer service and experience by communicating directly with users. They get complaints and reviews each day for their products. By analysing these comments and feedbacks supermarkets can improve their products and services. It will be used to provide each customer with more personalized marketing and promotions, to enhance productivity. Retailers can send emails with customized discounts and special offers to attracts users.

Big data is the future of retail, and if you wish to succeed in today's and tomorrow's world, it is important to leverage the wealth of consumer information. Gathering, optimizing and analysing big data enables retailers to achieve more goals. Insufficient data for business will cost any company a lot of money and difficulties to handle their business. There are a lot of challenges to face while using big data for supermarkets. It is interesting to see how big data will boost the business of supermarkets and grocery stores in the future.

Author: Akshata Dalvi

Keywords:

Big data in Retail

Use of big data in retail industry

Examples of big data in retail

How big data is transforming the Retail industry

Reference:

Bernard Marr & co. 2021. Tesco: How one retail giant has revolutionised grocery shopping with Big Data. [online] Available at: <https://www.bernardmarr.com/default.asp?contentID=687> [Accessed 12 February 2021].

Yodlee.com. 2021. The Power of Big Data in Retail. [online] Available at: <https://www.yodlee.com/data-analytics/the-power-of-big-data-in-retail> [Accessed 13 February 2021].

Comments

  1. I find this really informative. I wanted to add few more points here which is also crucial for Big data analysis:
    1. Data mining- Mining technology helps you examine large amounts of data to discover patterns in the data – and this information can be used for future analysis to help answer complex business queries. With data mining framework, you can sift through all the chaotic and repetitive noise in data, pinpoint what's relevant, use that information to assess likely outcomes, and then accelerate the pace of making informed decisions.
    2. Hadoop- It is one of the most renowned software. This open source software framework can store large amounts of data and run applications on clusters of commodity hardware. It has become a key technology to doing business due to the constant increase of data volumes and varieties, and its distributed computing model processes big data fast. An additional benefit is that Hadoop's open source framework is free and uses commodity hardware to store huge amount of data.

    Author: Mahindan Uthayakumar

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  2. Well written Akshata. Very informative piece of writing.
    You have well sounded that Big data refers to the massive, varied data sets that are rising at ever increasing rates. It covers the amount of data, the speed at which it is generated and collected, and the range or scope of the data points covered. Big data also comes from the mining of data and comes in different formats.
    Akshata, have you thought about the success of a monster companies like Facebook or Amazon? Big data is used by many businesses, such as Facebook, Twitter Tiktok etc, to generate ad revenue by putting targeted advertising on social media users and those browsing the web. In a business, almost any department can use data analysis results, from human resources and technology to marketing and sales. Big data helps to accelerate the pace at which goods reach the market, to reduce the amount of time and energy needed to gain market recognition, to target markets, and to ensure that consumers stay happy.
    You have done well.
    @Thomas Devasia

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  3. Often I get messages from the supermarket. Now I understand why it is. This blog is comprehensive and informative. Thanks

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  4. After reading this blog I got the insight of how much data supermarket stores collect from customers which is a major concern from the perspective of security.

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  5. Very informative.excellent work. Congrats

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  6. Very informative piece Akshata. Especially supermarkets are gaining importance in the Covid times, Big data can help in many things, now it's up to the retail sector to use it efficiently. Great work. Keep it up!

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  7. well written blog Akshata. very informative writing and its a valuable piece of knowledge.
    I would like to share few ideas. In the present condition customers expect personalization. Customers always expect seamless experience between online channels and brick and mortar stores. And though data and analytics will never replace the best of creative minds which create best marketing campaigns. So big data can provide marketers with tools which help them to perform better. Big data analytics is now being applicable for every step of retail process

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  8. A very thought provoking article, its really something that No body would have though off. Thanks for the wonderful piece of information!

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