... so you’d better Make it Personal.
BIG DATA has escalated the retail environment, allowing brands to deliver a personalized shopping experience at the point-of-purchase. In fact, consumers expect it. And they are willing to share their personal information in exchange for it.
What is Big Data?
Big Data is the enormous amount of consumer behavior that is collected based on their interactions with brands and retailers via multiple touch points along their path to purchase.
Measured in terms like zettabytes and trillions of gigabytes, the digital space is doubling in size every year. Let’s just say it’s HUGE. On top of that, according to the Pew Research Internet Project, approximately 90% of American adults have a cell phone, 87% use the internet, and 74% of internet users participate in social media.
Anyone that is on Facebook and other social media sites realizes that people will share anything and everything- what they like, feel, eat, where they are, and who they’re with.
According to ACI Information Group here’s a look at what was happening every single minute in 2014:
- Facebook users shared nearly 2.5 million pieces of content
- Twitter users tweeted nearly 300,000 times
- Instagram users posted nearly 220,000 new photos
- YouTube users uploaded 72 hours of new video content
- Apple users downloaded nearly 50,000 apps
- E-mail users sent over 200 million messages
It’s mind blowing when you think about it.
What’s to Gain by Sharing Personal Information?
Consumers expect brands to analyze, sort and make sense of their personal data, and to use it in useful ways to simplify their lives, even to anticipate their needs. In fact, 48% of consumers expect brands to know them and suggest products and services that meet their needs, according to a Digital Trends report from Microsoft. As long as consumers remain in control of their own data, understand how it’s used and approve of its use, they can build a mutually beneficial relationship with brands. Consumers will expect retailers and brands to leverage what they know about them and reward them with better service, a better shopping experience, and relevant and timely offers.
The Association for Retail Environments’ (A.R.E.) recent Trend Report states that consumers are realizing that their personal information is quite valuable to brands, even considered a commodity. They give the example that Facebook’s users are not its customers, rather, they are its product. “In the Personal Information Economy, consumers take control of their data, quantify the minutiae of their lives, manage their reputations online, and even monetize their personal information.”
Using Technology to Capture In-Store Shopping Behaviors
“…2015 will be the year that customers return to stores because technology is engaging them in new ways, making them want to buy more and come back,” said Brendan O’Meara, Microsoft’s Worldwide Managing Director of Retail & Consumer Goods.
Technology is constantly evolving with the intent of improving the data collected within the retail environment, sorting it and analyzing it. Sensing technologies, videos, smart shelves, eye tracking technology, iBeacons, virtual heat maps and mobile devices are all methods in which brick-and-mortar retailers can collect customer data at the store level.
Regardless of the method of collecting Big Data, it is no benefit to retailers if it is not harnessed and acted upon. This infographic, created by Visualistan, is a great illustration as to why Big Data is so important to brick-and-mortar stores and how it can be leveraged to improve the customer’s shopping experience. Some of the key benefits that will help retailers win at the shelf include:
- The most popular items can be merchandised to stand out to shoppers
- Items can be recommended to shoppers based on previous purchases
- Digital screens can be utilized to create personalized walls for shoppers
- Stores can send offers to shoppers while they are in the store, based on what they are putting in their shopping cart, or what section of the store they are in
- Stores will have the ability to merchandise based on the habits of their shoppers
- Retailers can use the data to draw shoppers to areas of the store less shopped, such as center store, with targeted POP materials and displays that help cross sell and increase impulse purchases
KDM P.O.P. Solutions Group supports retailers and consumer brands in executing their in-store marketing goals and creating an awesome customer experience. Contact us today to to get started on achieving Big results!
- The Evolution of Retail Environments
- Retail Innovations Redefining the Customer Experience
- Using Technology to Deliver Personal In-Store Customer Experiences