Retailers have been collecting data on customers for years, but the more recent explosion of information brought about via social media and other unstructured data has overwhelmed many of today’s retailers. Despite this current state of chaos and confusion, some retailers are finding ways to successfully cut through the clutter.
For example, a recent CNBC article, “Retail Goes Shopping Through Big Data,” describes how big data analytics has helped Macy’s boost store sales by 10 percent, while other retailers including Kroger and Sterling Jewelers credit big data analytics for helping them increase sales and stay ahead of the competition.
However, while there is big value to be had from this unstructured data, many retailers are still challenged by how to properly integrate this data into their current databases and analytics processes to maximize its value. The problem is that often times both structured and unstructured data remain in separate silos within an organization and companies are often not equipped to share this data across all divisions.
In order to manage and properly utilize big data, you need to have a supporting organizational structure which means getting people out of their silos and communicating the importance of integrating both individual business transactions and network interactions. It also means sharing and comparing data from various sources to eliminate duplicate information as well as making connections between data points that can help you better understand your customers.
It is important to overcome system or organization silos and view content from a customer’s perspective. That way, you can convert isolated data in these silos into integrated cross-channel dialogues and engage customers in a well-coordinated manner.
Advances in analytics technology are enabling retailers to harness and analyze both transactional and behavioral data to help them get to know their customers better and create lifetime customer value. Taking the right approach to managing and utilizing this data can create a positive customer experience and help retailers build long-term relationships with their customers.
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