Picture from Ladislau Girona
Offline Retailers practically did not work with transactional data a few years ago. But lately it is slowly changing. As shown by McKinsey’s research, progressive businesses are finding ways to extract big data from its stores. Thanks to this data, they make better management decisions or sell data insight directly to their suppliers. You can do it as well.
Try to imagine for a moment that you know what the customers will purchase in your store. Even before they reach the shelf for the first time.
Using big data, you can track your customers’ shopping behaviour patterns. Some only buy goods with a discount. Some are solely into organic products. Others always buy basic foods, regardless of the price. And some individuals only shop on Sundays – stocking up for the whole week.
If you had a list of such customers in front of you - would you send discounts for battery cage eggs to those who buy only organic products?
Companies have data, they do not know how to use them
As Christopher Raffer writes in his post, most companies in retail have the big data they need. Chris literally claims that “companies spend millions to collect and store data, but we’re only putting a tenth of it to practical use”. The result? 90 percent or more of the business data is left unused in cash registers or ERP systems. Data worth millions of Czech crowns, which no one notices.
However, the above-mentioned McKinsey research proves that better times are coming. Companies that are beginning to work with big data confirm that properly processed data helps them make better strategic decisions such as launching new services or completely changing business or marketing strategy. Over 70% of companies, which participated in the research, have changed their business based on Big data.
You can monetise your data
Data in your cash registers and ERP systems is valuable not just for you, but also for your suppliers. A supplier operates exclusively on the B2B market and cannot see in detail who purchases his products, how often, in promotion or not and to which competitor brands customers are switching to and from. Only you can offer suppliers such data insights.
If you start selling data insights to your suppliers, you can expect not only financial rewards but also improved mutual relationships and perhaps even a significant competitive advantage compared to other Retailers. The sooner you start the data monetisation, the better for you.
If you want help with processing and monetising data, please contact firstname.lastname@example.org