How Big Data is Transforming Retail Industry

How It Works

Generating Recommendations:

Based on a customer’s purchase history, retailers can predict what the customer is likely to purchase next. Machine learning models are trained on historical data, which allows the retailer to generate accurate recommendations.

Making Strategic Decisions:

Companies will need to consolidate data, which will help in taking informed business decisions using a single and trusted source of information about products and customers. Retail dashboards will give a high-level overview of important competitive performance metrics, including pricing promotion and catalog movements.

Forecasting Trends:

Retailers can understand what the market demands are using economic indicators and demographic data.

Utilizing Market Basket Analysis:

A standard technique used by retailers, the market basket analysis helps figure out what products customers are most likely to purchase together. Using Hadoop, retailers can now analyze more data.

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Optimizing Pricing:

The big retailers like Walmart are spending big on real-time merchandising systems. Walmart is currently working on a private cloud that will be able to track millions of transactions every day. Inventory levels, competitors, and demand can be tracked, and market changes can be responded to automatically.

Listening to Social Media:

Listening to what customers have to say on social media is an important activity, especially for the retail industry. Platforms like Hadoop facilitate the analysis of vast amounts of unstructured data. NLP or natural language processing is used to extract information from social media sites. Machine learning is then used to make sense and give the retailer an edge over the competition.

Predicting Trends:

Marketers are using what is called sentiment analysis. Sophisticated machine learning algorithms are used to determine context. The data gathered can then be used to predict the top-selling products in a specific category.

Enhancing Customer Experience:

Retail analytics will now be used to anticipate the demand of the shopper as well as produce a seamless customer experience. This will help improve the customer’s experience and loyalty.

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Conclusion

Big Data analytics will play a significant role in shaping the future of the retail industry. The big data revolution is here to stay. Certification in Big Data will help you upgrade your career in retail analytics and marketing.