Customer data remakes retailing
Retailers are making use of more consumer data and better data tools to learn more about our shopping patterns and habits, ultimately providing themselves with more more targeted and efficient sales.
A revolution that began many years ago, and which has picked up steam in recent years, the collection and usage of data on and from shoppers, is beginning to pay big dividends in the retail industry. The items that are revolutionizing this use of data to drive retail sales involve more than just the quantity of data, though that has also grown. The types of data have also grown and evolved, as have the technological tools being used, from the user of different computers and highly intelligent analysis tools to run on them, according to a New York times story.
More and more novel ways have emerged for retailers to collect data, from in-store cards to social networking sites like Facebook to software running on smartphones. Thomas H. Davenport, a professor of information technology and management at Babson College, says “This huge and growing ecosystem of data is an asset that some retailers are really beginning to exploit for competitive advantage. It brings more science into the business. Relying on gut feel is yesterday’s strategy in retailing.” This deluge of data is being used to fine-tune marketing decisions including pricing, shelf-stocking and even the products to be offered.
Data is now also being collected by all types of computers, including point of sales system running on smaller computers. Of more importance, the software used to analyze has improved by leaps and bounds, providing better storage, faster processing, and more accurate algorithms to pinpoint exactly what specific shoppers are looking for and to quickly provide it for them on the Web, in catalogs, or on the shelves. This constant tweaking of supply follows as closely as it can the constant whims of consumer demand, giving retailers a chance to sell consumers more merchandise and, hopefully, a chance for consumers to get exactly what they want.
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