New retail is set to gain momentum as big data and smart devices continue to develop.
At the moment, global retailers are eagerly seeking the best way to utilize big data, which is critical for their future survival.
There are a number of ways big data can bring in more business.
Through multiple interfaces, such as physical stores, websites, mobile and smart TV, companies can better observe their customers. By pooling and integrating information from different data points, companies can find out who are the most valuable customers, what drives them to spend more, etc.
Such information will not only attract more customers but also improve customer loyalty.
There are two shopping trends in recent years. First, customers would first go to brick-and-mortar shops to feel the products and then buy them online. Second, some would make purchases online but collect them in offline shops.
After crunching data from point-of-sale machines, in-store sensors, and browsers, retailers can tailor different marketing strategies for different customers.
Big data analysis can also help us identify the best ways to interact with customers and their shopping patterns.
Insight from data mining can be very useful for making important decisions such as where to open a physical store, or what kind of pricing strategy should be used to stimulate customer traffic.
This article appeared in the Hong Kong Economic Journal on Feb 28
Translation by Julie Zhu
[Chinese version 中文版]
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