Every movement begins with a moment.

Big Data-Driven Retail Promotion in the Modern World

Posted 16 February 2016 9:00 AM by Justin Honaman @MoxieUSA, @jhonaman

There are two key things to consider when pondering big data’s role in the modern marketing landscape: 1) the types of new data sets and 2) the variety of new data sources. Each is driving the development of new analytics tools and technologies, which in turn, are driving the business value of big data across organizations. 

Today, big data involves multi-structured data sources. In the past — and regardless of their professional roles — people would leverage just one analytical tool to glean insights. Statisticians would use a numerical tool, analysts would use a business intelligence tool, and so on. But in modern marketing, our resources have to match the diverse and myriad sets and sources of big data generated by our ever-evolving, multichannel environment. And likewise, an organization’s analytical architecture must feature many different technologies, including traditional data warehousing, a data discovery platform, and a layer that performs multi-structured data refining enabled by Hadoop.

As our world becomes increasingly more connected — and consumer touchpoints continue to multiply and evolve — big data’s reach and influence will become even bigger. This means that every line of business in your organization can benefit from it. In fact, statistics from McKinsey indicate that use of big data has the potential of improving global productivity by 1% — a massive amount when you’re talking about a global business.

In the consumer goods (CG) space, big data enables retailer collaboration. CG manufacturers can leverage it to merge consumer shopping behavior and social network insights with loyalty and transaction data. This all-encompassing blend of data sets enables them to truly understand what’s driving path to purchase across their different customer segments. These insights can lead to increased engagement, thus driving more sales and loyalty opportunities for both the retailer and the CG firm.

The evolution of big data has also affected our information’s shelf life. In the past, the retail industry extolled the benefits of keeping data for years on end — so many historical insights and patterns to be leveraged, after all. Today, that’s simply not the case. Data can go stale in just a few months, a phenomenon that speaks directly to the high-velocity aspects of big data. Because in a number of cases, the true value of big data-generated insights comes from their use in real time.

Take, for example, the practice of sending a promotion that is triggered by the in-store scanning of a product’s QR code to a customer’s mobile phone. This can be a relatively simple automated process that doesn’t require extensive analysis. However, let’s say the promotion is not only addressed to that shopper, but is also designed specifically for her based on factors including her previous purchases and her online and mobile searches — or even her potential to be a high-value shopper due to her demographic similarities to other shoppers. Now we’re getting a bit more involved. And so is big data.

Such highly personalized promotions require bringing together data from customer loyalty and digital analytics solutions, shaped by sophisticated predictive analytics applications, and all tied into in-store and mobile promotional tools for delivery when the shopper is at the point of decision. And while this type of effort requires a significant investment in both analytics and good data management, it could also produce conversion rates (read: an ROI) that would dwarf those of broader promotional efforts.

This type of retailer promotion ties directly to the CG partnership, as many product promotions are bankrolled by trade fund dollars provided by the CG firm — all with the aim of driving transactions/product movement, trial/acquisition, in-store traffic and sales.

Another example where speed is of the essence: store-based fulfillment, which is becoming increasingly popular as retailers realize the value of their existing store network in getting products into customers’ hands. Operating such a fulfillment network, however, requires retailers to establish business rules that analyze all the costs involved. They also have to have a direct relationship with CG suppliers to fulfill specific orders and — when stores are furnishing the goods — ensure on-time, in-full inventory replenishment.

In some cases, the shortest geographic distance between two points might not be the most cost-effective route. Drop-shipping an item from a CG manufacturer or distribution center — even one located a few states away — could conceivably be better for the retailer’s bottom line than shipping it from a store located in the same city as the customer, particularly if the store risks an out-of-stock situation if the item is taken off the shelf or out of the backroom.

Determining how these multiple factors interact depends on real-time inventory information, variability in shipping costs and even weather conditions that might slow down a delivery. The fulfillment decision, however, needs to be delivered immediately and automatically, either directly to the customer or to a call center or store associate.

“Transforming raw data into timely insight is at the core of a good [business intelligence] strategy, and doing it quickly even with high volumes of data is the mark of a good big data initiative,” noted Aberdeen Group’s Rowe. CGers that can master not just the velocity, but also the volume and variety that define big data will be well on their way to unlocking its tremendous — and to a great extent still untapped — value.


Add your comment






#crisis #socialmediacrisis #socialmedia #digitalmarketing #socialmarketing #strategy #influencers #communication #pr #media #ideation #creation #content #planning #culture Snapchat Snap Inc. advertising marketing social media community management brand millennials authenticity Spectacles Wearables customer customer service Paid Media Podcasts Content Sponsored Ads Content Marketing #content #marketing #media #analytics #digitalmarketing #ideation #creation #production DecisionIQ strategy big data personalization Humanizeit Facebook Facebook Live Video Instagram Stories ftc guidelines social influencer social influencers social media influencers social media broadcasting live video Processing prototype prototyping user experience ux technology programming coding java ideas design visual arts mix reality mixed realities data tutorial sketch Twitter Carousel Ads Ad Exchange Programmatic FBX Disney virtual reality projection mapping RFID Tumblr Voice Tone Axure wireframing UX software collaboration Measuring Usability UX Best Practices Designing User Journeys Stop counting clicks Designing for completion Designing for satisfaction Dieter Ram and User Experience Less is more Less but better Influencer Marketing learnability user interface user-created content gaming maker editor Super Mario Maker Nintendo digital media chat bots messaging mobile applications automation F8 Mark Zuckerberg Business F8 Conference Email office agency communication Slack Facebook at Work meetings productivity Wearable tech Healthcare Experience Patient Experience Service Design Strategy Creative Moxie VR Six Flags Six Flags Over Georgia theme parks Samsung Samsung Gear Samsung Galaxy VR headset Oculus Rift Playstation VR roller coasters Dare Devil Drive Websites Web dev development digital reactions emotion analytics dislike social metrics clicks Brands Consumers CPG Retail Consumer Marketing Consumer Insights Super Bowl Commercials Football Cultural Phenomenon Game adtech martec auto-responders automated marketing Experience Design Interaction Design Ecosystem iOS Healthkit Ad blocking Forbes Condé Nast GQ interactive media ad-light hashtags hashflags audience visual emojis campaign management 1-to-1 marketing omnichannel CES CES 2016 Oculus Sony PlayStation uSens HTC special mapping hand tracking games PetBot WonderWoof BowTie Pets OTT digital distribution Netflix Reed Hastings on-demand #yearahead #2016 #newyear #2016predictions #digitalstrategy #modernism user-generated content UGC Consumer Connection Integrated Marketing Manufacturers Accessibility usability engagement rate disability awareness creative process creativity fail fast hiring ideas imperfectionist perfectionist personnel progress test and learn fast casual restaurants social media campaigns QSR social strategies in-store promotions in-store social media promotions successful social media campaigns Logos Typography Branding #CPG #Retail #ConsumerInsights #CRM #ConsumerDirect #Seamless #OmniChannel #MoxieMakers #frontierism #intelligence #architecture insight moments Unit3C FutureX lab innovation open house Q&A UnitFilms 48in48 General Assembly Non-Profit Ponce City Market Branded design technical design style guide wireframes brand guidelines Consumer Products Interactive Marketing GIF social campaign modern marketing Cannes Lions new media pop culture meme Web Accessibility QA media media buying mobile apps targeting wires Advertisers Apple Store EasyPay self-checkout app mobile payment Sporting Events Sitecore CMS delivery Content Marketing Strategy Brand Content Marketing Content Strategy Brand Content Strategy Social Content Strategy Cannes humanity what3words life saving dot Agency Partnership Agency Relationship Competitive Review Millennial Marketers email marketing omni-channel digital marketing esp email service provider process WCAG 2016 Planning Connected Omni AR Commerce Social Innovation Create Content Strategy OMMA MediaPost Internet Week TV & Video Media Planners Creative Conundrum real-time scalability Customization smartphone loyalty advocacy live streaming content democracy Open Source Node.js Cheerio Handlebars Hyperquext MongoDB Atlassian Stash PhantomJS Shopping On-demand economy Sharing economy Everything on demand Instant delivery iPhone App Amazon Now Build Automation DevOps Native Advertising Machina Forrester SXSW Machine Learning Data Streams Web search results Data Platforms ROI Instagram Purchase Behavior Like Content Consumer Channel Role and Purpose ExactTarget Salesforce Cloud Responsys Oracle Silverpop IBM Agency Culture Innovation and Technology Client Relationships Platform Partnerships Ever-evolving Digital Age geo-fencing tablet Android second-screen Austin FOMO Meerkat scaleable vector graphics Flash animation interactivity code browsers uber-savvy consumers integrated digital-connectedness Valentine's Über Bloom that Open Table Waze marketing research google music art sports illustration sculpture food green entertainment movies photography real time marketing cheat sheet smart homes vine print 3d printing street art painting fashion influencer movie billboard outdoor mobile wallet toys film halloween history space films cars anniversary


Error: All fields are required.