A Technological Approach To Understanding Consumer Behavior
First off: what exactly is big data? As defined by Google, big data is: “extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.” This sounds more like sociology than picking up a loaf of bread, but it does have big implications when it comes to buying habits.
Grocery stores are bringing together transaction history with data like demographics, social media activity, geolocation, consumer behaviors and learned personal preferences to predict purchasing points. This collection of information is readily available and permits companies to predict a consumer’s next purchase, giving them a chance to incentive them with an offer or coupons. It also allows companies to send messages to help customers complete their next purchase.
A simple example of this from outside the grocery industry is getting an email from a store like Gap, clicking on a product and visiting the website. Maybe you add a few items to your cart, but you never make the official purchase. Then later on, sponsored ads for Gap appear in your Facebook feed featuring the products you already viewed. This is big data, always computing, tracking and predicting consumer behavior to see how they can get you to complete that purchase.
That’s not all that big data provides for grocery chains. It offers a lot of perks that are building a promising future. It can help prevent customer loss by providing better customization of marketing activities, pricing and customer service. It also can help smaller and independent retailers to compete more effectively with larger chains. With all of these capabilities, it will ultimately build consumer loyalty and increase revenue.
Approximately 64% of all retailers have made financial gains in customer relationship management through Big Data. Grocery store chains like Kroger and Raley’s are already utilizing this to their advantage already. With the effective use of Big Data, grocers can concentrate on improving the overall shopping experience and drive revenue like never before.
For more information on how to optimize your marketing techniques and how to effectively improve your outreach to consumers, contact donovan connective marketing at: 717.560.1333 or http://www.donovanadv.com.