Big Data trends in Retail Industry
With huge amounts of data being generated by
customers, BD analytics are now being applied at each and every stage of the
retail process. This can be from – working out what the popular products will
be by predicting trends or forecasting where the demand will be for those
products. Also, they can be used to optimize pricing to gain competitive edge
and identifying the customers likely to be interested in them.
The various applications include –
· Market Basket Analysis
This is one of the standard techniques being used
by merchandisers to figure out which groups, or baskets, or products customers
are more likely to purchase together. It’s one of the oldest business processes
and now it can be automated with big data.
· Recommendation Engines
By training machine learning models on legacy data,
the website can generated accurate and more personalized recommendations for
Big Data can also play an important part in helping to determine
when prices should be dropped – known as “mark down optimization”.
This is being used by giant retailers such as Walmart, Target to determine
the right time to determine the rise and fall of demand for a product, thus
resulting in making the right decision on when to increase or decrease the
price of a product.