Collecting Big Data and Checking it Twice

On Black Friday alone, more than 89 million people visited retailers, according to the National Retail Federation. But it’s not simply the traffic that is startling, it’s the data those shoppers produce. According to Forbes.com, each of those shoppers generated up to 10,000 data points. That equates to more than 890 trillion (that’s 12 zeros) points of retail data in a single shopping day.

For most retailers that data is irrelevant, the only figure of note is the sales total. This singular focus is a huge mistake. Retail data has the potential to uncover insights that can equally impact retailer return. From the transaction log to the loyalty card, each data point provides value and context to the overall operational success. When properly harnessed, retail big data has the potential to uncover practical opportunities and inefficiencies to radically improve retailer bottom-line performance.

Here are three tips to help retailers increase their holiday profits by leveraging this data:

Beware of Seasonal Sweethearts – the increased store traffic and transactions associated with the holiday season can provide employees with an ideal cover for some holiday gift giving of their own, through unauthorized giveaways at the point of sale. By integrating transaction logs with video surveillance, advanced retail analytics programs can to identify these transactions and immediately notify retailers to prevent further loss.
Eliminate Promotional Problems – promotions are a common marketing tactic during the holiday season, but amid the chaos of the holiday rush, promotional glitches are either ignored or improperly addressed. In an effort to expedite the check-out process employees often improvise to create the appropriate savings for the customer. These makeshift solutions create major inventory problems and inaccurate sales representations. However, retailers that are effectively harnessing their data are able to identify these issues and resolve them the right way.
Recognize the Refund Realities – post-holiday refunds are common, but without the proper monitoring in place this can be another source of loss for retailers. According to Consumer Reports, nearly 20 percent of Americans make at least one holiday gift return, creating a high potential for fraudulent returns. Whether it’s knock-off merchandise or a return without a customer present, integrated retail data technology will empower managers to effectively identify these instances and prevent repeat offenses.

The fact is, retail data isn’t going away anytime soon, and with the increased in-store traffic this holiday season, big data is getting even bigger. Rather than ignoring it, it’s time for retailers to embrace and leverage the data they’re already collecting in order to maximize their performance and profitability.

derek_rodner

About Derek M. Rodner

Derek is the vice president of product strategy at Agilence. Derek’s prior experience includes strategy for open source database technologies, enterprise-class servers, and mid-range ERP software. Derek is currently spending his time at Agilence working with retailers making the transition to big data environments and helping to shape the next generation of solutions. To learn more about Agilence’s Retail 20/20 solution for Big Data, contact Derek at This email address is being protected from spambots. You need JavaScript enabled to view it. or learn more at www.agilenceinc.com.

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