What are the Factors that the Retailers Must Consider While Applying Big Data Analytics

By: Retail CIO Outlook | Thursday, July 09, 2020

The retail businesses are applying big data analytic solutions to benefit from it, but they also need to consider few factors before using it in their present system.

FREMONT, CA: One of the largest and most significant industries worldwide is the retail sector. Every year the sector employs numerous people and generates a considerable amount of revenue. However, due to the recent technological transformation, the retail areas have been affected the most. The retail companies have witnessed immense advancement in the sector, mainly how business is conducted due to the advanced technologies.

Technologically one of the most critical development is the introduction of big data analysis. The retail companies have utilized the benefits of big data to its fullest, and there will be many more advancements in technology in the future, which they can use. Yet, there are also some challenges that the retail industry had to face while applying data analytics in their present system. Here are some of the factors that the retail companies need to consider while utilizing massive data sets.

Collecting Correct Data

The companies must target the appropriate information and utilize the optimal process while collecting any amount of data. If the data's quality is not right, then it can lead to a flawed conclusion and create more issues than benefits. It will be useful for the retailers if they collect data related to customer footfall, stock levels, sales volumes, the efficiency of advertising campaigns, and profit margins. Moreover, retailers will also require specialized software to collect meaningful data.

Use of the Latest Technology

The fundamental part of big data analytics is the technology. The latest advanced technologies, like artificial intelligence and machine learning, had immensely impacted the retail businesses. It has increased the outcomes if the analytics. Therefore, to ensure that the information received from big data is accurate, the retailers can apply the latest technologies. Still, it can be challenging, and the investment can also be expensive.

Fulfilling the Data Protection Standards

There is an on-going movement about the right to secure the privacy of the consumers. It has become challenging for retailers to conform to every rule because of the increasing complicated laws and regulations. Therefore, if the retail companies want to collect analytical data, they have to do it with extreme precautions by keeping the law in mind. Furthermore, it is also necessary to securely handle the data and prevent it from sharing with other parties.