Big Data Seen Creating Value

DATAPOINTS May 7, 2013 BIG DATA SEEN CREATING VALUE Big data is creating value for retailers in several ways, but the most important is supporting faster fact-based decisions, according to a report from Brick Meets Click, which surveyed 110 consultants, retailers, wholesalers and others involved with the use of shopper information. About two-thirds of respondents are actively involved in a big data project. The top barriers to retailer use of big data all in- volve organizational capabilities, not technical constraints, the report found. SOURCE: Brick Meets Click Top Data Sources* Marketing Supports Big Data (division that is sponsoring big data projects within each company) Opportunities to Drive Demand* (multiple responses allowed) (multiple responses allowed) Shopper-identified transactions (loyalty, payment card, etc.) 52% 76% 70% 16% Merchandising Mobile devices 44% 49% Marketing 13% 43% 38% In-store tracking 39% Other* Shopper feedback 32% 11% Operations 11% IT Social media 24% *Includes research and development, executive management, supply chain, and sales/category management. *Where big data will create value in the next two years *Sources identified as having high potential for improving retail performance. 87 POS Data Supports Supply Side 51% POS Transactions 13% Other (Data source cited as most valuable for supply chain) 10% of respondents said big data was at least some- 18% Shopper Feedback what likely to improve workforce management Sensors in retail environment Automated product recognition Barriers to Big Data "In less than a year we've seen big data evolve from the province of data scientists to a tool that's creating value on both the demand and retail sides of retailing." (multiple responses allowed) Concern about not using data already available...58% Lack of capability to implement insights... 57% Not enough specialized expertise.. 50% – BILL BISHOP, chief architect, Brick Meets Click No available budget.. 38% Difficult to collect data.... 35% Creating Value 65% (Top 3 ways big data creates value for retailers; multiple responses allowed) Inability to track key metrics... .33% Concern for privacy and security . .29% 43% 69% of respondents said marketing to individuals (vs. shopper segments) will be the focus in the 21% 11% of respondents say they are involved in a big data project Supporting Including faster decisions Creating single data next 2 years. new data sets source Strengthening Shopper Engagement Creating Personalized Promotions Enabling More suoņnjos jaddoys Implementing Store-Specific Assortments