With consumer behavior becoming more erratic than ever, data analytics are crucial for future success in the grocery industry. According to a recent article on brick meets click, grocers need to catch up with other retail sectors and embrace analytical tools that offer both cost savings and the benefits of knowing their customers.
Using analytics, grocers can severely reduce their marketing budgets by incorporating digital strategies aimed at individual households. These tactics could include sending digital coupons and targeted email campaigns. In order to effectively attain these cost savings, traditional grocers must establish digital relationships with customers, collect purchase information, and segment customers based on value.
Being able to know customers purchase habits, preferences, and anticipate future needs is an indispensable benefit as well. Using big data, grocers will be able to know customers repurchase cycles as well as identify defecting customers and react with preventative measures in order to retain their business. This can increase sales, keep customers loyal, and even reduce costs even further.
BMC states that “It’s time for grocers who take the long view of success to start mining the data they know has the potential to improve their business”. The need for big data in the grocery sector is here, it is just a matter of who will capitalize on the opportunities it presents.