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SMILE, You have got a Coupon !!! Big Data for Digital Marketing & Moment of Truth !!!
SMILE, You have got a Coupon !!! Big Data for Digital Marketing & Moment of Truth !!!

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Retailers are perpetually coerced to survive only on economies of scale and thin margins. This blog post highlights how retail organizations can use Big Data and Analytics to catapult their digital marketing initiatives to a whole new level. 

The novelty and excitement of Big Data have embraced one and many – especially retail organizations, always fighting for that extra edge over their competitors for targeted sales. Razor-thin margins, cost-effective delivery, item perishability, etc. just add more challenges to the mix. One of the dreams of every marketing manager, or for that matter the store manager, is to achieve the 4P nirvana: make the right product available with the right promotion at the right place and for the right price.

Guess what? With the help of smart data management and analytics, this dream may finally become a reality. Select vendors are testing in-store physical retailing using digital advertising right at the very moment when a client is in the middle of his or her shopping experience. Using a combination of product identification (through RFID and advanced 2D scanning), a slick in-store media network, and a practical implementation of location-based tracking, retailers are getting closer to deliver highly personalized content to their myriad in-store shoppers.

So, how does this work? The concept behind digital marketing is very simple: understand your client at their moment of decision, and offer them discounts and deals based on what they are looking for: right there, as they are filling their shopping cart. So for a shopper, let’s say a mother of middle-aged kids visiting her local department store looking for high-velocity items, such as bread, milk, or veggies, can be profiled based on two key factors – what she traditionally shops (historical behavior) and her movement inside the store indicating what she is currently scouting for. Based on an advanced data analytics engine running behind the scenes, brand marketers can target her with specific coupons, offers, discounts, pertinent to her needs. All she would then need to do is to go to her nearest digital display, touch a button and get the discount added to her shopping card right there and then, with no fumbling of paper coupons or any other jugglery required. The targeted content would completely change as she is shopping for low-velocity items, such as detergents or house supplies, although the concept would remain the same. This targeted digital marketing can completely change for a different customer profile, say an elderly couple is looking for their weekly supplies, or a teenager rushing through the store to buy a relatively cheap-priced brand.

The possibilities out of these are endless and have got both the retailers and the brand manufacturers excited. Not only does this method provide a more focused, targeted approach towards marketing, but it also significantly increases brand loyalty and customer confidence. The icing on the cake is the amount of rich, valuable big data captured throughout the movement of the shopper through the store, providing valuable insights into customer’s psyche based on their profile and buying patterns.

The next obvious question is: how can this be implemented? Like with everything in the digital world: this is easier said than done. To start with, there needs to be specialized infrastructure in place. A digital planogram for the store needs to be mapped through specialized software, specialized tracking hardware needs to be installed in the store, and a slick media network that can render specialized content (coupons, deals, promotions) to the interested customer. Also, the ISP (in-store processor) in the retail backrooms needs to be robust enough to capture the high volume of data that needs to be captured through the back and forth motion of the shopper’s cart. However, most of the complexity and costs required to install this is one-time and fixed!

However, the rewards more than justify the means! Even the historical, non-real-time value of this data is of tremendous value. Big data captured by the RFID sensors is a treasure trove to be stored and mined over relatively long periods of time, to understand the demographics and buying patterns relevant to that store, and possibly to that region.

 

 

Author – Samir Kumar Sahoo,  CEO & Co-founder of Aptus Data Labs. Samir’s focus on building business solutions on Manufacturing, Supply Chain, Retail & CPG using data, cloud, AI, and emerging technologies

 

 


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Samir Kumar Sahoo
CEO & Co-Founder

An experienced technology and business leader with a demonstrated history in the data & advanced analytics field.

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