Lets take the recent thanksgiving holiday shopping weekend for example.

(source: http://truthcentral.mccann.com/truth-studies-blog/twelve-truths-of-holiday-shopping/)
Consider the infographic on the left from a McCann report on big data analytics. The infographic contains data on a survey done on 10,000 people across eleven countries. The survey asked users how they will be shopping this holiday season and although majority of them still prefer in store shopping, online shopping and even mobile shopping (includes tablets) has been on the rise over the past couple of years.
This means there is going to be a substantial increase in data coming from all these different data sources. Businesses looking to improve sales or just looking to spot the latest shopping trends need to seriously start investing in some form of data analytics in order to take advantage of this growing trend. An example of this is point 4 of the infographic where almost half of the young consumers surveyed felt they would prefer certain stores to pick out their gifts rather than a person gifting them. Also important to note is point 3, where a third of the consumers surveyed globally would outsource their holiday shopping if they could. Who better to do this than the businesses providing the goods to the consumers!
Most important point out of this infographic is the 1st point. Consumers are making use of social media to talk about their holiday shopping and even talking about the kind of gifts they would like to receive over these holidays. This should be a signal to businesses to make use of big data and data analytics in order to better serve their customers.
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| Source: Lowes.com |
Take the example of Lowes. They collect data across several channels, online and offline, which they then use to offer product recommendations to drive more sales. Consider a customer that purchased a kitchen appliance, Lowes takes this information and provides additional recommendations of similar products or companion products that can help them in remodeling their kitchen. This is a good example of how analytics can be used to predict customer needs in order to better serve your consumer base as well as driving sales at the same time.
Consider another program piloted by IKEA in association with Yahoo! and Acxiom. They wanted to track the impact of online marketing had on in store sales. They matched Yahoo! IDs to IKEA's own customer data and were able to create specific user profiles which could be used for targeted advertising. Additionally IKEA was able to track the relative success of the online marketing ads by comparing in store purchases of users.
This IKEA program brings up an important point when it comes to online marketing campaigns. Consider this Yahoo survey where consumers said, compared to general ads, personalized ads tend be more engaging, educational, time-saving and even more memorable. Also users have begun to complain about whats know as "discount fatigue" where consumers are getting bombarded with generic promotions that do not fit the user needs. This is a prime opportunity for businesses like IKEA to make use of big data to provide a better end user experience.
In conclusion, we would like to list out a few ideas taken from the huffington post article on how brands can better use their data to provide more engaging marketing to consumers:
- Predict their holiday shopping list. Can you determine the attributes of who they bought for last year and recommend gifts that are popular among people with similar traits. Instead of promoting your line of kitchen gadgets, inform loyal customer Myles, who purchases for a novice at the holidays when he himself is rather advanced, about recommendations on beginner products, cooking classes or recipes that would be perfect for the budding chef on his list.
- Understand who is likely to host holiday events at their home, known by their social graph and items purchased. Use this information to help the stressed holiday hostess with tips, recipes, ideas to entertain the kiddos, playlists, etc.
- Know how much they are likely to spend. Look at your customers' spending habits throughout the year and past holiday seasons to determine the size of their holiday budget. Yes, we all would love to buy the 900 cashmere throw, but which of your customers are the ones who could afford this? Target only your big spenders with this, while more reasonable items to the rest of us.
- Recognize habits. Understand customers' habits and when they are likely to shop (i.e. Michelle is an early bird shopper, while Laurie waits for the very last minute). Does Joel pass by your store during your commute? Then don't send a geo-targeted ad to them on a Monday when he is heading to work, but try to entice him one evening after work with personal gift recommendations.
References:
1. http://truthcentral.mccann.com/truth-studies-blog/twelve-truths-of-holiday-shopping/
2. http://www.godigitalmarketing.com/big-datas-big-role-holiday-sales-nationalblog/
3. http://www.huffingtonpost.com/puneet-mehta/a-lesson-from-glengarry-g_b_6255342.html















