Big Data becomes Smart Data, and data becomes a driving force
Future of Retail
In this information-society age, data is an important commodity and an omnichannel method is the key to using it. The amount of data being stored is constantly growing. Every day, new data is being created regarding habits, movements, behaviors, and interests. The large-scale production of data, which is now carried out using sophisticated sensor and processing technology, is transforming the old “Big Data” trend into a new trend known as “Smart Data.”
Sensor technology used by the Bavarian company RetailQuant helps recognize customers’ shopping motives and product preferences using intelligent data analysis algorithms.
The collection and accumulation of purchasing data enables targeted “next-best offers” to be created at the cash register as well as online, in a bid to encourage customers to return to make further purchases. This works best when data is collected from various distribution channels (omnichannel) and combined and used as far as possible throughout the customer journey. Branch stores are fitted with digital touchpoints, such as smart shelves, mirrors, or changing rooms, allowing the selection of goods on offer to be tailored to the individual.
Image source: https://www.retailquant.com/
Cross-channel customer management allows retailers to use customers to their full potential. The future of retail is therefore much more data driven than today. Using data to link the online and offline worlds creates enormous potential for retail. The prepaid industry can be a valuable partner for accumulating data in this process, as it is linked to the most important points of the retail value-added chain and can help in particular with the (anonymous) collection and analysis of data from payment transactions. Knowing how, where and why customers have spent their money provides valuable insights into what customers will buy in the future.
“The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic.“
– Peter Drucker
In the age of digitalization, the retail trade in particular is facing fundamental changes and has the opportunity to develop smart further.
With Volker Patzak’s lecture, you can immerse yourself in the causes of the digital revolution, the current trends in retail, the resulting challenges and the future of retail.
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