Retailers urged to do better on big data
In this article (4)
Retailers such as Myer and Woolworths have been urged to quiz customers when they leave stores empty-handed and grill shoppers who spend money at rival chains, to achieve better returns on their investment in big data.
Spending on data analytics is rising by 30 percent a year and is forecast to reach USD114 billion by 2018, according to global consulting firm AT Kearney, but only one in 12 companies is achieving a satisfactory return on its investment.
“There’s massive investment in analytics, everybody says it’s a strategic imperative, everybody believes it’s something they need to do in order to be competitive, but between 75 percent and 90 percent of people are dissatisfied with the returns they’re getting,” AT Kearney principal and analytics expert Ian St-Maurice said.
Questions & Answers
Q.What specific actions are retailers being advised to take to improve their big data returns?
What specific actions are retailers being advised to take to improve their big data returns?
Retailers are being urged to question customers exiting stores without making purchases. They should also quiz shoppers who spend money with competing retailers to better understand their behaviour.
Q.What is the scale of investment in data analytics globally, and when is this forecast for?
What is the scale of investment in data analytics globally, and when is this forecast for?
Global spending on data analytics is growing by 30 percent annually. It is projected to reach USD114 billion by 2018, according to AT Kearney's figures.
Q.What is the general sentiment among companies regarding their return on big data investment?
What is the general sentiment among companies regarding their return on big data investment?
A significant majority, between 75 percent and 90 percent of companies, are dissatisfied with the returns they are receiving from their analytics investments. Only one in twelve achieves satisfactory results.
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