Small businesses should follow the lead of their larger counterparts by harnessing the power of big data to better understand customer buying trends and increase profitability during busy holiday periods.
This is the word from Yudhvir Seetharam, head of analytics for FNB Business, who says there is no question about the effectiveness of big data when it comes to driving sales.
According to Seetharam, small-medium enterprises (SMEs) can learn a lot from big retailers that have leveraged big data to develop an art and science for packaging and displaying products on store shelves.
Retailers have gone the extra mile to use big data to better understand customer behaviour and preferences, he states.
"As customers become more sophisticated, it is important for SMEs to start using platforms like big data to gain a competitive advantage. They will not only increase sales, but attract new customers and retain them," says Seetharam.
"By knowing which products customers spend their money on, SMEs are able to enhance the effectiveness of their marketing efforts by promoting the right products to the right customers," he says.
Seetharam notes that business owners usually analyse historical data to figure out peak and off-peak times for sales, and use the information to determine trading hours for the festive season. That is why a lot of retailers open stores earlier and close a lot later, he says.
"From a customer demand perspective, businesses often plan ahead by identifying the peak time for sales and the products that customers spend most of their money on," says Seetharam.
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