Have you ever wondered how companies can afford to sell off their products at such low prices during the massive sales events, such as Black Friday or Cyber Monday? As you can suppose, none of their decisions is made randomly. To prepare for such events, retailers need to build a detailed pricing strategy, conduct customer segmentation and, most importantly, constantly collect the data on the purchases and customer engagement.
Here is how big data influences Black Friday and Cyber Monday.
How the Use of Data Changed over Time?
Retail has always relied heavily on big numbers. Traditionally, to prepare for the next season, stores focused on historical sales data to develop discounting strategies. If they saw that the sales could not beat the previous year’s digits, they would simply drop the prices. They would set the prices lower than those offered by their competitors, or address the needs of the consumers who could not afford their latest products by giving them huge discounts on the last-season models. Even though they still rely on these practices, the way retailers analyze their market and choose their prices has radically changed.
However, with the growth of advanced tech solutions, these businesses have taken some more intuitive factors …