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  • Writer's pictureBhagyeshwari Chauhan

How These 4 Major Retailers are Using Big Data Analytics to Run a Profitable Business

Updated: Feb 7, 2021

With the trend of big data having swarmed the market, everything is about being three steps

ahead in the game. Companies like Uber, Netflix and Amazon have been pioneering in their

fields by using insights collected from data analysis. They use big data for everything. Right

from product development to predicting what kind of movies will have the audience glued to

their sofas.

So how can you leverage big data analytics to your advantage?

Here is a list of companies that are doing the big data dance just right. Perhaps you could take some inspiration from them.

1. Costco- Because of love warnings

A California fruit packaging company warned Costco about the possibility of listeria contamination in its stone fruits like peaches, plums etc. Instead of sending a flat-out warning, that would reach everyone, Costco approached the specific customers who had purchased those fruits. They did so by phone notification and then followed it up by a letter.

Costco has been collecting data long before the buzz word ‘bigdata’ came into the scene. Their passion for details and efficiency even enabled them to help the Centers for Disease Control pinpoint the source of a salmonella outbreak of 2010.

2. Target- approaching pregnant mothers before they shared the news

It all started with Target wanting to be the number one in their field. The big-data scientists at Target were asked to come up with a way to figure out how they can hook pregnant mothers to do all their shopping at target.

The problem is that once a baby is born, his birth is a part of public record. Now that everyone has access to it, all the retailers can approach the mother and try to persuade her to buy their products.

Target, however, decided to analyze the buying pattern of women. A woman buying large quantities of unscented lotions, cotton balls, washcloths, and supplements means that she might be pregnant. And if they can get her shopping at Target for all her needs before the baby is born, chances are that they have a loyal customer for life.

This case study really woke the brick and mortar stores to the wide possibilities of big data applications.

3. The Weather Channel- Taking advertising by the storm

Till now, you might have always thought that The Weather Channel is really just about the weather. But the reality is, that it goes much deeper than that. With its data platform, location FX and Weather FX, The Weather Channel can monitor the viewer’s emotions and see what kind of impact weather has on the viewer’s emotions. These insights can then be used by advertisers, to position their ads in a way that spur action.

In one such collaboration, The Weather Channel predicted the high humidity in the air and Pantene Walgreens advertised products for a frizz-free hair, leading to a 10% increase in the sales of Pantene.

4. Red Roof Inn- A roof over your head

One of the most horrible feelings at an airport is seeing that your flight has been canceled. The first question that pops into anyone’s mind is, “where are we going to stay?”

Red Roof Inn capitalized on this opportunity having a large number of hotels close to major airports.

During the busiest flight seasons, the marketing team ran a campaign that took into account the weather conditions and a number of flight canceled and advertised in the areas where the chances of canceled flights were the highest. They ended up generating a 10% increase in sales in those areas.

Abovementioned companies illustrate the power of big data to run a profitable business as well as serve your customers well. To skyrocket your business’s profitability with the aid of big data analytics, contact us at Datahut, your big data experts.  

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