Big data, or large data sets that are analyzed to reveal trends, patterns and associations, is the biggest thing to hit the restaurant and retail industries in the past two decades. Many members of both retail and restaurant sectors rely on data solutions to gain a competitive advantage, advance their sales and improve their marketing ROI by 15-20%.

The Need for Big Data in the Restaurant and Foodservice Industry

Data-Solutions-in-the-Restaurant-and-Retail-Industries-300x236A major pizza chain relied on its mobile app and information from previous mobile marketing to craft a clever marketing message that drove results. They delivered mobile coupons to individuals in the neighborhood where there was a storm-related power outage. The chain knew their customers wouldn’t be able to cook, so they created a generous coupon offer and received a 20% response rate as a result.  This is just one example of how big data can make a difference for your restaurant.

As part of your restaurant, big data tools can help you learn about your menu, customer insights, and server performance. Some details you can easily learn through the right data solutions are:

  • Average spend of clients and visitation frequency
  • Changes you can make to your menu to increase sales
  • Clients’ online reviews, especially what they don’t like and how to get them back
  • Difference between new customers’ and repeat customers’ visits
  • Dishes that are most popular and may bring patrons back to your restaurant
  • Inefficient servers who may be driving down sales
  • Items on your menu your customers prefer
  • Menu item placement and descriptions that can impact sales
  • Servers’ ranks based on turn time, tips, etc.

Why the Retail Industry Needs Big Data and Solutions to Analyze it

Target made headlines when it decided to use big data to boost its sales. The retail chain correlated its baby shower registry with its Guest ID program to determine whether or not the shopper is truly pregnant. Target’s software processed purchase history, credit card use, customer support data, survey responses, email click troughs and much more.

By combining this information with purchasing demographic data such as age, marital status and estimated income, the retailer learned about changes in shopping habits as women progressed through their pregnancies. For example, women purchased more supplements during their first 20 weeks. As a result, Target was able to target this segment better and ensure more profitable business transactions.

In addition to allowing you to detect profitable ventures, data solutions help in identifying losses from shoplifting, employee fraud, organized retail crime, and administrative errors. Some custom applications can help fraud analysts discover and isolate factors such as inventory losses, incidents of single employees reporting shoplifting without other witnesses, patterns of overages and shortages at the register, unusually high instances of refunds, and patterns of increased sale of one item while losses occur on more expensive items.

With the help of business reporting applications and big data tools, you can make sense of patterns and prevent internal losses by narrowing it down to likely suspects or external threats. As a result, you can save over $110 billion annually (1.4% of retail sales) according to the Global Retail Theft Barometer.

 

As big data increases in size, so will its popularity. Therefore, you need to embrace this new paradigm if you haven’t already. To ease you into the extensive world of big data, allow us to introduce our highly innovative business intelligence reporting software: Xformity. Designed to provide you with the reports and dashboards you need to succeed, it allows you to learn every detail about your business, starting from sales to labor. Used in national chains such as Meineke and Denny’s, Xformity is also available for your mobile, ensuring that you know about everything wherever and whenever.

Find out how Xformity can make your restaurant or retail chain thrive today. Request a customized demo to see why a majority of our clients swear by our data solution.