Walmart is the largest retailer in the world with more than 11,000 stores in 28 countries. For millions of people in all continents, Walmart is one of the best places for shopping. More than 260 million customers visit the distribution network weekly. If Walmart were a country, then in terms of its GDP, it would have taken the 28th place in the ranking: the revenue of the retail giant for 2016 was $486 billion.
The secret of this success is a well-thought-out business strategy and the ability to analyze big data. Walmart is one of the first brands in the world to start working with big data. The strategy proved its efficiency: the company has the highest sales per square meter, the fastest inventory turnover and high operating profit.
Today, Walmart is building the world’s largest private cloud, capable of processing 2.5 petabytes of data per hour. To analyze such a huge array of information, the corporation created the analytical hub Café data. It is located at the headquarters of the retailer in Bentonville, Arkansas.
In total, Walmart Data Cafe processes almost 25 thousand requests per hour. Moreover, more than 90% of requests are analyzed within the first 2 seconds.
The high speed of information analysis has reduced the probability of personnel error. In addition, reducing the time to solve a problem, even by a few minutes, as a senior analyst at Naveen Peddamey notes, saves the company millions of dollars.
Thanks to Big Data, Walmart can reveal hidden patterns in customer behavior. For example, the company found that sales of beer and baby diapers are somehow interconnected. Placing these two types of goods closer, the store noted an increase in their sales.
In pursuit of innovation, the corporation has created WalmartLabs, whose team is developing new ways to use big data in retail.
One of their most successful projects is the Social Genome, designed to improve the effectiveness of advertising in social networks. Special software analyzes billions of Facebook posts, Twitter tweets, YouTube videos, Pinterest images, LinkedIn reposts for Walmart products. The data obtained allow you to target advertising as accurately as possible.
Walmart pays considerable attention to the development of brand loyalty. In addition to the traditional promotional-discount methods, the retailer actively uses mobile technologies. Mobile application with navigation through the sales area, monitoring the availability of goods in the store, payment for goods using a bar code, and in the long run shopping cart management is one of the most popular applications in all stores.