Use of Big Data in the Process of Customer Segmentation in the Retail Sector

Abstract

The study has clearly demonstrated the role of big data analytics on customer segmentation in the retail sector. The customer segmentation can be defined as separating consumers depending on previous purchase behaviour. In this study retail markets took the assistance of big data analytics to gather lots of information about their targeted consumers. In the literature part of the study, it has been clearly demonstrated that the segmentation of consumers is necessary to enhance the sales value of the retail market. The retail marketers also took the assistance of automation, cloud software, and AI to collect data of consumers for business purposes. The literature part also helps to understand that a lack of expertise in management systems can lead to gathering wrong data of consumers and it may impact negatively the retail market. The methodology part of the study is an essential factor to obtain an appropriate result. In this context, a descriptive research design has been chosen to conduct the study. In addition, the methodology part also took care of the authenticity of the research. A deductive approach has been selected for this study. The data has been gathered with the help of a secondary data collection method. The discussion part has evaluated that the retail market has grown a lot depending on digitalisation. Retail marketers have been using big data to understand market trends and also trying to understand consumer purchase behaviour. Keyword : Customer segmentation, big data, AI, consumer purchase behaviour.