Why retailers are upping their investments in data infrastructure and advanced analytics

by | Aug 5, 2022 | Technology

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As organizations continue their economic recovery efforts from the woes of the pandemic — and many look for new ways to gain competitive advantage — there is growing interest in advanced analytics and data infrastructure tools.

Most in demand are data tools that improve predictive and behavioral analysis, and that enable real-time data analysis.

One industry that is investing heavily in data infrastructure and analytics is the retail sector, including the convenience store segment. If that sounds surprising, consider this: As the country moves toward eliminating fossil fuel-based vehicles, which will eliminate a significant portion of the industry’s revenue stream, a large percentage of convenient stores sell fuel, and that’s typically the biggest money generator.

To get a better sense of where retailers are investing, VentureBeat spoke with David Thompson, founder and CEO of 3 Leaps LLC, a company that helps businesses accelerate and scale automation using a data-driven approach.

Doesn’t everyone have their own data scientist?

While it’s difficult to generalize, Thompson said the primary drivers of data infrastructure investments have been to increase retail channel performance through higher trip frequency and higher basket rates. As the name implies, the term “basket rates” refers to the number of items that a customer places into their carts, whether an actual shopping cart or a digital one.

“In certain subsectors, there has also been a large investment in live chat or other customer engagement tools to increase responsiveness and lower cost-of-presence,” Th …

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