Let’s be honest: if someone told you that Pop-Tarts (a type of snack in the shape of a pastry) and beer were the most purchased items before a hurricane, you’d probably laugh and say “That’s got to be a joke, right?”. But for Walmart, this seemingly meaningless combination is a clear example of the power of data analytics and its ability to predict human behavior in the most diverse situations and contexts.
And no, it wasn’t just a lucky shot. Walmart’s data scientists, using sophisticated algorithms, analyzed years of shopping trends during hurricane periods. They identified patterns, correlations and insights hidden within large volumes of data. Observing how the anticipation of power cuts, the need for quick and easy meals, and the desire for family comfort in uncertain times translate into Pop-Tarts and beer.
Against data there are no arguments
The truth is that the need for reliable information and critical thinking is timeless. Whether solving a mystery, making a business decision or navigating personal life, Sherlock Holmes’ principle of “no bricks without clay” remains relevant.
Armed with data on the increased demand for Pop-Tarts and beer during hurricanes, Walmart made a different move. It redirected trucks, loaded with pallets of Pop-Tarts and packs of beer, to stores in the path of the hurricanes. The gamble paid off handsomely. The shelves devastated by the storm emptied faster than a free pizza buffet, and Walmart emerged as a hero, ensuring that its customers were well stocked for the long and possibly dark days that followed.
More than profit: empathy
The story of Pop-Tarts and beer has become an emblematic case of the power of big data. It showed how companies can leverage information not only to anticipate customer needs, but also to empathize with their anxieties and desires. In addition to profit margins, Walmart’s proactive approach ensured community preparedness and a sense of comfort during a stressful time.
Of course, the actions applied on the basis of data analytics are not without their critics. Some raise concerns about the ethical implications of using personal data for such targeted marketing.
However, the saga of Pop-Tarts and beer at Walmart also highlights the potential of big data for good. It demonstrates how information can be used to improve companies’ preparation for events and seasonality, support communities and ultimately make life a little easier, even when the skies are stormy.da
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