Studies show that almost half of enterprise retailers need help leveraging data analytics. For CPG and retail sectors, the pillars of inventory management, predicting consumer demand and setting prices stand at the forefront, all demanding strong data analytical capabilities. Every day, consumer data is captured, aiming to sharpen these analytics. However, recent studies revealed a concerning trend: nearly half of executives from retail companies making at least $1 billion in revenue pointed out that their firms often invest in new tech solutions that fail to mesh well with their existing data and analytics systems.
Yet, there's a silver lining: the survey uncovered an overwhelming consensus among retailers to ramp up their tech investment in 2024, with plans to boost their spending by an average of 10%. Specifically, 38% of respondents are eyeing the modernization of their infrastructure as a crucial investment. Such a move towards upgrading their data handling frameworks, shifting operations to the cloud, and embracing the latest in AI/ML and instant analytics, paves the way to unlocking the treasure trove of data at their disposal. This strategy aims to sculpt a nimble, data-centric business model that fosters well-informed decision-making and streamlines operations.
Steer Business Strategies with Advanced Data Insights
In a landscape where customer habits and expectations are constantly in flux, nearly half (48%) of large-scale retail companies are enhancing the customer experience at the top of their agenda. By leveraging the latest tech innovations to fully tap into customer data, these retail giants can stay ahead of shifting consumer trends and keep their edge in a fiercely competitive market. Streamlining data governance practices and strategies not only refines business models but also unlocks valuable insights from various sources, including physical store transactions, online shopping behaviors, and social media engagement.
Enhanced data facilitates:
-
Custom-tailored marketing through specific campaigns and suggestions tailored to the consumer.
-
Forecasting demand and streamlining inventory to anticipate seasonal demand shifts, cutting costs by preventing excess stock and refining the supply chain.
-
The use of analytics to boost flexibility, enabling effective decision-making and swift adaptation to market shifts through the analysis of incoming data.
-
Tactical pricing strategies that secure a market advantage and boost revenue by tracking competitor pricing and adjusting to demand changes in real time.
-
Making informed decisions that enhance strategic planning.
Ensuring a Cohesive Customer Experience Across Every Platform
Customers' path isn’t as straightforward as visiting a store or an online retail purchase anymore. It might start with a scroll through social media or a search on a smartphone, evolve as they browse through a website, and finally end with an in-store pickup. Naturally, a whole spectrum of potential interactions leads to diverse customer experiences. Customers anticipate a fluid journey across these various channels. Refining this omnichannel approach presents a significant hurdle for 30% of retailers.
Thanks to updated data strategies, retailers can achieve effective customer engagement, facilitating seamless omnichannel shopping experiences. This insight allows retailers to recognize patterns in customer behavior and maintain uniformity in information across different shopping environments, enhancing the overall customer journey and boosting conversions.
Enhancing Risk Mitigation Strategies
Gathering and analyzing centralized data from diverse sources offers a comprehensive perspective highlighting potential security weak spots. Managing and safeguarding consumer data is a principal concern for one-third of those surveyed. This insight empowers retailers to fortify their defenses and tackle risks preemptively.
Interestingly, only 40% of participants in the survey have adopted big data analytics to safeguard customer details. By employing real-time data analysis, retailers can identify normal patterns and spot irregularities, enabling them to catch unusual activities early. This proactive approach helps prevent fraudulent transactions and promptly alerts consumers about potential identity theft, safeguarding their financial information and nurturing trust.
Boosting Modernization Efforts
Navigating the maze of data modernization demands a blend of technical savvy and a deep dive into big data. For enterprise retailers, breaking down data stored across various silos into a unified, analyzable format is no small feat.
To fully leverage the advantages of modernizing data, retailers must seek IT collaborators to:
-
Conduct a thorough review of their current infrastructure and pinpoint improvement necessities.
-
Craft a bespoke data modernization roadmap aligning with their business aspirations and requirements.
-
Merge data from an array of sources into a cohesive system.
-
Implement cutting-edge analytics tools to decipher this data.
-
Uphold stringent security measures and comply with regulations.
In Conclusion
Adopting data modernization is a game-changer for retailers aiming to redefine industry standards. When customer data remains locked away in outdated systems and isolated, its true potential remains untapped. Enhancing your data infrastructure and management practices empowers your retail business to seize a competitive edge through the strategic application of cloud technology, AI/ML, and sophisticated analytics.