As part of the latest Bdaily feature, retail week, we heard from data integration platform Supermetrics, who share their research and insights into how e-commerce retailers can embrace data to increase their chances of success in today’s challenging economic climate. Keep reading to know more…
The e-commerce industry has entered:
With the rise of smartphone technology and the decline of physical stores, the world has entered an e-commerce revolution. This has undoubtedly changed the shopping experience of consumers in recent years.
E-commerce has transformed the retail industry around the world. Online shopping has meant that consumers can enjoy the luxury of being able to buy whatever our hearts desire from the comfort of our homes every day.
Already with 2.05 billion users, that’s a quarter of the population, it’s undeniable that many consumers have been taking full advantage of this prevailing trend. Since it doesn’t seem to be slowing down, it’s important for retailers to ask: How can we best use the new data we get from online shopping?
Understanding Intel can help retailers in several ways. Retailers can use the data to track customer behavior, determine which products are selling well, and identify areas for improvement. Analytics can also help eCommerce platforms personalize shopping experiences for each individual customer.
Data is becoming increasingly important to retailers as the industry becomes more competitive. In order to understand what customers want and need, retailers need to collect information that will be helpful in providing a better shopping experience and staying ahead of their competitors.
Some common analytics tools used in the retail industry include customer segmentation, customer lifetime value analysis, and predictive analytics.
Identification of data through the masses:
Getting a broader picture of the consumer is increasingly important if digital is to remain competitive. Supermetrics recently conducted a survey and found that 67 percent of the industry struggles to identify what information is most useful among the vast amounts of data that is generated every day.
There are various analytics tools available to help retailers sift through this data and gain insights that can improve their business. Implementing the right strategies can help brands tap into large data sets to reveal hidden buying patterns, customer preferences, and market trends.
And by revealing their customers’ buying habits, retailers can realize the value of information and make better business decisions. In fact, the Supermetrics study indicates that large amounts of data can lead to “data inflation” with more than half (52 percent) saying this can negatively affect their business.
Some of the key benefits for retailers using data analytics include identifying patterns in consumer shopping journeys and improving the customer experience, leading to money savings for businesses.
Happy customers and money cuts:
By understanding what customers want and need, retailers can provide a personalized experience that leads to customer satisfaction and retention. By collecting all the necessary marketing data and feeding it into key reporting, analytics, or storage platforms, recurring consumer patterns become discernible.
As retailers learn this information, it becomes vital in helping them forecast future demands and plan for the next twelve months. Retailers can use organized data to determine which products are selling well and which are not.
And based on that, decisions are made about which products to stock and which products to promote, saving money on inventory costs, which could prove vital during a tough economic period.
Key holidays for retailers:
The festive season is upon us, and the pressures of Black Friday, Cyber Monday and even Christmas are making retailers eager to collect the information from the busy peak period.
Many brands are under pressure to collect data on buying patterns in the run-up to Christmas, as we found that 63 percent of ecommerce leaders believe the peak period can decide the future of the business.
The recent announcement that the UK has entered a recession has caused many retailers to become increasingly concerned.
Our survey found that more than 73 percent say it will have a direct impact on their growth, which could hinder their plans for the peak season. Consequently, it has never been more important for retailers to seek help as consumer budgets tighten and the supply chain remains volatile. Therefore, a strong data plan is necessary if they are to weather the storm.
What happens next?:
In the coming years, we can expect to see an increase in data and economic pressures will continue to increase. The challenging period ahead requires retailers to implement an intelligent approach to data to help them not only survive but thrive.
This will mean that retailers will continue to have to closely monitor key trends and changes to help them adapt and innovate to new consumer demands. Leveraging technology solutions will be key for e-commerce retailers to reduce the pressures ahead and stay agile in the face of the latest market trends and consumer expectations.
Data analysis can really help make the necessary adjustments and ensure that the festive season lays a strong foundation for the coming year.
By matthew neville – Correspondent, Bdaily
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