*By Cesar Ripari
Retail as we knew it is definitely no more. Consumer behavior has changed irreversibly over the past decade, thanks to the easy access to information about products and services, anytime, anywhere. This true digital empowerment is redefining retail, requiring companies in the sector to adapt quickly and continuously to an environment in which customer experience is paramount. And the key to achieving this goal and innovating lies in the strategic use of data.
Having in-depth knowledge of the buyer, their consumption habits and anticipating their needs is mandatory, the so-called “Customer 360” vision. Especially with the convergence of physical and digital shopping channels, in an increasingly omnichannel strategy, consumers expect a fluid and integrated experience, regardless of where they are shopping. And this is an unparalleled opportunity for those who know how to use data and analytics strategically.
Retailers need to know how to carefully analyze their business data and each interaction with customers. Information about online browsing behavior in e-commerce and interaction history (which may or may not result in a purchase) are some examples that can reveal important patterns of each consumer. However, this analysis is not easy, as the amount of information collected daily by retailers is huge and comes from various sources, from service channels, apps and websites, to heat map solutions and in-store flow analysis.
Gathering and structuring all this data in a cohesive and accessible way is one of the biggest challenges we face today. To create a complete view of what consumers are looking for, it is necessary to overcome this fragmentation of information. By integrating all data, companies can transform raw information into valuable insights, which enable faster, more assertive, strategic and customer-focused decisions.
But simply integrating data is not enough. It is essential that the information base has quality and governance. This data needs to go through a number of steps to ensure its integrity, privacy, security and that it is as up-to-date as possible, available in the correct details for the correct user. This process ensures that the data is contextualized, organized and can be used effectively as a powerful tool. These actions directly impact business performance, and if due importance is not given to this process, with low-quality and poorly governed data, the retail “business” will certainly face problems throughout its operation, directly impacting the results.
Playing a crucial role in today’s supply chain, physical stores are transforming into customer experience centers and logistics hubs, going beyond being mere points of sale. During high-demand events like Black Friday, where the ability to handle huge sales increases and highly efficient logistics are put to the test, the need for integrated, governed and quality data becomes even more evident.
It is worth noting that properly analyzed data must be democratized and cannot remain centralized in their silos of origin. Store employees need to have access to contextualized information in real time so that they can optimize processes for more efficient management and make faster decisions directly with the customer, on the shelf or in the back office. This way, there is greater integration throughout the retail chain, from the store to the supply chain, with effective inventory control, fast and efficient logistics and distribution, making shopping experiences differentiated from end to end.
Leveraging large amounts of data from multiple sources enables the industry to take more informed action, reducing waste, improving customer service, and maximizing margins. This new era of retail has automation and real-time analytics at the core of operations, and the customer at the center of strategies. Therefore, the path to a successful future in the industry involves taking data out of its silos, integrating operations, and integrating analytics into the decision-making process. Retailers that adopt this approach will be able to structure and organize this complex data ecosystem to generate business value, building stronger, more lasting relationships with their shoppers, and keeping up with market changes and developments toward omnichannel retail. This is what will determine success in today’s competitive landscape.
* Cesar Ripari is Director of Pre-Sales for Latin America at Qlik
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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