Customer data can bring big benefits for retailers
After handling a vast amount of information regarding their daily operations – such as inventory processes, financial data and market changes – retailers may be hesitant to add one more type of information to the mix. However, by collecting, analyzing and using customer data, brands are able to see a wide range of benefits. These advantages can come in the form of improved loyalty programs, enhanced product lines and attractive marketing campaigns. Information related to shoppers gives merchants the chance to gain better insight into what their patrons want and need as well as which target audiences to pursue.
Retailers missing out on customer data
Although many businesses are aware of the benefits that customer data can bring for their operations, a large amount are missing out on collecting and utilizing this information. Internet Retailer reported that research from Experian QAS revealed that despite the fact that brands are gathering data about their patrons, 98 percent believe that most of this information is inaccurate. Some of these details include email addresses, past purchases, geographic locations, gender, age and a variety of other factors.
The study also found that merchants are making strides to better use the data they have, as 69 percent of respondents stated they will be investing in solutions that allow them to improve the quality of their consumer information. However, maintaining accuracy of these details will be crucial for success.
"Unfortunately, poor data quality is widespread, meaning that companies are acting on misinformation and hurting daily operations," said Thomas Schutz, senior vice president, general manager of Experian QAS. "To operate effectively across channels, organizations need to have accurate customer data."
Data analytics big among US retailers
Retailers across the United States know how important customer data is for their operations, and Research-Live reported that to gain a better understanding of the information and the individuals it pertains to, many companies are turning their attention to what data can do for them.
The source noted that research from KPMG revealed that 72 percent of retail industry professionals currently use consumer data to make more informed decisions regarding their businesses. Fifty percent of respondents stated that their brands' success highlights the best use of patron information. More focus is being put on technology solutions that can analyze these details and give merchants actionable insight, the source explained.
