Consumers favor responsible use of retail intelligence
Consumers are well aware of the fact that merchants are leveraging retail intelligence in order to gain more insight into target audiences. Retail has less to do with possessing the next big product and more to do with figuring out what people actually buy. Yet, no two customers are the same; their preferences may vary considerably even if they shop at the same store.
Although gathering data on each and every consumer – whether through POS software or video surveillance – allows retailers to offer their patrons personalized offers and better service, these tactics have stirred apprehension among critics.
How is it used?
Edith Ramirez, a reporter with KESQ News, noted that organizations have the ability to record every decision a consumer makes whenever they visit an e-commerce site or enter a brick-and-mortar store. As one can imagine, this has caused many people to assume the worst of those using data collection and analysis tools. Popular literature such as George Orwell's "1984" has engrained the cultural idea that large entities engaged in such endeavors have ill intentions.
In reality, big merchants utilize retail analytics to solidify customer retention. For example, people have dozens of options when it comes to looking for a pair of jeans,whether those choices reside with online vendors or in physical outlets. It's easy for companies to lose a consumer's favor when he or she has a poor experience, so they need to use every resource available to figure out what makes groups and individuals happy.
Covering bases on a faster basis
Forbes contributor Walter Loeb acknowledged that people aren't as helpless as they think when it comes to being the subjects of data aggregation. Seemingly omnipresent merchants are at the mercy of those with virtually unlimited alternatives at their disposal, and failing to connect with consumers on a more personal level and blatantly misusing the data collected on them can have drastic consequences. Loeb cited Sears' recent customer retention failures:
"Over the years, especially under current leadership, the company has ignored preferences. Management has no understanding of what the customer wants."
Though Sears' missteps are likely the result of poor, ineffective research endeavors. Loeb noted that the merchant has given up control over core brands such as Craftsman tools, Kenmore appliances and Die Hard brands, which are now available for other merchandisers to sell on their own shelves.
Retail customer intelligence isn't about Big Brother-like surveillance, it's about surviving and thriving in a world in where customers call the shots.
