Tech Commentary: Make the Holidays Brighter–With Analytics
By Murali Nadarajah, Xchanging Malaysia
Consumers can purchase virtually anything they want anytime from anywhere, from the Internet to social media to mobile devices to good old brick-and-mortar stores. As a result of today’s omnichannel approach to retail, chain stores now have access to a massive collection of customer data that hasn’t existed until recently.
So what does this mean for chain store retailers? They can better predict consumer behavior and respond in real-time to consumers’ individual needs by analyzing this data. And especially now, as we get further into peak season, the insights gathered can be a game changer in deciding which retailers come out on top of this year’s holiday rush.
Whether through a smartphone app, store associate or instant chat on the website, to understand how the buyer expects to be spoken to in today’s world, retailers need to delve deep into their customers’ shopping patterns. Let’s take a closer look at the types of analytics that chain store retailers should be paying close attention to this holiday season, all of which could hold the key to not only improving customer experiences, but increased operational efficiency and profits across multiple areas, as well.
Customizing the Customer Experience with Predictive Analytics
There is a growing focus among retailers on understanding customers’ personal characteristics and shopping preference–the traditional one size fits all approach can no longer address the unique requirements of today’s empowered and informed customers.
Chain store retailers can capitalize on this shift by analyzing predictive analytics, which leverages data generated from social media, feedback forms and point of sale systems to extract relevant information related to customers’ preferences. By using this powerful data, retailers can better manage their back-end operations by accurately forecasting future demand, creating a real-time supply chain to engage customers more effectively across regions.
Accessing Difficult to Reach Shoppers with Marketing and Customer Analytics
With predictive analytics, chain store retailers are armed with valuable data that can be utilized to personalize the shopping experience for existing loyal customers. To attract new customers in today’s hyper-connected world where they are constantly bombarded with messages from a variety of channels, it’s more difficult than ever to grab–and keep–their attention.
By leveraging marketing and customer analytics, chain store retailers can draw in these difficult-to-reach customers. Analyzing real-time customer data–obtained through sentiment analysis and understanding motivators of buyer behavior to predict their response– will allow retailers to collect detailed insights on customer preferences and introduce targeted marketing campaigns by varying the look, messaging and tone for the intended customer set.
Engaging More Intimately with Customers as a Means of Building Loyalty
After customers are acquired, retailers can use analytics to consistently engage with them throughout their lifecycle, converting them into loyal brand advocates over time. This data also allows for measuring, managing and analyzing a marketing campaign more efficiently.
Enjoying the Gift of Analytics
There is a huge opportunity to achieve a competitive advantage from analytics. On the product side, it helps in tracking customer needs, leading to the design and creation of innovative product lines, revenue streams, and in some cases, new markets. For operations, this data can help chain store retailers gain a better understanding of how to improve efficiency across their business.
The global retail industry uptake is being driven by rising GDP growth rates, increasing disposable incomes and growing consumer spending sentiment. According to market research firm Lucintel, the market is expected to be worth approximately $20 trillion by 2017. To fully tap the market opportunity, especially during peak season, retailers can use analytics as a powerful tool to stay one step ahead in customer relationship building and streamlining multichannel operations, among other “gifts.”
Murali Nadarajah is CEO of Xchanging Malaysia.
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