Retail, as we knew, definitely no longer exists. Consumer behavior has changed in a completely irreversible way over the last ten years due to easier access to information about products and services, at any time and anywhere. This true digital empowerment is redefining retail, requiring that companies in the sector adapt quickly and continuously to an environment where customer experience is fundamental. And the key to achieving this goal and innovating lies in the strategic use of data.
Deeply understand the buyer, your consumption habits and anticipating your 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 seamless and integrated experience, without caring where they are buying. And this is an unparalleled opportunity for those who know how to use data and analytics strategically.
The retailer needs 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, because the amount of information collected daily by retailers is enormous and comes from various sources, from service channels, apps and sites, even heat map solutions and flow analyses within the stores.
Gathering and structuring all this data in a cohesive and accessible way is one of the biggest challenges currently faced. To create a comprehensive view of what consumers are looking for, it is necessary to overcome this fragmentation of information. When integrating all the data, companies begin to transform raw information into valuable insights, that enable faster decisions, assertions, strategic and customer-focused.
But it is not enough to just integrate data. It is essential that the information base has quality and governance. These data need to go through some stages that ensure their integrity, privacy, security and that they are as up-to-date as possible, available in the correct breakdown 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 the business performance, and, by not giving due importance to this process, with low-quality and poorly governed data, the retail "business" will certainly face problems throughout its operation, reflecting directly on the result.
With a crucial role in the current supply chain, physical stores are transforming and functioning as experience centers for shoppers and logistics hubs, going beyond simple points of sale. During high demand events, like Black Friday, in which the ability to handle the enormous increases in sales and a highly effective logistics are put to the test, the need to work with integrated data, governed and of quality is even more evident.
It is worth noting that the properly analyzed data must be democratized and cannot remain centralized in their source silos. Store employees need to have access to contextualized real-time information so they can optimize processes for more efficient management and make quicker decisions directly with the customer, on the shelf or in theback office. In this way, there is greater integration throughout the retail chain, from the store tosupply chain, with effective inventory control, fast and effective logistics and distribution, making end-to-end shopping experiences differentiated.
The utilization of large amounts of data, coming from various sources, enables the sector to adopt more informed measures, reducing waste, improving customer service and maximizing margins. This new era of retail has automation and real-time analytics as the foundation of operations, and the customer at the center of the strategies. Therefore, the path to a successful future in the sector involves removing data from the silos in which they are, for the integration of operations and for the analytics integrated into the decision-making process. Retailers that adopt this approach will be able to structure and organize this complex data ecosystem to generate value for the business, building a stronger and more lasting relationship with your buyers, in addition to monitoring the changes and evolution of the market towards Omnichannel Retail. This is what will determine success in the current competitive landscape
By Cesar Ripari, Director of Pre-sales for Latin America at Qlik
