Retail as we knew it no longer exists. Consumer behavior has changed in a completely irreversible way over the past ten years due to easier access to information about products and services, anytime and anywhere. This true digital empowerment is redefining retail, requiring companies in the sector to adapt quickly and continuously to an environment where the customer experience is fundamental. And the key to achieving this goal and innovating lies in the strategic use of data.
Knowing the buyer deeply, their consumption habits, and anticipating their needs is mandatory, the so-called "Customer 360" view. Especially with the convergence of physical and digital shopping channels in an increasingly omnichannel strategy, consumers expect a seamless 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.
The retailer needs to carefully analyze their business data and each customer interaction. Information about online browsing behavior in e-commerce and interaction history (which may result in a purchase or not) 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 enormous and comes from various sources, ranging from customer service channels, apps, and websites to heat map solutions and flow analysis within 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 seek, it is necessary to overcome this fragmentation of information. By integrating all data, companies begin to transform raw information into valuable insights, enabling faster, more accurate, strategic, and customer-focused decisions.
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 steps to ensure their integrity, privacy, security, and that they are as up-to-date as possible, available in the correct detail for the correct user. This process ensures that the data are contextualized, organized, and can be used effectively as a powerful tool. These actions directly impact the business performance, and by not giving proper importance to this process, with low-quality and poorly governed data, the retail "business" will certainly face problems throughout the operation, directly reflecting on the results.
With a crucial role in the current supply chain, brick-and-mortar stores are transforming and functioning as experience centers for buyers and logistics hubs, going beyond simple points of sale. During high-demand events, such as Black Friday, when the capacity to handle the enormous increases in sales and highly efficient logistics are put to the test, the need to operate with integrated, governed, and quality data becomes even more evident.
It is worth emphasizing that properly analyzed data must be democratized and cannot remain centralized in their original silos. Store employees need access to real-time contextualized information so they can optimize processes for more efficient management and make quicker decisions directly with the customer, on the shelf or atback office. This way, there is greater integration throughout the retail chain, from the store to thesupply chain, with effective inventory control, fast and efficient logistics and distribution, making the end-to-end shopping experiences unique.
The utilization of large amounts of data from various sources enables the sector to adopt more informed measures, reducing waste, improving customer service, and maximizing margins. This new era of retail is based on real-time automation and analytics, with the customer at the center of strategies. Therefore, the path to a successful future in the sector involves extracting data from the silos in which they are stored, integrating operations, and incorporating analytics into the decision-making process. Retailers who adopt this approach will be able to structure and organize this complex data ecosystem to generate value for their businesses, building a stronger and more lasting relationship with their buyers, as well as keeping up with market changes and evolution 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
