In order to understand the profile of their customers and boost business, merchants need to have structured data and information available. Research from Cielo in partnership with Expertise* shows that 73% of company managers and commercial establishments use data to promote their businesses. However, the survey indicates that 57% do not resort to more effective tools such as research and information gathering about competitors and similar businesses.
“Data is an indispensable tool for retailers and entrepreneurs who want to increase their revenue and cultivate a better relationship with their customers. The fact that almost a third of the people surveyed still do not use data and more than half do not analyze the competition shows that there is an opportunity for this reality to be changed. It is necessary to include these merchants in the analytics universe,” says Estanislau Bassols, CEO of Cielo.
According to the executive, the application of data is well established in large retail chains that have a dedicated structure and a comprehensive view of their business. “The situation, however, is different when we look at medium retailers and entrepreneurs, who feel the lack of support in sales and business management. But even those who already have some familiarity with the data can leverage its use and achieve better business results,” says Bassols.
Use of data
According to the survey, this feature is applied in different ways. Among the favorites are: definition of promotional actions (mentioned by 37% of respondents); customer relationship initiatives such as loyalty programs and discounts (36%); pricing definition (36%); definition of the set of products and services offered (27%); improving customer service (24%); personalization of the customer experience (23%); definition of marketing and sales channels (22%); and identification of new target audiences (21%).
Various areas of companies use data in their daily operations. According to the respondents, the ones making the most of this knowledge are Sales (89%), Marketing (85%), Customer Experience (82%), and Finance (71%). Nearly half (47%) said they have a person or team responsible for data analysis.
The most valuable data, in the view of entrepreneurs and retailers, is specific information about their business (mentioned by 38%), customer purchase history (35%), and data about the market and their industry segment (18%).
Social Networks
According to the survey, 22% of managers use social networks as their main source of information. “Despite social networks offering quality content aimed at small businesses, the information shared by certain channels can often be out of context or distorted,” says Bassols. “Therefore, Cielo has increased its presence on social networks to provide consistent and useful information to retailers. In this effort, we utilize all the company’s knowledge and 30 years of market experience.” News websites (15%), business support entities and retail associations (12%), and radio and television news (10%) also make up the sources of information for merchants.
Artificial Intelligence
More than half of the respondents (52%) believe that the majority of commercial establishments will use data in decision-making in the next five years. Among the technologies that will have the greatest impact, generative artificial intelligence was mentioned by 49% of managers.
Such evolution, however, will bring challenges. The need to raise awareness among teams and employees about good data practices was cited by 55% of companies. Cyber threats and new regulatory requirements concern 19% and 11% of managers, respectively.
“The research points to a future increasingly dependent on data, reinforcing the need to include managers who do not yet use them in their daily activities. The interesting thing is that, with the evolution of generative AI, merchants will be able to increasingly rely on customized and conducive information for their businesses. In the context of retail, integration with AI should also make experiences more interactive and personalized, from customer behavior-based recommendations to the use of augmented reality to virtually test products, for example,” says Bassols.
