In order to understand their customers’ profile and boost business, merchants need to have structured data and information at their disposal. A Cielo survey in partnership with Expertise* showed that 73% of business and commercial establishment managers use data to promote their businesses. However, the study indicates that 57% do not resort to more effective tools such as research and data collection on competitors and similar businesses.
“Data are indispensable tools for retailers and entrepreneurs who want to increase their revenue and cultivate a better relationship with their customers. The fact that nearly a third of respondents still do not use data and more than half do not analyze the competition shows there is an opportunity to change this reality. It is necessary to include these merchants in the world of analytics,” says Estanislau Bassols, CEO of Cielo.
In the executive’s view, data application is well-established in large retail chains that have dedicated structures and a comprehensive view of their business. “However, the situation is different when we look at medium-sized retailers and entrepreneurs, who suffer from a lack of support in sales and business management. But even those who are already somewhat familiar with data can enhance its use and achieve better commercial results,” says Bassols.
Use of data
According to the survey, this resource is applied in different ways. Among the preferred uses are: defining promotional actions (mentioned by 37% of respondents); customer relationship initiatives, such as loyalty programs and discounts (36%); pricing (36%); defining the set of products and services offered (27%); improving customer service (24%); personalizing the customer experience (23%); defining marketing and sales channels (22%); and identifying new target audiences (21%).
Different areas of companies use data in their daily operations. Those that leverage this knowledge the most, according to respondents, 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, are specific information about their business (mentioned by 38%), customer purchase history (35%), and data about the market and their segment (18%).
Social media
According to the survey, 22% of managers use social media as their primary source of information. “Although social media has quality content aimed at small businesses, the information shared by certain channels can often be decontextualized or distorted,” says Bassols. “That’s why Cielo has increased its presence on social media to provide consistent and useful information for retailers. In this effort, we leverage the company’s knowledge and 30 years of market experience.” News websites (15%), business support entities and retail associations (12%), and radio and TV news (10%) also make up merchants’ sources of information.
Artificial intelligence
More than half of respondents (52%) believe that most 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.
However, this evolution will bring challenges. The need to educate teams and employees about good data usage practices was cited by 55% of companies. Cyber threats and new regulatory requirements concern 19% and 11% of managers, respectively.
“The survey points to an increasingly data-dependent future, which reinforces the need to include managers who do not yet use it in their daily operations. Interestingly, with the evolution of generative AI, merchants will increasingly rely on customized and favorable information for their businesses. In the retail context, integration with AI should also make experiences more interactive and personalized, from recommendations based on customer behavior to the use of augmented reality to test products virtually, for example,” says Bassols.
