Creating a Great Customer Experience – Why Data-Driven Decisions are the Best Decisions
The customer is at the heart of most decisions made by business leaders today – but how to please that tricky 21st Century consumer? This has never been more important for the retail industry, which has seen its landscape altered permanently by ecommerce.
Data is essential for retailers if they want to make informed decisions about customer behaviour, with analytics helping to improve existing products, and in turn, helping with knowing where to focus marketing spend and improve a website to better engage with customers. Using analytics at the preliminary stages of buying are of course important – more than three-fifths of global internet users research products online before buying – so this is great time to use prior knowledge gleaned from data to pique their interest. But now marketers are looking at other ways in which big data can add business value in the retail world.
In 2013, approximately 50% of retailers were using big data and analytics, but many retailers were still a bit hesitant about how they could monetise that data and turn it into profit. Now, there is no doubt in anyone’s mind that big data is ‘enterprise ready’. Retailers have seen their operating margins increase by more than 60% with the help of data analytics services to make the most of all that is available. Not only within the business, but this data-centric approach could have a national impact – if all data within retail and manufacturing is used to its full potential, GDP could be increased by $325 billion in the US alone (source: McKinsey). That is a figure to be reckoned with.