4 Trends Driving Retailers in the New Age of Data

By Ers Ekman

While this level of data management isn't a new concept among large enterprises, more midmarket companies are turning to data-driven marketing to drive business growth. With today's advanced technologies, data management solutions are much more accessible and easier to implement than in the past. Four key trends are also driving these midsized businesses to join retailers of all sizes in the quest for better data:

1. Big data: Many retail organizations understand the intrinsic value in mining and analyzing traditional data sources such as demographics, customer transactions, behavior models, industry trends and competitor information. However, the age of big data and advanced technologies demands that new data universes (e.g., social media and mobile technologies) now be analyzed.

Retailers must build the infrastructure to support these growing universes of data. Those who successfully incorporate big data projects into their overall business strategy will gain significant returns, including better customer relationships, improved operational efficiency, identification of new marketing opportunities, security risk mitigation and more.

2. Knowledge-driven consumers: Today's consumers are knowledge driven, consuming information on the go and at their choosing. They interact with organizations through multiple channels — e.g., email, customer service departments, call centers, social media, in-store visits, online shopping, etc. — and they can act immediately with smartphones and tablets, comparing prices online while shopping in-store. Each and every touchpoint is an opportunity for retailers to optimize the customer experience, enhance customer loyalty and, ultimately, increase profitability.

3. Increased speed of business: As data is generated instantly, retailers must learn to take advantage of real-time opportunities or fall behind the competition. With increased customer and business expectations, real-time decision making brings a competitive advantage. Consumers can connect on the go with smartphones and tablets, or make purchases on a website. Retailers have only minutes to integrate data about the consumer, such as purchase history or calls to customer service, in order to deliver the most relevant offers and messaging.