Accurate Data Key to Better Understanding of Your Customers
More retailers are relying on data to inform daily business operations. These decisions range from where to establish new store locations to how to prioritize customized offers and display advertising.
Data has become mainstream, with multiple departments using terms like business intelligence or big data. Many retailers are realizing benefits to leveraging information effectively, which could be the reason behind this shift in analytical responsibilities. Harnessing intelligence improves staff efficiency and consumer interaction, allowing retailers to provide better offers and enhance the customer experience.
Creating valuable, consistent analytics isn't without its challenges, however. Information is often siloed and spread out across an organization. Retailers are also plagued by inaccurate data. In fact, according to a recent Experian QAS study, 92 percent of retailers suspect some of their customer and prospect data might be inaccurate. On average, respondents thought as much as 17 percent of their data might be wrong.
A lack of a single customer view is hurting the advanced analytics efforts described above. A single customer view is an aggregated and holistic representation of the data known by an organization about its customers. Essentially, each customer has a single record containing all of the information that the organization knows about them, be it their purchase history, demographic details or even preferences.
Even though 82 percent of retailers will eventually attempt a single customer view, only 9 percent of those surveyed believe they have an effective strategy currently in place. That means that 91 percent of retailers currently lack visibility into their customer base.
There are several barriers to ensuring a consolidated database. First, most organizations operate departments and channels within siloed environments. As more retailers move to an omnichannel environment, organizational structures become more complex and information is further spread across an organization.