The e-commerce revolution: How retailers can use data to “not just survive but thrive”

As part of Bdaily’s latest feature, Retail Week, we hear from data integration platform Supermetrics, who share their research and insights regarding how e-commerce retailers can embrace data in order to bolster their chances of success in the current challenging economic climate. Read on to find out more…

The e-commerce industry has entered:

With the rise of smartphone technology and the decline of brick-and-mortar stores, the world has entered an e-commerce revolution. Without a doubt, this has changed the shopping experience of consumers in recent years.

E-commerce has transformed the retailing industry across the globe. Online shopping has meant consumers can enjoy the luxury of being able to purchase whatever our heart desires from the comfort of our homes everyday.

Already standing at 2.05 billion users, that’s a quarter of the population, it is undeniable that many consumers have been taking full advantage of this prevailing trend. As it does not appear to be slowing down, is it important for retailers to question: How can we best utilise the new data we gain from online shopping?

Understanding intel can help retailers in a variety of ways. Data can be used by retailers to track customer behaviour, determine which products are selling well, and identify areas for improvement. Analytics can also assist e-commerce platforms in personalising shopping experiences for each individual customer.

Data is becoming increasingly important for retailers as the industry becomes more competitive. To understand what customers want and need, retailers must collect information that will be useful in providing a better shopping experience and staying ahead of their competitors.

Some common analytical tools used in the retail industry include customer segmentation, customer lifetime value analysis, and predictive analytics.

Identifying data through the masses:

Gathering a bigger picture of the consumer is increasingly important if digital wishes to remain competitive. Supermetrics recently carried out a survey and found that 67 per cent of the industry struggles to identify which information is most useful amongst the vast amounts of data being generated each day.

There are various analytical tools available to help retailers sift through this data and draw insights that can improve their business. Implementing the correct strategies can help brands harness large data sets to reveal hidden shopping patterns, customer preferences, and market trends.

And by revealing their customers’ shopping habits, retailers can derive the value of information and make better business decisions. In fact, Supermetrics’ study indicates that an abundance of data can lead to “dataflation” with over half (52 per cent) saying this can negatively impact their company.

A few of the key benefits for retailers using data analytics include identifying patterns in consumers’ shopping journeys and improving customer experience, leading to companies saving money.

Happy customers & money cuts:

By understanding what customers want and need, retailers can provide a personalised experience that leads to customer satisfaction and retention. By picking up all the necessary marketing data and bringing it to key reports, analytics, or storage platforms, consumers’ recurring patterns become noticeable.

From retailers learning this information, it becomes vital in helping them forecast future demands and plan for the next twelve months. Retailers can use the organised data to determine which products are selling well and which are not.

And based on that, decisions be made about which products to stock and which products to promote, saving money on inventory costs, which could prove vital during a difficult economic period

Key festivities for retailers:

The festive season is upon us, and the pressures of Black Friday, Cyber Monday, and even Christmas are making retailers anxious to collect the intel from the busy peak period.

Many brands are under pressure to collect data from shopping patterns in the run-up to Christmas, as we found that 63 per cent of e-commerce leaders believe the peak period may decide the future of the business.

The recent announcement that the UK has entered a recession has caused many retailers to become increasingly concerned.

Our survey discovered that over 73 per cent say it will directly impact their growth, which could impede their plans for peak season. Consequently, it’s never been more important for retailers to seek assistance as consumer budgets tighten and the supply chain remains volatile. A solid data plan is therefore necessary if they are to weather the storm.

What happens next?:

In the next few years, we can expect to see an increase in data and economic pressures to continue to rise. The challenging period ahead requires retailers to implement an intelligent approach to data to help them not just survive but thrive.

This will mean retailers will continue to have to closely monitor key trends and changes to help them adapt and innovate to the new consumer demands. Harnessing technological solutions will be key for e-commerce retailers to reduce the upcoming pressures and remain agile to the latest market trends and consumer expectations.

Data analytics truly can help make the required adjustments and ensure the festive season lays a solid foundation for the year ahead.

By Matthew Neville – Correspondent, Bdaily

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