7 Must-Read Stats on the Future of Retail, IoT & Big Data
Recently there has been A LOT of talk about big data in retail.
How to make data floods useful on both the retail shelf and online storefront… How the Internet of Things and an increasingly complex path to purchase presents even more data complexities… How important data is to create more targeted strategies as loyalty continues to fade…
And the list goes on.
To help you keep pace with all that’s going on in this fast-moving area, here are 7 key stats that paint a really good of picture of the future of retail and big data…
Organizations with above-average performance using customer data and analytics outpace competitors by 2-3x on sales, margins and profits (Harvard Business Review).
Data is becoming less of an option and more of a must-have in retail. How quickly retailers and brands can turn their data “floods” into action will soon become a major determinant of retail’s winners and losers.
By 2017 most companies will have moved from annual or quarterly research and analysis to daily (Gartner).
Retail is changing so quickly and competition is growing at an exponential rate. Soon maintaining any sense of sustainable competitive advantage will be near impossible. To keep up, retailers and brands will need to adopt more agile strategies by gathering feedback from consumers in as close to real-time as possible.
In-store analytics offers a $61 billion value stake for retail (Cisco).
For many retailers and brands, the last 1,000ft has been a black hole for real-time consumer analytics. But, growth in in-store analytics is helping to close this gap. Brands inside retailer locations can now get highly precise analytics around how shoppers engage with their products or displays and measure ROI. Likewise, retailers can get analytics around how shoppers travel through their stores, respond and interact with their merchandising and navigate their categories or departments to optimize their marketing and operations. In the future, “offline retail” will no longer be a good synonym for physical stores.
Companies that have captured the full customer journey by integrating multiple sources of data are generating up to 8.5X higher shareholder value (Harvard Business Review).
Right now the race is on to figure out how to create the seamless omnichannel journey and achieve online to in-store attribution. Some early adopters are already reaping the benefits.
There will be 13.5 billion consumer connected “things” by 2020 (Gartner).
The reality is that consumers already have a myriad of possible paths to purchase. This number isn’t slowing down or going away, it will continue to grow thanks to the IoT and wearables.
54% of consumers would consider ending their relationship with a retailer if they are not given tailor-made, relevant content and offers (CMO Council).
A critical component of data and analytics is using that data to deliver more targeted and personalized experiences across devices and channels. We’ve already seen companies like Macy’s exploring mobile messages and location-based offers to deliver targeted experiences. In-store marketing will get smarter with targeting messages and personalization.
One in three shoppers has purchased from a company or brand other than the one he or she intended to because of information received in the moment (Google).
The next layer on top of these personalized experiences will be using that real-time data to deliver more in-the-moment experiences, or experiences that react to consumers and their needs in real-time. For example, a consumer has just picked out a dress in-store. What if a digital screen in front of her immediately changed to show recommended accessories along with where to find them?
Without a doubt big data is changing and will continue to change retail. Are you ready?
Also check out…
Retail Analytics: Understanding the Options
Learn everything you need to know about in-store analytics to make the right choice for your brand.
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