{"id":1494,"date":"2022-10-27T19:49:00","date_gmt":"2023-06-06T19:49:31","guid":{"rendered":"https:\/\/www.salesforce.com\/?p=1494"},"modified":"2023-07-13T05:03:42","modified_gmt":"2023-07-13T05:03:42","slug":"retail-data-strategy","status":"publish","type":"post","link":"https:\/\/www.salesforce.com\/ap\/blog\/retail-data-strategy\/","title":{"rendered":"Consumers Are Budget Conscious This Shopping Season \u2014 Use Data To Turn Browsing Into Buying"},"content":{"rendered":"\n

Would you be surprised to learn that companies with a strong retail data strategy grow revenue up to 2.9 times faster<\/a> than companies without one? Or that 73% of customers<\/a> expect companies to understand their unique needs and expectations \u2014 a 7-point rise in just two years? Keep those numbers in mind this shopping season because they could affect your revenue and growth. <\/p>\n\n\n\n

Creating personaliszed experiences based on collected customer data, also known as first-party data, is an increasingly critical part of retail data strategy. Despite this, only 32% of retail executives<\/a> say they can turn profile information, purchase history, and service interactions into tailored experiences that make shoppers feel like VIPs. To stay profitable in this changing market, retailers need to meet the demands of must inspire budget-conscious customers. To do that, they need to prove they understand their customers\u2019 needs and expectations.<\/p>\n\n\n\n

Here\u2019s how to acquire and engage customers this shopping season.<\/p>\n\n\n\n

Use customer data to personalise every interaction <\/span> <\/h2>\n\n\n\n

First-party data helps you tailor offers and messages to your customers\u2019 specific interests. The payoff is huge: 78% of consumers<\/a> say personalised email and other messages make them more likely to repurchase in the future. However, simply accumulating huge quantities of data isn\u2019t enough<\/a>. You also need to know what to collect, when to collect it, and how to use it. The challenge is to not drive customers away by asking for everything at once. <\/p>\n\n\n\n

To level-up your retail data strategy:<\/p>\n\n\n\n

Avoid intrusive demands <\/span> <\/h2>\n\n\n\n

During the shopping season, customers\u2019 patience tends to wear thin. Their interest in completing a long customer profile is probably low, so be strategic about what you ask. Focus on data collection that will enable you to follow up with them after the purchase to learn more. Use a multi-pronged approach that balances frequency with relevancy, and stay away from sending mass email and generic communication when possible. The more you know about your customers, the more opportunity you have to tailor your messaging to inspire participation. With a personalised approach, you can collect more valuable information, like product preferences, later as you build trust. <\/p>\n\n\n\n

Keep your loyalty program ready for the shopping season <\/span> <\/h2>\n\n\n\n

Not only are loyalty programs<\/a> an effective way to gather zero- and first-party data<\/a>, its members are often your most valuable customers<\/a>. But with consumers likely to shop less and from fewer retailers this shopping season, your job is to make sure your members think of you first when they\u2019re making shopping lists. How? By ensuring your loyalty program delivers the best value exchange<\/a> possible.<\/p>\n\n\n\n

While traditional rewards-for-transactions arrangements will remain important as consumers get more budget-conscious, don\u2019t overlook the intrinsic value of the VIP experience. That\u2019s especially important for millennial and Gen Z shoppers who value exclusive access to limited-edition products and experiences nearly two times more<\/a> than Gen Xers and baby boomers. So, from priority sale access to complimentary gift wrap, ensure your members feel the data-for-rewards exchange is worth the effort.<\/p>\n\n\n\n

Connect data across the full customer lifecycle <\/span> <\/h2>\n\n\n\n

Busy shoppers don\u2019t have time to waste. They don\u2019t want to repeat themselves on the phone, explain an online promotion to a store associate, or make an extra trip to the post office because they can\u2019t return a purchase in person. The bottom line? Your customers expect you to bridge physical and digital interactions<\/a>. By elevating data from sales, service, marketing, and commerce to a shared customer data platform<\/a>, you\u2019ll gain the 360-degree view you need to ensure every interaction stays personalised, consistent, and on-brand. <\/p>\n\n\n\n

Segment audience data to automate relevant communications <\/span> <\/h2>\n\n\n\n

Shoppers are inundated with emails, texts, app notifications, and social media advertising. Your retail data strategy needs to stand out from the crowd and capture their attention with intelligent messaging<\/a> that\u2019s tailored to their specific needs and interests. But how?<\/p>\n\n\n\n

By organising your customer data based on shared attributes, you can target the audiences most likely to respond to customiszed messaging. For example, imagine you\u2019ve created a segment of customers in a certain region who are on the waiting list for gaming equipment. You\u2019ve recently restocked that region\u2019s store shelves with popular consoles, headsets, and controllers. Segmentation and automated messaging enable you to alert interested customers that the items they want are back in stock. But even better, you can also send communications to lookalike audiences who have purchased gaming equipment from you in the past \u2014 and that\u2019s the kind of personalised experience that drives revenue.<\/p>\n\n\n\n

Make online experiences intuitive, wallet-friendly, and fast <\/span> <\/h2>\n\n\n\n

To grow margin in a challenging economy, you need to do more than tailor communications to customer preferences. Your retail data strategy needs to capture the attention of your first-time shoppers at the right moments and then make it easy for them to buy. <\/p>\n\n\n\n

Use data from existing customers to create:<\/p>\n\n\n\n