Achieving Growth through Customer Insights: The Power of Big Data in Retail
Over the past five years, big data analytics has revolutionized the way we understand customer behavior, bringing elevated levels of precision and accuracy to predictive analytics. In the world of retail, this capability has allowed retailers to drive highly targeted marketing campaigns or strategies and personalized interactions—ultimately elevating the overall customer experience.
In the first part of our LinkedIn Live session featuring Luke Pattison, Vice President of Business Development – Retail; Himadri Sarkar, Chief Solutions Officer for US Markets; and Blake Morgan, Customer Experience Futurist and host of “The Modern Customer” podcast, the spotlight is placed on big data and how it has the power to achieve growth through customer insights.
The Revolution of Big Data Analytics
Big data analytics provides the ability to analyze vast amounts of individual data in real-time. One of the significant advantages of big data is its ability to segment customers with accuracy and precision. Retailers can now create highly specific customer personas, each based on detailed behavioral data. This allows retailers to develop marketing campaigns that speak directly to the needs and desires of individual customer groups, resulting in higher engagement and conversion rates. As customers anticipate—and expect—brands to understand their preferences and cater to them accordingly, big data can tailor personalized shopping experiences, ranging from product recommendations to customized promotions, leading to increased customer satisfaction and loyalty.
Challenges
Oftentimes, when armed with a wealth of data from various sources, data integration may yield incomplete results. When this happens, opportunities could be missed in terms of how we drive better customer acquisition, retention, service.
Data privacy continues to be a topic. Offering his insight on how TP mitigates risks and addresses data privacy, Himadri explains: “To provide real-time recommendations to our customer experts, we first redact all sensitive information from the interactions. Once that is done, we identify what are the specific intents, which then kind of gets classified and aggregated, eventually gets anonymized. And then it is put forward in front of the customer experts so that now they're able to navigate the knowledge base and give the right information or answer to the to the end customer.”
The Value of Data-Driven Actions
The value of data lies in the actions that can be derived from it. Understanding what customers want, what they are looking for, and the kind of experience they expect is essential for driving growth. Blake, deemed “Queen of CX” by Meta, emphasizes the importance of retail companies viewing employees as customers to build a customer-centric mindset within the organization. “Research shows that companies that invest in employee experience are 4.2 times more profitable than companies that don't,” Blake states. “And in researching this topic for almost 20 years, what you find is that the companies that rank high for customer experience also often rank high for employee experience. And so, if you want to see the world's most customer centric retailers, all you have to do is head over to the great place to work list because these are companies that really prioritize employee experience.”
Learn valuable insights on how to leverage big data to help your organization drive better customer experiences. Watch our LinkedIn Live session today by clicking here.
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