How Analytics Partnerships Are Helping Retailers Get Smart About Data
By democratizing in-house data and pulling information from multiple channels, retailers can more nimbly respond to customer needs
What size of skinny black jeans are most popular with female shoppers between the ages of 20 and 35 in midtown Manhattan? How many seconds does it take for a customer to move from a product page to their shopping cart before they complete a purchase? Retailers have more data available to them than ever before, but data is essentially useless if it’s fragmented into too many channels, or so convoluted that it can’t inform strategy.
In order to overcome the challenges associated with siloed technologies and outdated legacy systems, many retailers are turning to outside partners for help, collaborating with analytics or digital networking companies, or reworking their own internal systems to extract the most valuable information from large amounts of data and develop insights that will ultimately benefit customers.
PSFK researchers explored this trend to understand how retailers are democratizing in-house data in order to improve the way their businesses run, from marketing strategies to inventory optimization.
Multi-Channel Data Integration
Data analytics software allows retailers to unify online and offline data to improve decision-making and create sales strategies for their brick-and-mortar stores and distribution centers. Predictive analytics uses mountains of data, which retailers already have, and a wide array of technologies and approaches to analyze and project the likely outcome of future events and consumer behavior.
Valentino × Net-a-Porter
Luxury brand Valentino and Yoox Net-a-Porter (YNAP) partnered with IBM to create a new omni-channel business model to improve the customer experience through greater visibility and access to inventory across fulfillment centers and stores. This will decrease the likelihood that shoppers will leave their sites unhappy, and increase the rate of customers finishing purchases they might have abandoned before, due to a lack of available inventory.
Store of the Future
Farfetch’s Store of the Future technology platform will support the company’s brand and boutique partners’ physical stores by giving them insight into customer data history from online and, as it’s collected, in-store shopping trips. Using the platform, stores will be equipped with a database that shares information around a customer’s past purchases, preferred brands and browsing behavior, which will help salespeople better personalize the in-store experience.
By using outside companies to better understand their own data, retailers can respond faster and more effectively to problems in the supply chain, at points of sale or anywhere in between. For more on how data is changing the ways retailers do business, check out our recent report Capturing Data In Retail Environments.