Success in digital retail begins with optimal data

Data is the raw material underpinning digitization. But data needs to be able to flow freely for retailers to be successful. Customers need to access the latest data at an ever-increasing number of touchpoints, but this can only work if the data and interfaces underpinning the system are the best they can be.

The world of retail is becoming more complex

The journey taken by customers has not simply been linear for quite some time. It is continually fragmenting as new touchpoints are introduced where information needs to be gathered and presented. This begins with companies’ own websites, e-commerce solutions and marketplaces right through to social media. The old touchpoints between retailers and customers are rarely discontinued. The numbers of printed catalogues may be falling but they are becoming leaner and aimed more at specific target groups. They are still important and need to be filled with information. But that’s not all. The timespan in which product information needs to reach customers is becoming shorter. This means that reading and interpreting customer data is becoming more important than ever.

Customer focus is what counts

Last year, Zalando decided to let go of up to 250 marketing employees and invest instead in artificial intelligence and data analysis. This shows where the trend is heading, with customers largely not looking for campaigns with fantastic images; they want relevant information and product suggestions.

The challenge for retailers is to design the the best possible customer experience. If customers cannot find relevant, accurate and up-to-date information on their desired products at all touchpoints, they are likely to go elsewhere.

Your data is crucial

How data is handled is key in today’s world of retail. To be able to work with data, it first needs to be available and accessible, but this is often not the case. Data/information is frequently located in different databases, IT systems, Excel tables, unstructured files and stored in the heads of a few employees. This makes it unnecessarily difficult to quickly access important data.

Digitization also means data flowing reliably and freely between the various systems. But, again, the core systems in many companies (ERP, CRM, PIM, image management etc.) are often separate silos. The systems are at different technological levels of development and communicate either ineffectively with one another, or not at all.

But it’s not always due to insufficient underlying technology: there’s also frequently a silo mentality among employees. Teams don’t work seamlessly with each other, are unwilling to simply hand over their valuable data, or are simply don’t know how crucial this data is to the company as a whole.

Incorrect processes cost a lot of money and slow down development

Data silos, outdated interfaces (or a lack of them) and insufficient exchanging of data can be expensive since they generally require manual intervention. Data may be stored on a redundant basis and maintained in various systems. Both not only cost time and money, but inherently lead to errors and lower data quality.

New technological developments whose effect on retail can already be foreseen, such as AI, language assistants, VR/AW or 3D printing, are based on seamlessly available, high-quality data. Companies which do not have their data under control, are only making it difficult for themselves to benefit from the opportunities of technological progress.

Do you have your data under control?

Is the data in your company able to flow freely? Do you have your systems, interfaces and processes under control? This is a crucial foundation to being successful in digital retail, which is why it would be worth taking a closer look.