Use of analytics among retailers on the rise – survey

22 Jan '14

4 min read

Data analysis is helping drive brand loyalty, but respondents think it can do more. Sixty-four percent of respondents report increased brand loyalty as a general gain from data analysis and 52 percent say big data has enabled them to expand their sales by offering the next logical item. Yet respondents remain uncertain that they reaping the full benefit of their data. Only 30 percent are confident that big data is delivering the sales increases that they had hoped, and most respondents (52 percent) simply are not sure.

Many retailers are still at the early stages of using big data: Only 46 percent of retail CXOs are confident that their firm’s analytical abilities are keeping up with data volumes. Meanwhile just 36 percent believe that they have a well-defined policy for analysing the most valuable information and 30 percent admit that they are not consistently obtaining value from it.

Data delivers in coordinating omni-channel commerce: Over half of respondents say that big data has brought gains in multi-channel sales (54 percent) and has made multi-channel customer tracking and management more profitable (52 percent). But 38 percent agree that managing differing pricing and margin strategies over varying channels is a major headache.

Legal restrictions on data usage are a major concern: Two-thirds of retail CXOs say that they have increased the amount of stored information on individual customers in the past year; 64 percent of them cite legal problems with data collection as a major barrier in its effective use. Data protection laws are tied for the second-biggest impediment to making effective use of use of large amounts of data in strategic planning and decision making in general, cited by 32 percent.

Wipro

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