New report finds retailers are challenged by Big Data issue
A new report has found that that retailers need to do more to address the issue of Big Data if they are to meet demand from consumers for personalised service and offers tailored directly for their needs.
The report commissioned by SAP (UK) found that retailers are failing to harness new technology to analyse and act upon customer data.
Examining plans for technology investment this year amongst 100 retail companies, it found that Big Data is swamping the industry with over half of the respondents admitting to having access to more data than they can actually act upon. In addition, 88% of companies surveyed claimed to experience problems gaining valuable insights from customer data.
Chris Osborne, retail industry principal SAP UK and Ireland, said: “Retailers need to get to grips with Big Data now in order to be able to cope with the deluge of data that is available, both on their business and their customers.
“The retail industry recognises the need to analyse data whilst improving customer service, but how to achieve that in harmony is clearly where there’s cause for confusion. By investing more heavily in customer facing technology, companies are opening themselves up even wider to receive more data which they are already struggling to utilise effectively.”
Almost two-thirds (64%) of the retail companies surveyed said they were under increasing pressure to provide IT innovation that would improve both customer retention and loyalty. In addition, over three quarters (78%) of respondents claimed that their customers had become more responsive to offers and 75% reported a rise in customer demand for a more personalised service over the past two years.
Over a third (37%) of retail companies surveyed said they had seen customers become increasingly reluctant to provide information and just under half (49%) reported that their customers’ expectations for service improvements had been a direct impact of the increased availability of data.
Osborne added: “The more you fail to act on data, the more customers are likely to lose interest and look towards your competitors who are providing a more personalised service.”
Key findings of the report include:
– Over three quarters of retailers have seen customers become more responsive to offers, 75% have also reported a rise in demand for a more personalised service
– Two thirds of retailers are under pressure to provide IT innovation that will improve customer retention and loyalty
– Just under half of retailers surveyed admit to finding it difficult to turn customer data into insight
– Seven out of ten retail companies are more likely to invest in customer facing technology than back office during 2012
– Retailers are challenged by balancing the need to improve profitability (76%), reduce costs (65%) as strategic priorities.
