Can Retail Ride the Digital Wave to Successful Customer Management?
Ecommerce in the United States grew 44% in light of the pandemic with online spending representing 21.3% of total retail sales in 2020. It’s clear that digital transformation in the retail space is top-of-mind for the industry, but marketers are grappling with so many changes over the last year that it’s hard to keep priorities straight. In the increasingly digital landscape, retailers are struggling to stay ahead of—and anticipate—everchanging customer needs.
The CMO Council, in their latest whitepaper in partnership with Teradata, found that customers are getting so frustrated with brands that 73% are considering spending their dollars elsewhere. With both corporate marketing budgets and household incomes under pressure as we recover from the pandemic, brands can’t afford to miss any opportunities with their customers.
So, how can retailers adapt?
The answer lies in data. With more customers embracing the digital landscape for their retail needs—and convenience becoming more of an expectation than a luxury—customers are more willing to share personal details with brands in exchange for a more personalized experience. In fact, that 81% of customers are willing to do exactly that, and even more customers will share their information if the brand is transparent about how the data is used.
Download our latest whitepaper, Will Retailers Capitalize or Capsize on Consumer Data?
Competitors are now just a click away. The key to building customer loyalty is data. But it’s not about collecting as much data as you can. It’s about collecting the right data to create relationships that are meaningful to your customers. Showing your customers that you care and tailoring their experience with your brand to suit their preferences will turn a casual customer to a brand champion.
Not only is leveraging data insights essential to staying competitive, but in many cases, to marketers keeping their jobs. CMO Council research highlights that 76% of senior marketing leaders feel their jobs could be on the line if customer experience strategies fail to deliver profitable results.
On the bright side, with the demand for digital transformation increasing, CMO Council found that technology innovation is also seeing a resurgence. Now, more than ever, brands are able to tap into mountains of insights about their customers that, when used correctly, can enable quick pivots, strategic planning, and loyal customers who are content with their experience: a win-win scenario.
Retail marketing leaders have quite the challenge ahead of them as we shift our focus toward online sales. Marketing is becoming more of an art and science, requiring data literacy and tech savviness without losing the uniquely human aspects that make marketers, marketers. It’s a tall order, but if 2020 taught us one thing, it’s that anything is possible.