Think smart data, not big data

The rapid pace of change in the retail landscape continues to challenge our collective thinking and poses genuinely mind-boggling forecasting dilemmas. The trouble is it is often both difficult and expensive to change retail supply infrastructure quickly. The question is how to prioritise change programmes effectively and adapt swiftly enough to stay ahead of the game.

Smart operators already put the customer at the heart of planning decisions and understand the commercial opportunity, and indeed threat, that an Omni-channel world brings. Customer insights are key to understanding the changing attitudes, behaviours and needs that drive omni-channel now and in the future. But there’s a catch – there’s a big gap between what customers say they want today and what they don’t yet know they want for tomorrow. More often, there’s an even bigger gap between where retailer data sales data says shoppers made a purchase and where that purchase decision journey began.

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There are 5 customer-based insights that committed omni-channel retailers need to consider:

• Customers see one brand and expect one, joined-up brand experience; channels don’t feature in their thinking.
• Omni-channel is not just a channel strategy it is fast becoming engrained customer behaviour (i.e. customers are using multiple channels to evaluate and make a single purchase). Omni-channel customers can demonstrate a margin-punishing form of shopper behaviour whereby they “channel cherry-pick” the very best options available across channels.
• Visible in-store technology is an enabler, to consumers it signals modernity and joined up brands. By contrast, poor in-store technology that is surpassed by customers’ smartphones is just plain embarrassing.
• Customers don’t always read emails or texts properly. They are irritated by multiple messages about a single order and often make incorrect assumptions about what action they should take e.g. making a trip to collect a parcel when the email clearly announced nothing more than receipt of the order.
• Whether at the point of order or return customers are open to intelligent data capture that feeds relevant information and offers to them but no-one wants to feel like a data captive.

Despite customers having ingrained shopping habits they are still adjusting faster to Omni-channel shopping opportunities than retailers and that puts retailers at a distinct disadvantage. To restore the balance of power here are five customer insight based rules for omni-channel success:

• Focus on brand consistency and journey continuity from start to finish. Make it easy for customers to begin, continue and complete their journey wherever they are and remember that you, the retailer, are responsible for that brand experience until the goods are in the customers’ hands (even if they are delivered by a third party).
• Minimise potential exposure to customer “channel cherry-picking” by aligning offers and deals across channels to minimise “undesirable” shopper behaviour. Help channels to work together to provide the most convenient option for the customer; don’t encourage cross channel competition.
• It is not OK for customers to have better online access and therefore more information about your products and services than retail store staff.
• Apply the “Goldilocks principle” to order delivery communication; don’t communicate too much, don’t communicate too little, you need to get it “just right” and that’s easier said than done.
• This is the age of BIG data, most companies have more than they can possibly use and customers feel more exposed by every new request. Seek data intelligently; ask for personal data sensitively and only request what you need.

It’s easy to think you need to deliver it all but if that means you risk failing to keep your promises that can rapidly translate into dissatisfaction, lost sales and even lost customers. Far better to deliver consistently on what you promise (whatever the channel) than risk under-performing.

Author:
Cara Berry, Biznography, a consultancy applying market research techniques to help clients make the right decisions for their business