Retailers are constantly looking for new ways to collect data throughout each step of the buying process in order to leverage the insights they glean and discover the dollars in their data. Though some retailers are making great gains in data monetization, many are still struggling to realize true business value from customer information. Most companies have a veritable treasure trove of data that sits untapped, just waiting to be turned into revenue with a little bit of time and attention.
1. Leveraging Data to Control Costs
Data monetization is usually synonymous with creating new revenue streams, but retailers can “find” money in existing processes with the help of analytics. Real-time data analysis gives retailers the opportunity to improve planning, streamline inventory management, improve quality control processes and improve resource allocation across the board. Insights gleaned from analytics can be leveraged to identify inefficiencies in the supply chain and other operational areas. With the right approach, retailers could find significant cost-savings measures hiding in their existing data.
2. Leveraging Data To Make Real-Time Adjustments
In a traditional approach to analytics, data is collected constantly, but only analyzed quarterly. Four times a year, insights are dispersed throughout a retail organization in highly-anticipated reports. The information in these high-level “data dumps” is valuable, but by today’s standards, is stale by the time it gets into the hands of marketing, supply chain, buying and merchandising managers.
Retailers that are making the most of data monetization take a real-time approach. Data is constantly being analyzed to recognize patterns and uncover insights as they occur, allowing retailers to spot trends and quickly capitalize. A real-time approach helps stores build a steady stream of revenue traced directly to data sharing while simultaneously creating a better shopping experience for the customer.
3. Data Monetization And CPG suppliers
There is real monetary value in sharing real-time data with vendors and suppliers. When these partners can act upon insights quickly, it gives the opportunity to adjust their own strategy to boost their category share. In fact, this information is so highly valuable, that savvy retailers are charging CPG suppliers a fee for access to real-time insights that significantly improve their performance in-store. Those fees create yet another data monetization revenue stream.
Take a loyalty program, for example. In return for opting into a rewards club, customers expect to receive personalized offers. Stores are already doing this, but it can be taken to the next level for improved data monetization. Retailers can share anonymous critical insights to its CPG suppliers for a fee, allowing them to develop their own targeting strategies to move more merchandise through that retail outlet. It must be said that this type of data sharing must be anonymized to protect customer privacy. If CPGs were to target shoppers directly, customer relationship with the retailer would immediately fracture.
It goes without saying that there are dollars hiding in retailers’ data sets. In order to get those dollars flowing towards the bottom line, stores must begin to focus on leveraging that data to do more than just improve the shopping experience. They must look for ways to use data to create efficiencies and processes that save money and they must develop strategies to share data in meaningful ways with suppliers.