The retail industry is extremely competitive, making it difficult for businesses to differentiate themselves. This situation has only gotten worse as consumers have moved online, initially for convenience but now out of necessity due to lockdown and social distancing. With every company offering a variety of products (and services) to meet modern-day customer needs, the industry is experiencing a data surge. Smart data utilization is required to increase business value, and one of the best ways to do so is to focus on data quality management- Shamayun Miah.
Improved data quality can provide actionable insights to the retail sector, allowing them to cater to the targeted market with a better business proposition and enhanced customer experience.
Why is data quality management so important to retailers?
Data about customer needs, market dynamics, and competition are continuously generated from millions of data points in the retail industry. Decisions will be made based on incorrect, duplicate, or incorrect data if the data is of poor quality.
Consider the impact of poor quality customer data on marketing decisions. If the data collected contains unclear demographics or incorrect choices, retailers will end up wasting enormous amounts of time attempting to reach out to customers with uncertain messages – time that could have been spent on more critical, business-value-driving tasks.
Effective retail data quality management can:
- Assist in decision-making across marketing, product development, inventory control, finance, and other areas while lowering the risk of poor decisions.
- Provide a competitive advantage by identifying opportunities (and threats) before your competitors.
- Increase profitability by concentrating on developing bundles (and content) that generate the most revenue.
- Improve the accuracy of machine learning and artificial intelligence algorithms to speed up and respond to business decisions- Shamayun Miah.
- As data regulations continue to evolve and become more onerous, achieve compliance.
- Create precisely targeted advertising campaigns and messaging that appeal to the right people at the right time and place.
- Increase the quality of product content delivered to customers while also increasing the effectiveness of timed campaigns.
- Improve customer relationships by learning more about their preferences, interests, needs, and desires.
- Assist in making appropriate product recommendations based on when customers visit the site, what products they browse, and where they are in the purchasing journey. Maintain the appropriate level of inventory based on an analysis of how much customers will purchase and optimize operating costs.