Data as the Cornerstone of Retail Strategy
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Data as the Cornerstone of Retail Strategy

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By MBN Staff | MBN staff - Wed, 05/03/2023 - 15:27

The amount of data available to retailers and e-commerce companies has grown exponentially. Because of this abundance of data, many retailers still struggle to make sense of it, failing to use it to inform their business strategies. This "analysis paralysis" is a significant challenge for retailers, which risk being left behind in an increasingly competitive market if they cannot effectively leverage data to stay ahead of the curve. To overcome this sizable challenge and fully exploit data, industry leaders at Mexico Business Forum 2023 emphasized the need for setting clear goals and developing a comprehensive data mapping strategy to generate impactful business insights.

“The true ROI of data lies not just in the amount of information collected, but in the ability to identify key indicators and adapt analytical models to an ever-evolving business ecosystem,” says Marco Gelosi, General Manager Mexico and Central America, Swarovski. Moreover, it is strategic and fundamental for retailers to “continuously assess and update their data strategies to stay ahead of the curve,” adds Gelosi.

Mexico has a rapidly growing retail market with a population of over 126.7 million people, making it one of the largest consumer markets in the world. In recent years, Mexico has seen a surge in e-commerce sales driven by factors such as increasing penetration of internet and smartphones, rising disposable incomes and the COVID-19 pandemic, which accelerated the shift to online shopping. As a result, retailers in Mexico are under pressure to adapt to this changing landscape, and many are turning to data-driven strategies to gain a competitive edge.

"Data is the heart of the operation and technology is an enabler. Both are important for the retail industry," says Diego Halftter, Chief Data and Analytics Officer, Jüsto.

Key performance indicators (KPIs) play a crucial role in determining the ROI of data. By identifying the most important metrics and using them to track progress toward specific goals, retailers can better understand how their data is driving business results. "Before developing a robust data strategy, it is important to understand that there are two types of data, customer and retail data, which involve behaviors and preferences and sales information, respectively," says Gelosi.

It is also essential for retailers to adapt their analytical models to the rapidly transforming needs of their businesses. As the market changes, the types of data that are most relevant to a retailer's success may also shift. By regularly reassessing their data strategies and adapting their analytical models, retailers can stay ahead of the curve. "For a clearly defined retail strategy, it is imperative to have a clearly defined goal and useful segregated data," says Eduardo Vecchio, Director General, Zingara Swimwear.

Before introducing data management tools, it is necessary to determine the information that is necessary to the company’s business strategy. “Data analysis will make businesses react and invest differently,” says Ezequiel Bagnardi, Managing Director, Pandora. While nowadays businesses are focusing on offering an omnichannel approach, they could also benefit from using data to identify the best channels for their needs, adds Bagnardi.

To thrive, effectively leveraging data is critical for retailers in today's rapidly evolving market. The risks of not doing so are significant, including missed opportunities, increased costs and lost revenue. To maximize the ROI of data, retailers must establish clear goals, develop a comprehensive data mapping strategy and adapt their analytical models to shifting business ecosystems. By taking these steps, retailers can unlock the full potential of their data and gain a competitive advantage in the marketplace.

Photo by:   MBN

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