Translating Customer Behavior into Concrete Actions
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Translating Customer Behavior into Concrete Actions

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Cinthya Alaniz Salazar By Cinthya Alaniz Salazar | Journalist & Industry Analyst - Wed, 05/03/2023 - 12:09

The retail and ecommerce market in Mexico is fiercely competitive, with businesses vying for customer attention and loyalty in an ever-changing landscape. In this hyper-competitive environment, long-term winners will be determined by their ability to leverage consumer big data to develop increasingly personalized shopping experiences across multiple channels, according to industry leaders at Mexico Business Forum 2023. 

"Having a 360-degree view of a consumer is not enough to develop a personalized and consistent shopping experience. In today's market, retailer success comes from understanding the why behind the big data of consumer behavior,” says Sofía Escamilla, Country Manager, The Body Shop. Delving deeper into the motivations and desires that drive consumer behavior across segment groups will help companies develop more strategic business processes. 

Mexico's e-commerce market has experienced accelerated growth in recent years, driven in large part by greater social adoption and the increasing availability of digital technologies. As the market continues to expand, businesses are recognizing the need for more advanced big data analysis skills to keep pace with the demands of today's globalized economy. In particular, the ability to collect and analyze large volumes of consumer data across available channels has become a critical factor in driving success, says Marco Di Santo, Managing Director Mexico, Bvlgari. By leveraging this data, businesses can gain a deeper understanding of their customers' preferences, behaviors and needs, and use this knowledge to develop more effective strategies and personalized experiences. This capacity will be central to companies’ ability to “replicate and or adjust channel user experiences as they develop an omnichannel business strategy,” says Kelly Kroger, CEO, C&A Mexico

As businesses in Mexico increasingly recognize the importance of big data analysis, they are turning to technology to make sense of the vast amounts of consumer data they collect. Artificial intelligence (AI) and machine learning algorithms are among the most powerful tools available, enabling businesses to analyze customer behavior and preferences on a massive scale. By using these tools, companies can develop more personalized experiences for their customers, tailoring everything from product recommendations to payment options based on individual preferences. However, the use of these technologies requires a significant amount of expertise and knowledge, as well as the ability to manage and analyze large data sets. To take full advantage of these capabilities, organizations must upskill and reskill their employees, providing training in data analysis and other relevant areas, underscores Escamilla. 

“Analysis skills are still underdeveloped across the market, highlighting the need to modernize skills to correspond with the adopted technology,” says Kroger. Remote education is a tool that can be leveraged to achieve this, allowing for a collective timeline.

In addition to driving personalized experiences, technology can also help organizations refine their overall business strategy, particularly when it comes to internal back-end processes and payment options. For example, fashion companies with e-commerce platforms need to have clothing items ready ahead of time to take pictures of the merchandise, which will allow them to launch new seasonal products in parallel to brick and mortar stores. This implies deploying an strategic logistical coordination that allows companies to ensure the customer receives consistent, indistinguishable, quality experiences. Meanwhile, companies are cognizant that they need to provide payment services that fit their targeted demographic, which is a key component to a frictionless experience. Companies like Rappi, which operate on three business verticals (consumers, partners and delivery people), require careful monitoring to ensure consistent quality of service for all stakeholders. Overall, companies should be striving to “align business processes with consumer needs and expectations for greater economies of scale,” says Teresa Gutiérrez, Country Manager, Rappi

All in all, in Mexico's hyper-competitive retail and e-commerce market, investing in emerging technologies is critical to success. With globalization and faster shipping dictating the need for seamless operations across borders with different tax systems, businesses must adapt to keep pace with the competition. Moreover, sustainability and blockchain technology are emerging as important differentiators in the eyes of increasingly environmentally conscious consumers. Therefore, even if a complete strategy is not yet in place, retailers cannot afford to wait and must invest in technologies now to remain competitive. Those who hesitate to invest in emerging technologies risk being left behind in the medium-term, as the market continues to evolve at a rapid pace. It is crucial to understand that perfecting a technology adoption strategy is an ongoing process, and waiting for the perfect plan can lead to a late start and missed opportunities, says Gutiérrez. The key is to start investing in technology now and iterate along the way, embracing the agile mindset that is essential to success in today's retail and e-commerce landscape.

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