How Retailers Can Create a Data Foundation to Accelerate Digital...

How Retailers Can Create a Data Foundation to Accelerate Digital Transformation

Retail Tech Insights | Wednesday, October 26, 2022

The state of digital acceleration that was sparked by mass quarantining during the COVID-19 pandemic changed how businesses operate, and consumers behave.

FREMONT, CA: Successful retailers recognise that digital acceleration is essential and that digitalisation alone is insufficient. The COVID-19 pandemic's widespread quarantining generated a situation of digital acceleration that altered consumer and business behaviour. Gartner reports that 65 per cent of executives boosted the speed of their digital projects in 2021, and this faster pace must continue. Those who have made this faster pace standard in the retail industry, concentrating their strategies on digitisation and data integration, have seen the most success.

They will see more retailers utilise unified data platforms as part of their accelerated digital strategy as they move through the second half of 2022 and into 2023. Unified data platforms assist businesses in laying a strong data foundation by offering a reliable and integrated repository for data storage and analysis across all business components.

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Businesses can genuinely know and understand their customers with a solid database, allowing them to monitor shifts and changes in customer demographics, purchasing patterns, and values. Businesses can rapidly and efficiently adjust their lead generation strategy to this thorough data analysis, which boosts sales. Unified data platforms increase retailers' ability to build significant relationships with their customers and assist retailers in selling more goods.

As the recession begins, they must concentrate on improving digital transformation efforts to enhance consumer experiences and increase corporate agility.

Supply Chain Agility is a Must for Struggling Businesses in 2022

Like the retail sector, the restaurant and consumer products sectors experienced many intricate difficulties throughout the pandemic. New public health regulations and widespread quarantines resulted in diminished in-person dining capacity, income losses, and general goods shortages. Restaurants needed to change their approaches to re-engage the public.

93 per cent of respondents McKinsey contacted regarding the challenges they were facing stated they wanted to make their supply chains much more flexible, agile, and robust. This is when having a strong database might be useful.

The xDM platform for master data management was implemented by Chipotle (CMG: NYSE) as a step toward increasing the adaptability and agility of its supply chain. Before adoption, there was potential to enhance metrics analysis across numerous systems and departments to enhance data management. Chipotle's response times to supply chain problems, product modifications, and particular circumstances experienced by specific restaurants were slowed down by this subpar data handling. To regain the loyalty of Chipotle customers and staff nationwide, digital acceleration was required.

As a result of the xDM platform's ability to streamline Chipotle's data into a comprehensive and centralised data hub, the restaurant chain was able to improve efficiency and regain full control over all of its 2,500 locations' information. As a result, Chipotle established a customer loyalty program, anticipated supply chain hiccups, and prepared contingencies for them.

Strong Data Management Increases Brand Visibility and Relevance

The retail environment in 2022 has drastically changed, emphasising e-commerce. According to Morgan Stanley, the global e-commerce market will account for 21 per cent of all retail sales by 2021, up from 15 per cent in 2019. By 2026, the market is anticipated to reach a value of USD 5.4 trillion.

Rapid digital acceleration and foraying into e-commerce are necessary to build a data foundation and keep up with the expanding retail sector. This was especially true for Red Wing Shoes, a venerable family-owned shoe retailer.

Red Wing Shoes, a 1905 company, boosted its digital approach by establishing a centralised data hub. For this company, preserving visibility and customer loyalty required a 360-degree strategy devoted to data management while giving the customer's wishes and needs a top priority. To better understand its clients and what they want for a shopping experience, Red Wing Shoes employed the hub. Red Wing Shoes was able to keep its traditional brand identity while appealing to a customer base that enjoys e-commerce possibilities for data insights.

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