Protect Retail Data and Improve the Customer Experience Through Modernization 

Inventory planning, demand forecasting, and pricing — all of which require robust data analytics — are the top areas of focus for CPG and retail companies. Massive amounts of customer data are generated every day to power analytics. Unfortunately, a November 2023 survey of 100 retail executives at companies with a minimum revenue of $1 billion conducted by SoftServe and Wakefield Research shows that nearly half of them (46%) believe their company invests in new technology that does not leverage or integrate well with data and analytics.

However, the survey also reveals that 99% of retailers plan on increasing investment in new technology in 2024, with an average increase of about 10%. Investing in infrastructure modernization (a priority for 38% of those surveyed) is an effective way to upgrade data management systems, migrate to the cloud, and take advantage of cutting-edge technologies such as AI/ML and real-time analytics. This unlocks the full potential of data and develops an agile, data-driven business model that makes informed decisions and optimizes operations.

Facing ever-changing customer behavior and expectations, 48% of enterprise retailers are prioritizing improving the customer experience. Retail enterprises can anticipate changes in consumer preferences and maintain a competitive advantage by embracing cutting-edge technologies that harness the full power of customer data. Improving practices and strategies for data governance paves the way for improved business models, providing actionable insight from in-store purchases, online behavior, and social media interactions.  

Better data enables:

• Highly personalized marketing in the form of targeted campaigns and product recommendations. 
• Demand prediction and inventory management to plan for seasonal fluctuations in product demand and reduce costs by avoiding overstock and optimizing the supply chain. 
• Real-time analytics to increase agility with quick decision-making and immediate responses to market changes by integrating and analyzing data as it is ingested. 
• Strategic pricing that provides a competitive edge and maximizes profits by monitoring competitors' prices and observing real-time demand fluctuation to dynamically adjust pricing. 
• Data-driven decisions to eliminate guesswork and improve planning. 

Customer journeys are no longer as simple as a trip to a store or a purchase from a retail website. The process may begin on social media or a mobile device, then continue on a website for further consideration, and ultimately conclude with a pick-up at a local store. There are, of course, a myriad of other touchpoint combinations that are possible and result in numerous different customer journeys. Consumers expect a smooth transition from channel to channel. According to the SoftServe/Wakefield Research survey, 30% of retailers view omnichannel development as a top challenge.

Modernized data provides an integrated view of customer interactions to enable omnichannel shopping. Retailers understand behavior and offer consistent information as customers shop in various channels. It boosts the customer experience across all channels and drives conversion.

Centralized data from a variety of sources is analyzed to provide a holistic view that identifies potential vulnerabilities. One-third of those surveyed by SoftServe and Wakefield Research rank consumer data management and protection as a top concern. Retailers can proactively implement robust security and address risks before they arise.

  

Big data analytics, which has only been implemented by 40% of respondents in the study, helps keep customer information safe. Analyzing data through real-time monitoring recognizes patterns and detects anomalies. Retailers then flag aberrant behavior to prevent fraudulent activity and notify customers of identity theft and compromised cards or accounts to build trust and protect finances. 

Data modernization is a complicated process that requires technical expertise and understanding of big data. Enterprise retailers often have vast amounts of data siloed in different systems and databases. This makes it a challenge to centralize and analyze the data effectively.

 

To achieve the full benefits of data modernization, retailers need IT partners to: 

Embracing data modernization positions retailers to set the standard in retail. Your customer data goes largely unused when it is trapped in legacy systems and siloed. Improving data infrastructure and data management processes allows your retail business to gain a competitive advantage by harnessing the power of cloud computing, AI/ML, and advanced analytics.    

Our retail experts determine which data should be prioritized for modernization to provide the best ROI. Years of experience and partnerships with GCP, AWS, Microsoft, Databricks, Snowflake, and Confluent leave us well-positioned to modernize data and boost analytic capabilities. 

Let’s talk about how SoftServe partners with retailers to implement end-to-end data solutions that enable cutting-edge solutions to improve your bottom line.