The retail sector is highly competitive and constantly changing when compared to every other industry in the world. Every year, many small-scale businesses are established in the retail industry. Though this scenario is encouraging for those considering starting a business, it is difficult for existing players to stand out from the crowd.
Data can be a significant differentiator in the retail business. However, in today's digital world, every customer touchpoint is a data point, and data decays at an alarming rate. You can no longer use data quality strategies as a one-time solution.
A retailer must understand where and how to connect with their customers. How to engage with them? What are the items that they are interested in purchasing? Though these are basic questions, they have a significant impact on the relationship with the customer. Customer satisfaction is the prime factor in determining a company’s success. Accurate analysis of high-quality data is required to raise the bar.
Did you know that bad data can derail your business?
When a retailer develops business strategies based on insights derived from extracted data without first ensuring the data's quality, he risks creating ineffective business models.
According to a Gartner report, poor quality data is responsible for an organization’s average annual loss of $15 million. CRM data can be a significant issue for retailers because customer data is constantly changing. It is pointless to spam the wrong person with the right marketing strategy.
Every customer expects a more personalized shopping experience. When they notice that the retailer is indifferent to them, the majority of customers switch brands. It is vital to access real-time standardized data and develop personalized marketing strategies to address this challenge and retain customers.
How can you assess the quality of your retail data?
It is not difficult to analyze and standardize the quality of your data. Companies lose sight of the importance of achieving a unified view of customer data from data silos generated by customer touchpoints and transforming it into standardized data.
Measuring and maintaining data quality on a regular basis is a win-win for both shoppers and retailers. Your shoppers will have a more personalized and rich customer experience, and as a retailer, you will be able to reduce churn and increase sales margins.
Data quality- The Key Differentiator in Retail Business
Businesses that prioritize data quality can significantly increase their retail value.
Here are some of the benefits of using high-quality data in your retail business.
Provide Unique Customer Experiences
Customers are the retail industry’s lifeblood, and they have a plethora of options to buy a product. According to Epsilon research, when brands provide a personalized shopping experience to their customers, 80 percent of them are more likely to purchase a product.
When we make an online purchase, we always see product recommendations based on our product interests, purchasing habits, and other factors. Consider the consequences of a hiccup in the data collected for a specific customer or if the data is mismatched. What kind of recommendation will the customer receive? Will the customer be satisfied?
Though the recommendations are made by AI and ML models, data quality plays a vital role. The data fed into the models must be accurate and standardized to make intelligent product recommendations and maintain satisfied customer relationships, ultimately increasing ROI.
Offer an optimal product price
The product's price determines both your profit margin and the worth of your brand. The product's price should not be too low or too high. Retailers must be aware of market trends and competitor’s pricing strategies to offer the best price.
Before developing an appealing pricing strategy, it is critical to analyze your customer’s purchasing patterns, such as whether they buy low-end or high-end products from you, as well as your competitor’s positioning and the types of customers they attract. Analyzing and managing every minute detail adds value to the business.
Price optimization of a product is highly reliant on the insights gained from data analytics. It is wise to use the appropriate data quality tool to obtain precise, up-to-date, and valid data to make sound pricing decisions and maximize ROI.
Set a Market Trend
Creating a trend is more important than spotting and following one to become a market leader. Selling a one-of-a-kind product can be a significant differentiator and may help you gain a competitive advantage in the retail sector.
When you offer a product in the market that no one else is selling, you will gain much attention from a wide range of people. The product should be distinctive in a positive way so that customers will want to purchase it, thereby creating a demand for the product.
The key to success is segmenting the market and customer data. Analyzing and deriving values based on obsolete data will bring in a great downfall for your business. It is essential to leverage high-quality data to set yourself ahead of the competition.
Deliver Products On-Time
Product delivery to the right customer at the right time is critical to increasing business value. Customers now expect their products to be delivered on the same day, which is quite tricky. Many retail sectors promise same-day delivery but fall short due to inaccurate customer data.
Delays in product delivery have a negative impact on the retailer's image. The primary cause of any delivery errors is incorrect address data entered in the customer service database. When they face delivery issues frequently, customers are more likely to stop purchasing.
Manually verifying that the customer data is correct, up to date, and valid takes time and is prone to error. AI-powered data quality tools are essential for resolving this issue. Gain access to standardized data, improve the efficiency of product delivery time and increase customer satisfaction with data quality solutions.
Ensure data quality
With high-quality data, you can increase your customer outreach and retention rate. The right data will assist you in developing strategies for each stage of your business and improving upsell and cross-sell opportunities. However, validating and maintaining data quality is not a one-time or periodic task; it should be integrated into your daily routine.
Manually completing all of this may be a time-consuming task for you. At Xtract.io, we validate your scaling business data and ensure premium quality data with our robust data quality solution. Improve the quality of your retail data with us and create long-term customer relationships.