Grocers Don't Know How to Monetize Their Data
Data is king, but a new study released by Dunnhumby and conducted by Cambridge, Mass.-based Forrester Consulting shows that grocers aren't ready to leverage the data they're collecting across a number of different channels. The study, "The Future of Retail Revenues Must Be Data Led," found that 85% of global grocery retailers lack the capabilities, technology, people and processes to use insights to monetize their data and drive customer experience.
That's a large number that can be further unpacked by some of the other study findings. A huge 96% of U.S. retailers experience challenges using data to develop strategies that drive growth.
While 53% of respondents use customer data, such as from loyalty programs, to make decisions about customers, fewer than half use other sources, such as social media (49%), point of sale (49%), mobile app (46%), promotions data (46%), customer location (43%) and web metric/clickstream data (43%).
U.S. grocers, however, have big plans for data, with 76% of respondents making it a priority to use data insights in business decision-making for promotions, more than the 59% of global respondents.
“While the vast majority of grocery retailers across the globe agree that increasing their revenues for 2020 is their top priority, it is striking that less than 45 days to the new year, the majority of these retailers lack the capabilities, technology and expertise to use insights to monetize their data," said Jose Gomes, president of North America at Dunnhumby. "But for those retailers who are already monetizing their data, the results are impressive. In fact, Forrester found that U.S. retailers, who are effectively monetizing their data, saw an average uplift of 96% over the last 12 months."
Dunnhumby employs more than 2,500 experts in offices throughout Europe, Asia, Africa, and the Americas, working for brands such as Tesco, Coca-Cola, Meijer, Procter & Gamble, and L’Oréal.