Data, Data Everywhere

For many retailers, customer relationship management is automatic — modern CRM software gives apparel retailers the ability to collect untold volumes of data about customers. You've probably been asked for your phone number or ZIP code at least once during the last few weeks of shopping yourself. That kind of information (and more) is collected in sophisticated data warehouses and analyzed in a variety of ways. It's one thing to have the data handy, but it's ultimately what retailers do with all that data that can result in added sales.

Retailers typically analyze three different types of data:

• Behavioral — information about the way purchasers behave, including purchase patterns, service calls, inquiries and Web traffic patterns
• Demographic/Geodemographic — information about where purchasers live, even down to the type of neighborhoods they live in
• Attitudinal — information about purchasers' core values and motivations to buy

According to the IBM Institute for Business Value report Why Advocacy Matters to Apparel Retailers, the ability to obtain deep insights into shopping preferences and needs can help retailers make better business decisions. In particular, buying, pricing and promotional decisions can be more targeted, which can create a more satisfying shopping experience for core customer segments across all channels and shopping venues.

Among other things, data can also be used to change the traditional processes retailers use to interact with customers — in many cases, the retailer can update processes based on how the customer wants to use them instead of how the retailer wants to interact with the customer.

To focus your marketing efforts more effectively, the IBM Institute recommends asking the following types of questions:

• On which customers and segments should we focus? What are the important attributes that define them?
• What are the drivers of a successful shopping experience for these core customers?
• What are the key "moments of truth" with our customers?
• How do we "lock in" loyalty for our targeted customer base?
• Do we have the right information about our core customers?
• Do we have a single view of the customers?
• What might drive more business from them?
• What will it take to focus the entire organization on the customer?
• How deeply should we commit to customer focus and where do we begin?

Don't be afraid to take the data you already have and use it in new ways by asking questions like these. You just might find a new view of your customer.

For solutions to your retail IT staffing needs, contact Vanda Alves, Retail Staffing Specialist at The Connors Group, at vanda@theconnorsgroup.com or 201-537-0011.