Data innovation can help retailers during a heavily digital holiday season

While the pandemic has already put a major strain on the retail industry, there are still ways in which they can have a prosperous future. Retailers that optimize consumer data to identify and meet the needs of their customers will succeed not only during this holiday season, but many more seasons to come.

As consumers rethink their in-person shopping habits in favor of safety and convenience, mobile and online transactions are expected to dominate seasonal sales.

Recent data from Accenture found 61% of consumers plan to minimize their in-store shopping due to health risks. In the lead-up to this e-commerce surge, many retailers have been forced to accelerate their digital transformation initiatives to remain competitive.

Those that have already invested in personalization and providing a safe user experience have a head start in succeeding this holiday season. However, despite providing a better chance to capitalize on this volume, those taking their first leap toward digital may feel more pressure than relief. Why? Higher volumes of online visitors pose a risk of downtime combined with the lack of brick and mortar access leaves little room for error. In fact, according to Quantum Metric, just a six-second delay in load time reduces purchase likelihood by 50%.

But for those leveraging the right tools, digital initiatives can also provide the ultimate contingency plan – a comprehensive foundation of data. By collecting and connecting pools of customer data ahead of the shopping surge, retailers can gain the insight needed to truly capitalize on the increase in shoppers by identifying the right customers and making every engagement count.

The more data retailers collect, the more opportunity they have to capitalize on it. The influx of new customer data means retailers must work harder to ensure everything is captured.

This being the last holiday season when retailers can utilize third-party cookies, retailers should take advantage of the insights they provide on new customers and their preferences. By using marketing technology tools like a Customer Data Platforms (CDP) to centralize this exorbitant amount of data from interactions via websites, social media, mobile applications and more, they can filter the data to create a comprehensive view of a single customer across all channels. That customer can then receive specific marketing campaigns that best represent their shopping needs.

Customers still expect a personalized experience - even virtually. Not only do retailers need to ensure data is being collected, but also that it is being used to improve the customer experience. Previous data shows customers are expecting convenience and "digital options" in their shopping experience – from online shopping to contactless in-person transactions.

Retailers can use this information in conjunction with new data to create targeted marketing campaigns focused on specific potential buyers. For instance, real-time data collected from CDPs that indicate a preference toward mobile payments means retailers should put an emphasis on promoting that purchasing option. Retailers that are able to filter through all the data to provide more buying options will be the ones that get the most attention.

Relationships develop online just as easily as in person. The pandemic has diminished the role of the physical store - which was the core of the overall relationship with the consumer. Now retailers have to deliver that same feeling digitally. Engaging with customers in real-time across all digital channels can help ensure the relationship remains positive. For example, CDPs have the ability to monitor customer frustration, making it easier for retailers to take action when a customer relationship may be faltering.