D&A use around the world
Retailers across the world have been known to favor the “big data” also known as D&A (data and analytics) which provide them with customers purchase behavior data. The term “big data” does sound like a buzzword even though many retailers have already been using these customers data for years. According to fourth annual “Global Consumer Executive Top of Mind Survey”, the use of data and analytics among Chinese retailers and manufacturers will witness a major growth.
Global retailers and manufacturers are already about to enter an era of big data, the survey indicates that only 29% of the respondents worldwide are using data & analytics in their business activities. In the next two years, it is expected for this proportion of D&A users to double, as well as the use of technology such as predictive analytics that is expected to grow to about 59% over the next two years, whereas customer paths-to-purchase analytics will rise to 54%, Artificial Intelligence (A.I) will reach 43%.
New data collecting methods
Retailers across the word are already collecting data though different new methods:
- Real-time tracking system
- Scenario modeling
- Stress testing
The survey further showed that among the Chinese and Hong Kong respondents, nearly 2/3 of them declared that they would be using D&A by 2018 such as telematics (wireless data transmission straight to the company), geospatial or location-based technology or even VR (virtual reality). 55% of these respondents said that the use of D&A would “create relevant, personalized customer experiences”.
D&A in China
According to KPMG experts, the use of data analytics is really crucial on a market like China, as the retail market competition is tough. “As a consumer in China, I would say that we have some of the most technologically advanced customers in the world” said Jessie Qian, China Partner and Head of Consumer Markets. She also went a little deep further in her statement “To remain competitive and keep customers happy in a rapidly evolving marketplace, retailers and manufacturers require a deeper, multi-dimensional understanding of their customers. China does not have legacy issues and can therefore leapfrog straight to advanced data analytics and smart technologies to track and anticipate consumer behavior.”
The report indicated that this big data should help the brands to achieve “hyper customer centricity” using smart technologies. This will help them targeting, segmenting and personalizing their interactions with the customers.
Kevin Liu, KPMG Partner in Data Analytics Consulting declared that “There have been a number of successful examples where data analytics has contributed to customer relationship management and precision marketing in the retail industry. There is still scope to expand. To move forward, retailers should integrate their business strategies and planning into big data applications so as to elevate the business value of data analytics.”
Technologies can help companies to enhance their competitiveness, the success factors also vary according to the local market. In a complex emerging market like China, teaming up with the appropriate business partners will be important.
Jessie Qian concludes: “Some multinational consumer companies entering the China market create strategic alliances with innovative companies that can help them establish a footprint. For companies without the in-house talent, a partnership can be a valuable strategy. Partnerships can help bring in new ideas and business concepts, and help a traditional manufacturer or retailer make the Omni business transformation.”