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RETAIL ANALYTICS Big Data lessons


Banks have taken notice of how retailers operate when it comes to their branch designs and use of self-service. What could they also learn about how retailers use information, asks e-commerce and data expert Will Dymott?


loyalty has led retailers to try and squeeze insight from every piece of data to improve decision making and ultimately encourage customers to spend more.


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Retailers increasingly invest in a single customer view (mapping each customer across online and offline touchpoints), analyse web behaviour data, social data and collect product ratings and reviews.


Banks have (by the nature of the financial products they sell and regulations they are bound by) excellent information on who their customers are, what they spend money on and a joined-up view of the financial products they have bought.


However, while it could be argued that banks have better data on their customers, retailers have worked hard to turn the data they have into actionable insight allowing them to make better business decisions and increasingly automate interactions with customers, such as trigger- based marketing and loyalty scheme offers.


Marketing automation


Retailers have been very successful in using data analytics and new marketing automation technologies to drive customer loyalty through online channels. A well-orchestrated email welcome programme will provide an initial positive representation of the brand, establish the tone for the relationship with the customer and ultimately add value at each stage of the process. Sophisticated programmes will syphon customers


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ntense competition and a lack of customer


through a series of emails, tailoring the journey based upon their interaction with the emails they receive, as well as their subsequent behaviour.


Although banks have been wary of email marketing due to the high incidence of phishing, there are techniques that they can mimic across all forms of communications, be it email, direct mail or even social media, sending customers on a welcome programme that will leave them more engaged with the brand. Providing pertinent content based upon the stage of the customer journey or sending timely reminders are just a few ways for banks to achieve this.


Trigger-based marketing utilising data from your website can complement this. For example, many retailers use basket abandonment emails, messaging a customer when they have begun an action on its site (such as adding a product to their shopping basket) but not completing the process.


Personalisation


Technology developments have meant opportunities for personalisation have expanded at a rapid rate. The retail industry has jumped at this, using data and algorithms to enhance customer experience whilst driving revenue. Think about how personalised your experience feels when you shop on Amazon, with the products that are highlighted to you based on your previous buying and browsing behaviour.


Shop Direct Group – which operates Very.co.uk – also


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