Why everyone needs to buy-into customer insight

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Why everyone needs to buy-into customer insight

There is nothing quite like the power of collaborative working. It helps to facilitate communication, disseminate new ideas and make the impossible possible at times. But in order for collaboration to be truly effective it needs to spread beyond departmental partitions and into the business as a whole.

There is nothing quite like the power of collaborative working. It helps to facilitate communication, disseminate new ideas and make the impossible possible at times. But in order for collaboration to be truly effective it needs to spread beyond departmental partitions and into the business as a whole.

This is certainly the case for that most precious company commodity: customer data, which used correctly, can dramatically increase campaign response rates, customer retention, satisfaction and revenue growth. However, while customer data has made a significant difference to marketing and other customer-facing departments its true potential to transform the profitability of a retailer is often not being realized.

In order to fully utilize the power of customer data across a retail organization every department needs to ‘buy into’ the value that data offers. After all, what is the point of the marketing department knowing that customers prefer red toothbrushes if the buying department doesn’t act on this information or the merchandisers aren’t aware of this fact. Equally, if a store layout doesn’t respond to customer insight it’s a wasted asset. In order to give customers what they want, this joint involvement is crucial.

The lack of a collaborative approach to data provides a huge opportunity for roles such as marketing and customer service who appreciate the innate value in customer insight, to demonstrate its strategic value across the business.

Customer data reveals a good deal about customers; what they love, what influences them to buy more, the prices they are prepared to pay, store layouts that work, changes that alienate them and much more. This detailed perspective when used to underpin every decision and inform every negotiation throughout the organization, can reduce cost and risk as well as improve overall retailer profitability.

Take, for example, decisions around improving the performance of a category. Which products should be launched or listed? What price should they be? Which product couplings would boost the success of a promotion? Who should the offer target? What style of promotion would be most effective?

The answers are all there in the data, ready to be deciphered and put to work providing it can be shared and translated across the business. Making the most of this opportunity requires leadership, knowledge and the right team.  For this reason, many retailers choose to enlist the help of a specialist customer insight partner. After all, collaborative working is about teamwork and drawing on the best resources available including a third-party specialist who can help grow and shape your organization.

Meinert Mellows of emnos comments, “We have worked with a number of world leading retailers to help them transform their business through collaborative sharing of data. Customer insight has helped them deliver tailored and intelligent offers to consumers, and make critical business decisions that have informed areas such as assortment, product quantities, store layout and influence merchandising and packaging design to improve the consumer experience and drive profits up.”

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