Why and when you should buy (or not buy) retail data
Source: Flickr
Is this retailer important to you?Is this retailer important to you?
Whilst this is probably obvious, it is also worth reiterating. Is this customer important to
your brands? Buying retail data represents a significant investment
and therefore should only be made in significant customers
Source: Flickr
Are the retailer’s shoppers key to your
growth?
Building on this, just because a retailer is
large, doesn’t necessarily mean that they are key to your
growth. Do you have a clear understanding of
who your most important shoppers are (those will be the ones which are key to your growth, in most cases) and do they shop, and can they be influenced, in the retailer’s stores?
Source: Flickr
What would you do differently if you had this data?
By building hypotheses around what we believe about shoppers we can understand whether or not data will support the
advancement of these opportunities. Retail data will not answer everything, so being really clear on the questions we plan to ask
helps understand whether the data will be valuable or not.
Source: Flickr
Will this data give me what I really need to know?
Retail data is great, don’t get me wrong, but it doesn’t cover everything. Sales scanning data give a great deal of what got
bought, when and where. Loyalty card data adds in ‘who’. But neither give much information on “why” shopper did
what they did (nor indeed why not). In my experience, it is the ‘why’ question which most often yields the greatest insight.
Source: Flickr
Are you using your existing data effectively?
As a gentle watch out, it is important to ensure that your team has the bandwidth and the skill set to handle the extra data. Retailers who provide data naturally expect their suppliers to use it. Most organizations we come
across aren’t using their existing data as effectively as they could, so the value that will be gleaned from additional
data is questionable. Check first that existing data is being used to its maximum.
Source: Flickr
What are the implications of not buying this data?
Of course there are other reasons for buying data from retailers. It can build relationships, and can be traded as a
variable for other concessions. Not buying data may send a
negative message, so always be careful when saying ‘no’ to an
important customer.
Source: Flickr