Internet Retailer posted a byline by DynamicAction Co-founder and Chief Scientist Michael Ross: Data manifesto: 5 steps toward a data strategy for retailers. The tactical guide offers guidance for creating a data strategy for retail and becoming a leading data-driven, agile and innovating retailer. Below is an excerpt taken from the full article.
“The explosion of digital data leaves many retailers unsure of where to start in creating a data strategy.
Digital technologies are catalysing a massive shift in consumer-facing retail. Consumers have almost unlimited choice and information, they are using a range of devices being bombarded by digital marketing and are shopping in new and complex ways.
Behind the scenes, the digital world is powered by a breathtaking array of technologies, each with its own set of operating rules. Many also require completely new types of decisions—such as programmatic marketing, bids on Google/Facebook, personalised landing pages and website merchandising. All of this activity creates a vast “digital exhaust” —the big data trail of every decision, impression, click, search, view and transaction.
Any retailer, whatever its size or focus, has to work with this data in new and smarter ways. For data-led businesses [Google, Amazon, Zalando], data science is simply how they have always run their businesses—it is part of their corporate DNA. The challenge now is for traditional retailers to embrace data science in the same way. While most retail leaders recognise the need to think differently, they struggle to know where to start, what needs to change and what success looks like.
“The enterprise must see data as a catalyst for thinking differently.”
Data-led innovation creates the opportunity to think differently—to improve processes, save money and drive new revenue. But driving change in an organization is hard. As we have seen from the ongoing struggles of traditional retailers vs. Amazon, retailers must innovate or get left behind.
To reach the transformational power of data, a clear understanding and mindset must be implemented throughout the entire retail organization. The data manifesto suggests five principles that are core to evolving to become a leading data-driven, agile and innovating retailer.
1. Data is a pillar of retail strategy
- Data needs to be on the CEO’s agenda. If it’s not, any data-led initiatives are highly likely to fail.
- Retail data is a source of innovation. The enterprise must see data as a catalyst for thinking differently. If you end up making the same decisions on the same frequency, in the same silos, with the same data, same logic, by the same people with the same incentives…nothing will change.” Read the full article on Internet Retailer.
Nine West found $5.7M in potential profit within the first 4 months of using DynamicAction. “Our partnership with DynamicAction has yielded nearly 15 times return on investment. This solution embodies the art of the possible, blended with the science of technology to deliver one version of the truth.” –Monica Schwartz, EVP E-commerce, Nine West Holdings, Inc. Read the retail analytics case study.