Tip sheet

7 tips to better data

management for retailers
Data is the cornerstone of retail success today. As giants like Amazon lead the way, using data to create
sophisticated algorithms and remove friction from the buying process, all retailers need to become
more data-driven to keep up. The retailers that come out on top are those who act on the insights they
gain from the information they have on their customers. While many retailers know how important data
is to driving success, they aren’t always sure where to start and how to effectively manage their data.
In our 2017 global data management benchmark report, we found that only 39 percent of retailers trust
their data to make important business decisions. Trusting your data is a fundamental first step to getting
the most out of it. The following tips will help you understand what it takes to truly trust your data and
ensure that you’re able to gain actionable insights from what it’s telling you.

1. Put the right people in place. 2. Know what information you want.
It’s much easier to be data-driven when you have While this may seem obvious, deciding what you want
drivers that know the way. Major retailers who are to do and what information you need to accomplish it is
using data to succeed have entire teams dedicated to often the first step to leveraging your data in strategic
analyzing every aspect of the customer experience ways. Nowadays, most retailers are struggling with too
in addition to all the behind-the-scenes operations much data, as opposed to not having enough. Many are
like supply chains and inventory management. As overwhelmed with how much data they have and for 35
volumes of data keep growing, it should come as percent of retailers, the volume of information is their
no surprise that there are increasing demands for top barrier to gaining a single view of their customers.
data professionals. In our most recent global data Cutting through the noise of all the information and
management benchmark report, we found that pulling out the data that matters for your purpose is
retailers will be investing more in data roles in 2017, the challenge. Identifying what information will help
particularly in hiring data analysts. Investing in data- you achieve your goals can help you start making
specific roles helps ensure that your marketing, sales, sense of the data you have, the gaps that may exist,
operations, finance, and other departments have the and what information you don’t need to worry about
information they need, prepared by experts who truly for the project at hand. Looking for trends across your
understand the data. While data literacy is becoming data is also a good way to identify similarities among
a requirement for professionals in every part of an your existing customers and can help you determine
organization, a strong team of dedicated data experts what is working well and where there may be room for
enables the teams in other areas of the business to improvement.
spend their time making good use of the data instead of
struggling to find or make sense of it.
3. Get the tools you need. percent of their current customer or prospect data was
While technology is not always the answer, when it inaccurate in some way, collecting accurate customer
comes to data, it is definitely a key to success. Manual information is still an obstacle to overcome. With the
processes are not efficient enough to keep up with the correct contact information, you can ensure customers
vast amounts of data that retailers are collecting, and receive important communications on products and
they leave a lot of room for error. In fact, according to promotions and gather additional insight by sending
our 2017 global data management benchmark report, them surveys or reviews. Contact data also serves
human error continues to be the leading cause of as the foundation to achieving the illustrious single
data inaccuracies. From your point-of-sale system customer view.
to your data warehouse, your customer relationship
5. Enrich your data.
management platform to your inventory management
For some retailers, the data they gather through
software, the stack of technology required to support
customer interactions still does not provide them
sophisticated retail operations is immense and
with all the information they need to make the right
continues to grow in size and complexity. With the
decisions when it comes to marketing, inventory,
advent of mobile technology—the latest frontier of retail
merchandising, pricing, and so on. In such cases,
technology—there are many new options for payments,
retailers can append additional information from third
loyalty programs, receipts, and collecting additional
parties to gain additional insights and get a more
information on your customers, including real-time
complete view of their current and potential customer
behavior. While there is no one right combination of
base. With a wide range of attributes available to
platforms and solutions, having the right technology in
append to your existing data, such as estimated
place is the way to succeed with your data. And one of
household income or credit card use, you can fill in
the most important things to keep in mind is the quality
the gaps in your data that you may not be able to gain
of your data. through alternative sources of information. Let’s say,
4. Collect correct customer information. for example, that you wish to send a birthday email
Your customers are interacting with your brand to all of your customers, but you only collect their
through many channels —in your stores, on your name, address, and email address at checkout. While
website, through a call center, by email, and maybe birthday information may be available for some of your
even through a rewards or credit program. This customers through social media, purchasing the data
means that you have many opportunities to gather from a third party is likely to return a more complete
your customers’ contact information. Whether you are set of data on your list.
collecting information at the point-of-sale, through 6. Standardize data across databases.
a loyalty program, on your website, or through a Whether you are looking to achieve a single
credit card application, requiring the minimal number customer view or simply need to be able to ensure
of keystrokes by reducing the number of fields or that customers are receiving their products and
automatically filling in certain information creates are billed appropriately for their orders, linking and
a streamlined customer experience. Validating standardizing data across databases is important
information as it comes in is another best practice for powering business decisions. You may need to
to guarantee that your customer data is accurate. combine historic information in your data warehouse
Considering that in 2016, retailers estimated that 25 with newer data or you may need to unify your data

Page 2 | 7 tips to better data management for retailers

 from across databases—say in-store point-of-sale A strong data management program underpins data-driven
information with Ecommerce data—in order to observe retail—and data drives retail success. As the volumes
trends and build a full view of customer behavior. and complexity of data continue to grow, retailers will
Data standardization can help you make all of your become increasingly more sophisticated in their abilities to
data fit for purpose by standardizing formatting analyze and use data. Some retailers are already looking
across databases. Then, data matching can help you to the future of data where mobile devices will allow for
link matching fields or the same metadata to merge the collection of real-time insights on in-store behavior,
records within and across databases. From there, you and when they can wrangle and make sense of the vast
can create rules and unique customer identifiers to amounts of valuable, but unstructured data available
understand preferences and behavior such as what through social media channels. In order to head in that
Jane Smith buys, how frequently, and where—in terms direction and remain competitive in the retail space, it is
of in-store versus online and specific store locations. crucial to have a strong data management program. Getting
On an individual level, this information helps you create the right people, tools, and processes in place to maintain
more personalized, 1:1 marketing and improve each accurate information helps you stay on top of your data now
buyer’s shopping experience. On an aggregate level, and gives you the ability to leverage that data to stay ahead
this information can help you make better decisions of the curve.
in areas like inventory and site selection for new retail
locations.
7. Monitor your data.
Once you have collected accurate data and combined it
to gain greater insights into your customers and their
behavior, you will want to monitor your data to ensure How prepared are you and your
ongoing data quality. Data monitoring allows you to data for the future of retail?
review and evaluate the state of your data to ensure Improving your data management
it is always up to par and ready for use. You can see can help you engage your
where the most inaccuracies are occurring among your customers and drive revenue.
data, and track any unusual or abnormal behavior to
Download our white paper to
figure out where you should focus your data quality
efforts. When you use your data for personalization,
learn how to maximize your
you cannot risk poor quality data interfering with your personalization efforts.
marketing efforts and potentially affecting customer
perception in a negative manner. More than half of
Check it out
retailers believe that not having trusted data could lead
to downturns in customer loyalty and satisfaction, so
data monitoring is especially crucial.

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