Big Data revolution sending customer retail expectations skyrocketing

There has never been a better time to understand your customers and drive loyalty through personalised services, with more consumer data at our disposal than ever before.

 

 

But with businesses struggling to glean valuable insight from the data, and customers harbouring higher service expectations in light of the availability of their personal information, the Big Data revolution could be more curse than blessing for businesses – particularly as consumers have no reservations about switching provider if their escalating standards are not met.

 

 

This scenario is detailed in a new survey of 100 retailers by SAP, demonstrating that the much-vaunted Big Data revolution is both a challenge and an opportunity to businesses.

 

 

"Retailers have a real challenge on their hands getting to grips with the volume and the variety of data that they're now capturing through the various different touch points and sales channels that they have with customers," says Chris Osborne, retail principle at SAP UK & Ireland.

 

 

"Our research found that 88% of retailers claim to be experiencing problems accessing any kind of valuable insight from the data they have. Meanwhile, nearly half (49%) of the retailers said that the availability of data had led to customers expecting improved service.

 

 

"So there’s a double-edged sword in that consumers are providing lots of information, either directly to retailers or out through their social networks, and therefore there’s an expectation that retailers and other organisations will do something with that and they'll get a more personalised service. But then from the retailers’ perspective they're having real problems in terms of pooling all of that together and getting something from it that makes real sense and allows them to differentiate themselves."

 

 

 

 

The survey demonstrates that there is a great deal of potential for brands to capitalise on the data at their disposal, with over three quarters (78%) claiming that their customers have become more responsive to offers. At the same time, 75% of them report a rise in customer demand for a more personalised service. This, Osborne says, leaves organisations with multiple motivations to crack the conundrum of delivering a personalised service – although they are often left with the question of ‘how’.