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BI boosts success for top retail firms

4th Jan 2007
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Top-performing retail companies are accelerating their efforts to establish a tighter control of customer data through use of business intelligence (BI) technologies according to research firm Aberdeen Group.

According to a new Aberdeen Group study, 70% of these organizations track new product adoption; 100% track promotion participation; and 91% of these retailers track product preferences/affinity.

The top uses of BI for customer management include cross-selling and up-selling (56%), loyalty rewards programs (54%), and sales analytics (51%). In addition, the report points out current measurements of traditional customer buying patterns such as conversion, retention, and acquisition.

"Retailers surveyed revealed that there are great potential benefits of increased data management when it comes to their customers," said Greg Belkin, Aberdeen Retail Research Analyst.

"The report finds that nearly half of retailers surveyed believe their data is not reliable enough for analysis. The big challenge for retailers, therefore, is to get their internal data management processes in order to attract more
business and grow revenue."

But the report also finds that there are still areas of opportunity many retailers have yet to address. While 82% of respondents are using BI on an enterprise-wide
Basis, only 16% of survey respondents, and 33% of best-in-class respondents, use real- or near-real-time business intelligence-related data measuring techniques.

In addition, although 100% of best-in-class organizations measure customer
retention, retailers have noted a specific difference between data collection and actual utilisation. Only 33% of all respondents use this measurement as a top BI- related key performance indicator.

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