A new study from Criteo and Forbes Insights reveals that brands and retailers not only realize the potential of data but also view collaboration and pooled assets as a way to better meet customers' needs, drive value and compete.
"The Commerce Data Opportunity: How Collaboration Levels the Retail Playing Field" surveyed more than 500 global marketing executives across several retail sectors and was designed to assess data's role in ensuring retailers remain competitive in the evolving market.
"Despite the disruptive transformation of the retail industry, we are simultaneously witnessing that brands, large and small, understand the critical importance of data, are working hard to leverage the data they have, and see opportunity in working together to gain an edge," said Bruce Rogers, Forbes' chief insights officer. "Data is the great equalizer in this time of division and global executives agree that a shared approach is the key for gaining an upper hand in the battle for consumers' share of time, attention and wallet."
Key insights from the study include:
- Retail industry disruption is reshaping commerce: Brands demonstrate concern that physical-digital giants will limit access to their products, whereas retailers worry this trend will cause consumers to turn away from smaller retailers.
- Brands and retailers realize data's potential, but lack activation capabilities: Nearly four out of five brands and retailers include customer data as a key part of their business strategy. But while retailers have access to more data than brands, especially online, they are less confident than brands in their ability to activate data into actionable insights. Bottom line: more data alone doesn't necessarily translate into a greater ability to take action.
- Pooled data assets are a powerful way to get ahead: Brands and retailers see value in collaboration and pooling data assets to meet customer needs and drive value for their business. In fact, 71 percent of retailers are willing to contribute online search data to a pool. And, three-fifths of those surveyed are already part of a data cooperative, with almost seven out of 10 of those companies already happy with their collaborations as well as the data they receive. Additionally, 72 percent of marketers cite "increased revenue" as a key benefit they experience from pooled data.
- Value drives everything: Forward-thinking brands and retailers know that data is the key to providing value, and 68 percent believe their customers are satisfied with their use of data to deliver more targeted marketing. Nine out of 10 companies report placing even greater importance on delivering true value as a business driver during the past two years.
- Quality and confidentiality chief concerns: When it comes to data, 66 percent of marketers report that the biggest challenge they have with customer data is "ensuring quality data," and 65 percent cite "confidentiality of data" as a top challenge in the context of pooled customer data assets.
"Global marketing executives are fully aware of the disruption the industry faces. Leading CMOs are taking bold steps to capitalize on the opportunity created by this disruption" said Eric Eichmann, CEO, Criteo. "Understanding the value of data collaboration and pooling data is a massive step forward. Doing this within the Criteo Commerce Marketing Ecosystem, which holds a massive pool of granular shopper data and provides access to one of the best media inventories in the industry, will uniquely enable retailers and brands to connect more shoppers to the things they need and love, and maximize their company's sales and profits."