From Aisles to Insights: The Role of Retail Data in Loyalty and Experience
Retailers’ 2024 holiday season showed resilience and promise, as consumers embraced the festive spirit despite initial concerns about inflation and economic instability. The industry’s holiday performance outpaced expectations, with consumer spending between Nov. 1 and Dec. 24, 2024, up 3.8 percent year-over-year — surpassing forecasts by 0.5 percent. Additionally, year-over-year traffic was up 14.8 percent during Christmas week (Dec. 22-28) and 20 percent during the week of New Year’s (Dec. 29, 2024-Jan. 4, 2025).
Retailers’ efforts to refine operational strategies through data-driven insights amid rising supply chain, labor and operational costs clearly paid off in 2024’s close. Now, the challenge is maintaining the goodwill forward momentum in 2025. Modern consumers — particularly those in Gen Z — demand seamless, tailored interactions whether shopping in-store or online.
To do it, retailers will need to dig deeper into the customer-side of the equation. Luckily, their existing data-driven ecosystems can also be used to keep up with these shifting consumer needs.
One Step Back
Retailers will increasingly rely on technology to make the most of the opportunities the market now holds. Recent estimates project that the retail technology market value will reach $131.6 billion by the end of 2025. Analytics ecosystems will no doubt continue to drive this spending, as data is no longer a luxury; it’s a necessity.
To achieve their goals, retailers may need to take one step back from analytics investments and focus first on their data collection processes and programs. Many have already tapped into a wide range of data sources — from supply chain operations, merchandise and operational metrics and beyond — to optimize staffing levels, inventory management and store layouts based on real-time insights. But to get the full picture, retailers will need to engage with other types of insights as well.
While operational metrics can help retailers better understand shopper preferences, they will need to start digging into other types of data to get a sense of how their shoppers move within their stores. Shopper-focused metrics like dwell time, journey maps, cart abandonment and more are the key to unlocking the personalized promotions and seamless omnichannel experiences today’s shoppers crave. When integrated into existing operations analytics programs, these new areas of insight will supercharge data-driven decision-making.
Two Steps Forward
Once retailers have these insights and have integrated them into their analytics systems, they can start moving forward with meaningful change. That will look different for every business, but there will be a common thread for most: open communication.
While many retailers have made remarkable investments in new technologies, there’s more opportunities to deliver the insights gained to those on the front lines — store associates. With data at their fingertips, store associates can make better decisions on how best to help shoppers, increase basket sizes and produce more sales. Retailers should continue to look for ways to leverage this tactic to its full potential.
Consider this: Recent research highlights a significant opportunity as 40 percent of store associates feel anxious at work, with many citing pressure to satisfy customers as a leading stressor. An equal 40 percent believe that their employers can further optimize their operations by embracing modern technology, and 54 percent express a desire for more investments in improved tools. Prioritizing transparency will be critical to the success of data-driven customer improvement efforts in the months to come, empowering both employees and shoppers to experience and appreciate the benefits of these advancements.
Seizing the Data Advantage
As the retail industry continues to evolve, in-store shopping remains integral to the consumer journey. Yes, shoppers enjoy the ease of online purchasing, but they also enjoy the tactile experience of browsing aisles to discover new products. This presents an opportunity for retailers that embrace data-driven customer journey improvements, as they will be positioned to bring customers satisfying experiences from end to end.
Tony D'Onofrio is the president of Sensormatic Solutions, the leading global retail solutions portfolio of Johnson Controls.
As president of Sensormatic Solutions, Tony D’Onofrio is responsible for strategic planning initiatives that support the brand’s ongoing innovation and industry-leading solutions. He has spent over three decades in the retail industry, and his work has played a prominent role in retail’s journey into the digital era both as a business leader and a consultant.
Tony’s work is informed by a passion for retail and a deep knowledge of the power of technology to transform operations. Of his more than 30 years in the retail industry, Tony spent more than 20 of those years at Sensormatic Solutions, most recently as the Chief Customer Officer in 2018. Since that time, Tony was an advisor and board member of leading computer vision and Internet-of-Things companies, led a global security business, and mentored multiple companies in Silicon Valley. His career has included executive roles in both security and information technologies including NCR, Midsouth (IBM Integrator), and more recently Prosegur Global Retail.
Tony holds an MBA from Cleveland State University and is a graduate of Case Western University’s undergraduate program. He is also CEO of consulting and advisory group TD Insights, one of Thinkers360’s Top 10 Global Thought Leaders for Retail, and a recognized global top 100 retailer and technology influencer. Tony is also a recognized global social media influencer in retail, security and emerging technologies, hosting long-standing podcasts, webinars and speaking regularly on new retail technology and futurist retail trends.
