Database Marketing

We discuss the data landscape, the best sources for data, and how to use it to increase revenues and capture new customers.

In anticipation of its webinar on Tues., Feb. 4, Breaking Data Integration Barriers in Omnichannel Retailing, IBM's Jane Porter, product manager for retail integration, answers a few questions on what to expect during the hour-long virtual event, including her thoughts on the biggest challenges to providing a seamless brand experience, what data is most relevant in order to provide this single brand experience, and the steps retailers must take to integrate data from multiple sources.

Big data was undoubtedly one of the most buzzed about topics in the retail industry last year. What's most interesting about that is that there's not one universally accepted definition for the phrase — it means different things to different brands. For Vera Bradley, an omnichannel retailer of quilted handbags, accessories and luggage, big data means insight into what its customer wants. In a session yesterday at the National Retail Federation's Big Show in New York City, Scott Steever, senior director of strategic initiatives at Vera Bradley, discussed how the brand uses big data to make its marketing and merchandising decisions more profitable.

In today's marketplace, data and retail go hand in hand. But although leading retailers routinely leverage data to improve decision making, lower costs, increase revenue and generate better customer experiences, most retailers readily admit that they still have a long way to go. With growth-focused brands recognizing that data analytics is the key to survival in the crowded retail space, the focus is shifting toward better use of big data through innovative technologies and knowledge of current trends.

If the pundits are to be believed, big data is the retailer's nirvana, telling you the exact profile that will buy a specific product at a specific time of day through a specific channel at a specific price. There is, to be sure, more than a grain of truth in that, but the path from data collection to customer fulfillment is fraught with potential pitfalls. As anyone who has had experience with Google's AdWords’ algorithms can attest, one wrong assumption can easily send you wide enough of the target to lose tens of thousands of dollars in sales, which would be a huge setback for most retailers.

While "big data" is certainly a popular topic, retailers of all sizes struggle to understand exactly what big data is and how to use it to improve their bottom line. Many assume big data is a black box that churns out valuable insights that are then massaged into charts and graphs. Not so. Big data is a game changer that allows retailers to harness all accessible information on customer shopping behaviors and turn it into insight. However, in discussions with retailers, I've learned that many don't know how to get to these insights. This article won't solve your big data problems, but it will provide insight into how exactly merchants can look to big data for help.

Our cable bill doubled. Apparently we had an introductory rate — which lasted more than five years. We had nearly 500 channels, and nothing ever seemed to be on, so we cut cable. Cold turkey. Even returned the cable company's DVR full of unwatched episodes of nothing in particular.

Anyone who has attended a retail industry conference in the past two years to three years has likely seen a shift in focus. Where once it was all about merchandising, which led to shopper marketing, it's now all about mobile and big data. Many retailers are struggling with both of these ideas; they know they should be taking action, but exactly what action is unclear.

We live in a day and age when browsing the web is no longer an anonymous activity. In addition to all of the "+1's" and "Likes" we leave in our digital wake, we're also the recipients of retargeting (or remarketing) advertisements and emails. We've all experienced retargeting by now.

Attribution management, the science of calculating the contribution of a marketing touchpoint on conversion, brings science and reason together to answer the age-old question: What caused a customer to make a purchase? The answer to that question plays a significant role in enhancing the quality and effectiveness of interactions that retailers have with customers and prospects, which translates into increased return on investment. Attribution is even more important these days, as corner offices are closely watching marketing teams, which are operating with tighter budgets, to see if spending is being accurately assigned.