Retaining old customers and acquiring new ones have always been focus points for retailers. New technologies, new product choices and fierce competition in the retail space – all these add to the complexity in deciphering consumer behavior. In such a scenario, how do retailers find answers to the what, why, when and how about their customers? Customer data management is the Holy Grail for understanding consumer behavior, and if done right, can help retailers not only understand historical consumption patterns of their consumers but also predict their future buying behavior.
Today the consumer leaves behind a trail of data at almost every touch point. Social media, POP, promotional e-mailers, credit cards and not to forget customer loyalty cards- these have become major sources of consumer data for retailers to mine. However, the sheer volume of this raw data is likely to be overwhelming for a retailer if he fails to connect the data and transform it into meaningful information.