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Data boosts #shop therapy

If you haven't yet decided on that brand of shoes or watch or perfume you're going to buy next, don't bother. Just ask your mall - they'll know.
For, in this day and age of big data, the retailers have us all mapped.
From our likes and dislikes to buying patterns and preferences, their analytic and predictive tools can even foretell when we're going to pay a visit to which of their stores, and at what time. Well, maybe not the latter, but you'll be surprised at how close the retailers are to absolutely correctly predicting our patterns.
With e-commerce eating their lunch, physical-store retailers are looking for new ways to attract customers and increase sales. "It's about getting customers to personally engage with a retailer's brand. Sending out blanket text messages or even emails is just not going to work anymore," says Danny Karam, vice-president of consultancy Booz Allen Hamilton.
Instead of mass-texting us about offers and discounts, regional retailers should now better harness the intelligence and predictive capabilities of data, recommends Booz Allen Hamilton in a new study.

This will help them target customers effectively, reduce costs, enhance customer experience and boost ROI, says the study. "UAE retailers must leverage the value of both internal data, including customer profiles, social media, footfall and transactions - and external data, including customer social profile, traffic and weather data to curate their offering to drive sales, while also optimising their engagement with customers," Karam says.
#Hashtag #Shop #Dubai
Leveraging data during Dubai Summer Surprises can significantly enhance customer experience and boost ROI for retailers, advises Booz Allen Hamilton.
Data from platforms like Facebook, Instagram, Snapchat and Twitter can help retailers map their temperament, preferences and interests. Monitoring what's trending online or hashtag clouds used by target audiences could also help develop targeted, personalised sales campaigns.
The smartphone connections across the Arab world are expected to grow faster than the global average, at a compound annual growth rate of 19 per cent between 2014 and 2020 and this enhances the role of social media in helping retailers develop a more personal understanding of their customer base, without expensive overhauls.
To truly get value from customer analytics, retailers must focus on expanding their sources of data, consolidating siloes of intelligence, and then look not at what analytics can do for them, but what it can do for the customer. Approached in this way, data can provide actionable insights for retailers, as well as significant value for consumers by enabling the provision of relevant products, smarter services and a seamless experience.
Identifying contact points, such as stores, e-commerce sites, interactive displays where brands can learn about their customers is also critical in building personalised data profiles of individual shoppers, and in turn facilitating predictive intelligence-based marketing that exceeds the personalisation norms.
Bull(ish) in a UAE shop
"We expect the retail sector to remain strong and expand in the year ahead across the GCC, particularly in UAE and Saudi Arabia. In addition, many companies are navigating the new digital divide and facing an increasingly competitive landscape; thus, it is vital for retailers to keep up with evolving technologies and consumer behaviour," said Nilesh Ved, chairman, Apparel Group in a recent GCC Retail Report by Alpen.
As retail Foreign Direct Investment (FDI) in the Middle East grows in the wake of economic diversification, and new brands enter the market, retailers will have to tap into the vast reserves of existing data to capture the right audience and stay ahead of their competition during Dubai Summer Surprises and beyond, adds the Booz Allen Hamilton report.
"Despite challenges such as increasing competition, staff turnover, currency fluctuations, [retail] sector continued to see a range of intra-regional M&A transactions aimed at business expansion and financial investments. We also expect foreign companies to invest in regional retail entities to establish a strong foothold in the region," says Mahboob Murshed, managing director, Alpen Capital.
Dubai is now global hub for retail be it malls or even online and the retail sector has been on upswsing. According to Alpen Capital, size of the GCC retail sector is forecasted to grow at an average rate of 4.6 per cent per year for the next 5 years, from $250.5 billion in 2016 to $313.2 billion in 2021.
After witnessing a drop in 2016, retail sales are likely to grow at a slow pace in 2017, in view of the prevailing economic environment. Nevertheless, the sector is expected to recover in 2018 and grow steadily through 2021 driven by the expected rise in population, international tourist arrivals and per capita income.
"Omni channel is the best way to move forward. Retailers now need to map the customer's journey and ensure a seamless and consistent experience at every touch point. Lastly, we believe that data analytics and personalised customer experience is way to go for every retailer in the days to come," says Ved.
- sandhya@khaleejtimes.com