About 85 per cent of groceries worldwide don’t have enough resources such as technology, people and processes to use insights to monetise their data and drive a better customer experience.
That’s according to research agency dunnhumby’s latest report, The Future of Retail Revenues Must Be Data Led.
Most (83 per cent) of Australian grocery retailers are prioritising revenue streams for 2020 and want to improve their data insights to develop customer strategies (84 per cent) and to make business decisions (82 per cent).
“Many businesses in the global grocery market are in a fight for survival with heightened competition from discounters, pure plays and other non-traditional competitors, whilst the cost of doing business is increasing, further squeezing razor-thin margins,” said David Clements, global retail director at dunnhumby.
The study said that 15 per cent of global grocery retailers are leaders, but most fall behind. Almost all global retailers (96 per cent) are encountering challenges when they try to use data to develop customer strategies while 100 per cent of Australian retailers are struggling with this.
Most groceries are already capitalising on the revenue potential of customer data and in-store/online media channels. In terms of Australian supermarkets, 57 per cent use social media, 54 per cent use mobile apps, while 54 per cent utilise customer data and promotions data.
Only 42 per cent of grocers are currently selling branding on their website and only 37 per cent offer media placements in-store and on print media.
About 96 per cent of retailers who offer media opportunities for CPG suppliers on their apps saw a profit lift over the last 12 months, with 40 per cent seeing an increase of more than 10 per cent.
“Time is of the essence for grocery retailers to activate the data they already have to improve the customer experience and create new revenue streams that can support their businesses into the future,” said Clements.
He added that those who use their data and media assets will thrive compared to those who fail to adapt.