The Value of Data
Part 3 of our sixth post turns to personalisation, data monetisation and real-time decision making, as examples of how data holds value.
In general, we can say that data delivers insights which can inform decision making, encouraging us to take action which will increase monetary returns, or improve outcomes in other valuable ways.
Here we asked our team to share what the value of data means to them, in their experience. Some contributions are personal, others are more general. We have already heard from 6 of our specialists in parts 1 and 2.
Here are the next 3 contributions from Olatz Iturbe, Jer Colbert and Elaine Breen.
1. Olatz Iturbe (Senior BI Consultant DBI)
Personalisation and Customer Insights
By providing loyalty accounts and rewarding repeat custom, retail data detailing sales made attached to the loyalty account can deliver powerful opportunities for personalisation which in turn can drive further sales. Customers who pay cash can still be profiled if they use a loyalty card. These techniques are becoming ever more sophisticated, with tempting special offers tailored to the customer buying profile. Even store layouts can be changed to adapt to buying patterns especially when combined with basket analysis on customer types. For example those who buy petrol and coffee together compared with those who only buy petrol.
All these data driven insights are designed to increase sales values and boost profitability.
In addition, the customer perceives the personalisation as a benefit as they never miss out on deals for their favourite products.
2. Jer Colbert (BI Consultant DBI)
Opportunities for Data Monetisation
Larger companies can often monetise their data either by selling it or licensing it, creating extra revenue streams. For instance, manufacturers and vendors who supply products to large retail or distribution companies can find it valuable to access to the retail sales patterns of products that are selling via their customers’ shops. This helps them to plan better their manufacturing and supply chain activities, helping them avoid stock-outs or building up too much of the wrong kind of stock. It can be so valuable to them that they are willing to pay for access to this type of data, which benefits both the manufacturers and the retailer.
3. Elaine Breen (Senior BI Consultant DBI)
Real-Time Decision Making
In today’s fast-paced world, data collected in real-time can enhance the ability to adapt quickly to changing circumstances and market conditions. This can help a business stay ahead of the competition and increase sales.
For instance, in our experience of working with retailers, we have developed applications that allow users to update pricing information tables that can combine with other datasets to provide immediate comparisons of pricing changes in competitor outlets, so that they can respond quickly to movements in their local markets.
Where the business is based on products that are extremely price senstive this monitoring is crucial for them to remain competitive. The ability to capture this type of data is once again the driver of value delivered.
