The growth of eCommerce over the last decade has provided retailers of all sizes with an incredible array of data, both for online and brick-and-mortar operations.
Today, major retailers often employ entire analytics teams to manage data strategies, implement systems, and track, analyze, and act on data.
While tracking internal or business-specific data is vital to running a smart operation in the 21st century, analytics strategies should also take into account market-level information. The impact of the pandemic on the retail sector in 2020 only reinforced the need for merchants to incorporate external data into their analytics approaches.
At Afterpay, we aggregated and shared purchasing data from all our retail partners throughout the pandemic to help them better understand what people were buying, when, and why--see our latest Trend Report here. Tracking massive shifts--like the move from businesswear to athleisure in a WFH world--helped savvy retailers adapt to retail during COVID, and not just survive in 2020, but thrive.
As we transition into 2021, analytics will only become more important. Life will gradually return to normal, and so will shopping habits--from what people are buying to in-store foot traffic. With the right data, retailers will be more agile, adaptive, and thus, successful. Here are 5 trends to consider as you shape your 2021 analytics approach.
1. Omnichannel will be the convergence of technologies
Smart omnichannel strategies ensure your brand is present wherever your customers are--whether that’s in-person and in-store, on social media and eCommerce sites, or via new technologies like IoT smart devices. As more technologies join the omnichannel mix, including augmented and virtual reality, robotics, and AI, it will be wise to fully understand how your customers want to interact with your brand.
AI-assisted ordering on smart home devices makes sense for regular purchases like household goods or pantry staples, while AR apps are helping more people visualize furniture or decor before buying. Tech like this will become more prevalent as we continue social distancing into the new year.
2. AI will power marketing efforts
Analytics can seem daunting. The more a business tracks, the more data it has to sift through and translate into actionable strategies. That’s why it’s wise to adopt smart practices and platforms before starting the data collection process. Increasingly, AI-driven platforms are helping marketers hyper-target their customers (and the platforms they use) before campaigns are deployed, resulting in both more efficient and cost-effective marketing initiatives, and more relevant data post-campaign.
Over time, AI systems will “learn” and further optimize marketing efforts, while providing merchants with deeper data that can enable agility across operations--from inventory management to logistics.
3. Personalization will be implemented at scale
One of the biggest trends of the past few years has been personalization, which tailors the customer journey to each shopper’s preferences. Not only does this foster stronger connections between brands and their customers, but it increases consumer loyalty.
In 2021, retailers will continue a shift towards “mass personalization,” which leverages data and technology to personalize the shopping experience at scale. As customers interact with your brand across channels, data is collected on the products they browse, rate, share, save, etc. That information is then used to serve up recommendations and promotions both digitally and in-stores (via mobile push notifications, or even equipping sales associates with customer data).
4. Customer support will get “smart”
While many consumers are now used to changes in the shopping experience, including the shift from in-store to online, supply chain hiccups, and shipping delays, they will not compromise on customer service. While merchants can’t control the impact of external forces on their business, they can prepare for them by adopting a customer-centric approach to communicating with and supporting customers.
Throughout 2020, consumers lifted up and supported the brands that went above and beyond despite challenges, and adapted to continue serving their customers while protecting employees. As merchants double-down on customer service efforts, analytics will be vital to determine where to invest. Rather than having one central support center, retailers will be expected to take an omnichannel approach via chats, retail floor associates, social media platforms, video chats, and other emerging technologies, in addition to traditional call centers and emails.
5. How customers pay will drive business decisions
Gone are the days of “debit or credit?” As more consumers demand fairer ways to pay, including buy now, pay later options like Afterpay, retailers are taking a closer look at how payment methods drive metrics ranging from cart size to loyalty. Increasingly, customers are opting for Afterpay in place of credit or debit cards (or cash, for in-store shoppers), leading some retailers to integrate BNPL options in their sales and marketing efforts.
Additionally, merchants that offer Afterpay receive actionable data about their customers, which can help guide business decisions ranging from inventory management to promotions. Incorporating this information into overall analytics strategies will help retailers succeed in 2021 and beyond.
Interested in learning more about how to integrate Afterpay in your analytics strategy? Reach out to our team today by clicking here.
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