5 Reasons to Love Smarter Data
Why smart data trumps big data
I mentioned the concept of ‘smarter data’ in a prior post, having embedded this term at the foundation of our company messaging. While some may think this is ‘bullshit marketing’ babble, I would strongly debate that. We live in a time where time is a finite resource, with increasingly more things pulling at us and absconding more of our precious time. Our general craving for simplicity, wanting to declutter while still taking advantage of all the resources at our disposal, is at the crux of this universal challenge. Data management is no different — the amount of data has and will continue to grow exponentially, with no slowdown in sight. Why wouldn’t you want your data to work smarter, not just harder, for you, to help simplify the task at hand?
It starts with the WHAT (more on the HOW in a future post) your data is and how to make it smarter. At Alkemics, we think of it in five key terms:
1. Smarter data is complete
Product data should include everything needed to market and sell effectively in today’s omni-channel world, whether that be through industry regulation or shopper demand for more information as they make their purchase decisions.
What does that look like? Typically, most retail companies tend to work with data in silos by function, like logistics information for supply chain planning or rich media content for marketing. Bringing that data together can provide your teams with a 360-degree view of the product, yielding both operational efficiency and improved branding.
Take for example the importance of using ‘hero’ images in online and mobile channels. Poor content = lost sales!
42% of abandoned shopping carts are due to poor online product content
Source: GS1 UK 2014
Check out the great work that Oliver Bradley from Unilever has led in conjunction with Cambridge University, creating open source standards for hero images for CPG products.
2. Smarter data is consistent
Data inconsistency can lead to a host of problems across the retail value chain, diluting company profits and reducing consumer satisfaction. Another GS1 UK study cited that 80% of product data in the UK grocery channel was inaccurate, with less than 25% of that data matching master data files from suppliers. Internally, the lack of data integrity can lead to stock-outs, inefficient product displays, incorrect shelf pricing, and check-out delays. What shoppers see, in terms of product visuals, descriptions, or price, isn’t always consistent across channels they shop, causing confusion, which ultimately leads to frustration, and most likely abandonment of their shopping carts.
What does that look like? It starts with sourcing data directly from suppliers, utilising their intimate understanding of their products and how to best present them to shoppers. Establishing the desired quality standards ensures that this data can be used effectively by retailers’ commercial systems for listing and other operations. Retailers should then standardise this data across all shopper touchpoints, both online and in-store.
Check out Clavis Insight and their work with leading global CPG brands to help them track and audit their online content, driving stronger e-commerce sales.
3. Smarter data is instant
As consumers, we’re constantly receiving and sending data to one another, with instant access as the new norm (think streaming video). Now think about retail companies, most of whom communicate digitally to run their businesses. In this age of digital, why should they think any differently?
The amount of time it takes to update product information is still too long, too often relying on spreadsheets and emails to enter and send/receive data. From there, it typically takes days before a shopper actually sees this data live on a site or in-store.
What does that look like? Data should be synchronized, so it’s never obsolete, with an infrastructure built for digital that can support the increasing amounts of data thrown its way.
- Recently, Walmart streamlined content publishing for their suppliers, simplifying data entry requirements and offering various avenues by which to update and publish content.
- Others, like Auchan and Casino, offer hosted product pages like the one below that deliver close to real-time updates on their e-commerce sites using the latest content shared and approved by its suppliers.
This digitally-enabled infrastructure should provide more flexibility, to adapt to new data requirements from industry regulation or shopper demand for more information (e.g., allergens, country of origin).
To make that happen, the underlying data model should allow you to create custom fields or attributes in minutes and put them in action when needed.
4. Smarter data is organised
Earlier, I mentioned the overarching trend of decluttering, fulfilling a basic human need for structure. Data, not surprisingly, is structured so it can be used efficiently, which is at the core of most master data management/big data projects.
What does that look like? In retail, structured data should reflect product hierarchies and shopping purchase dynamics, using algorithmic smarts (similar to what Facebook and Netflix use to predict which content we’d like to watch) to:
- Chain similar products to reduce out of stocks, identifying and presenting suitable substitutes to shoppers
- Enable cross-category merchandising opportunities, based on shared attributes (i.e., gluten-free snacks)
5. Smarter data is shared
As a society we typically measure success in terms of how much we have, whether that’s money, fame, or friends/followers. In retail, companies may define data savviness by how much data they collect and store. As the world continues to become more connected, we must challenge ourselves to think about data more holistically, extracting more value by making it available to all those in the retail ecosystem that need it.
What does that look like? Imagine a platform that helps you manage your data ‘shares’ similar to how you think about social media, sharing what you know about your product to deliver a better shopper experience that ultimately results in a purchase.
“Champion individuals share”
- SIR CLIVE WOODWARD, Rugby World Cup Winning Head Coach
So how do we make this happen?
There are still too many teams at retailers and manufacturers spending hundreds of hours buried under mountains of data, resorting to manual processes and outdated tools to manage timelines and data requests from retail partners.
Instead, what they need is cost-effective, efficient means of sharing information to drive business decisions and engage shoppers at the point-of-sale. Platforms have already transformed several industries, from Kickstarter for fundraising to Airbnb for lodging. At Alkemics, we believe that the power of connections drives better retail, helping companies collaborate by applying a similar platform approach. The fuel to make that happen is smarter data.
Want to learn more? Check out our website to learn how Alkemics connects retailers & manufacturers to help market & sell their products everywhere.
Or, come see us in booth #604 January 15–18 at NRF Retail’s BIG Show in NYC.
