Recently QSR Magazine published a column titled “Avoiding Big Data’s Big Headaches.” The article begins by exploring the fact that every executive has an interest in growth, innovation and sustained success, but that while the concept is hardly novel, it is more complex than many imagine or care to recognize.
As I continued reading, several sections of this article particularly caught my eye.
So while I would love to pass on all the meaty goodness this article imparts in its entirety, I’ve decided to be selfish and instead extract a few juicy tidbits on which to base my own musings – mostly because the author expresses these sentiments much better than I could.
The author writes “deciphering, dissecting, and analyzing the most relevant components – the information responsible for streamlining operations, enhancing productivity, improving morale, refining menu items, and customizing marketing initiatives – is a substantial undertaking, fraught with risks (of wasted money) and worsened by frustrations (from individual managers).”
And that statement couldn't be more right.
Continuing on, the author notes a second extremely relevant and important point – that finding the information is one thing, but having the tools and teams to reveal the insights necessary to prosper is another, which only exasperates any current issues and frustrations.
“Welcome to the paradox of an environment filled with riches – a wealth of data – and inadequate resources to mine this material.”
This frustration only becomes more intense and disruptive as executives know that there are an endless amount of answers that could be revealed by examining the right data in granular detail which would then allow them to… well… do better.
And the reason for this is simple: successful solutions come from asking the right questions.
Like a domino effect, the more insights that are gained, allow you to ask questions of your performance that were previously not apparent to ask. It uncovers hidden stories that aren’t always clear in revenue reports and other performance metrics.
For example, the newly uncovered intelligence can reveal “patterns of behavior among specific groups of consumers in particular regions of the country, which will impact corporate messaging, promotions, pricing and seasonal variation of dining options.” Or, it could explain that the drop in sales at the end of a previous month was because of a shrinking market and the decline in discretionary funds among consumers.
Decoding the Message
Retailers and restaurants have barely scratched the surface of customer insights, and the players who fail to tap the vast pools of data will be left behind – because we live in a day and age where customer data gives businesses a competitive edge and serves as the foundation for greater efficiency, expansion and business development.
But it’s a critical point to note that with more customer data accumulating every day and the extensive ramp-up time involved in building an in-house analytics team, most retailers and restaurants will be best served by turning to a partner for help in managing and deriving these insights from customer data.
Because the bottom line is that the best retail analytics are based on who the customer is – using the purest data.
Feeling a bit overwhelmed at this point?
Breathe. We can help.
There are ways for retailers and restaurants to gain granular-level customer insights without maintaining cumbersome data collection infrastructures and employing invasive customer data collection tactics.
Buxton’s robust predictive models are helping retailers and restaurants identify who their best customers are, where more of them can be found, and the value potential that customers have – either in terms of dollars or visits.
Those insights derived from customer data provide meaningful answers that retailers and restaurants need to guide the execution of their real estate and marketing strategies. And by truly knowing their customers, businesses can achieve greater success by serving them more effectively, efficiently and profitably.
Have more questions and want more answers? Don't hesitate to contact us.