Deloitte Releases Global Retail Data Maturity Report in Collaboration With Google has been added to Bookmarks.
Deloitte Releases Global Retail Data Maturity Report in Collaboration With Google
Provides actionable steps for how retailers can assess and improve data maturity, across eight business areas, to enhance customer experience, core sales activities and monetization opportunities.
NEW YORK, May 21, 2019 — Deloitte released today its second global data maturity report with support from Google, the latest in a series that examines how retail companies can use data to increase user engagement on digital platforms and drive value through the monetization of those platforms.
The report, “Digital transformation through data: how retailers are delivering more value through insights,” reviews how retailers are using advanced data capabilities to enhance their core sales activities and customer experience, as well as monetizing their retail platform as a media asset.
While retailers generally recognize the potential for data to drive their core businesses, only 25% of retailers are leading in data maturity, according to the report. By focusing on data quality, retailers are gaining deep insights in customer behavior that were beyond their reach in a traditional brick-and-mortar environment. The report emphasizes that data-centric retailers have an opportunity to optimize their digital touchpoints and establish an edge over less data-savvy competitors.
While responsibly leveraging customer data is a priority among retailers around the world, more than 50% report difficulties attracting the right digital talent and in getting their organizations to invest in data capabilities. According to the report, the United Kingdom is considered a global leader in omnichannel retail, while China leads the way in e-commerce market maturity in the APAC region. The United States is home to seven of the 10 largest retailers in the world, as noted in the 2018 “Deloitte Global Powers of Retailing” report. Despite this prevalence in the U.S., competitive dynamics are shifting as digitally native brands make inroads.
“As the retail landscape continues to migrate online, retailers that successfully navigate the digital shift are mining their customer data for insights to transform their operations across all channels and are better positioned to thrive in the digital economy,” said Robert Aitken, managing director, Deloitte Consulting LLP, and future of advertising initiative leader. “Understanding customer behavior is a key competitive advantage and these leading retail organizations have unlocked the power of data to drive customer insights and fuel sustainable growth.”
Key observations from the report include:
- The majority of retailers interviewed were able to diagnose issues in the user experience that caused customers to abandon journeys. However, few have built the organizational and technical agility to optimize the user experience based on customer behavior or characteristics.
- Some retailers have invested in media assets that drive compelling revenue and margin growth, in some cases three to four times the percentage margin of the core business. This relieved pressure from traditionally slim retail margins and has improved the sustainability of the overall business.
Accompanying the report is a data activation guide with actionable steps for retailers to improve their data maturity. There also is a diagnostic tool for companies to assess their data maturity and map out their digital transformation, developed by Google in collaboration with Deloitte.
“Digital transformation is a unique journey for each organization and a select group of sophisticated retailers are innovating and reaping the rewards of their first-mover position,” said Jon Schick, director, commerce partnerships, Google. “Retailers that use data to better understand their customers are best-positioned to drive customer, supplier and advertiser revenue.”
The report is based on findings from interviews with more than 60 retailers and e-commerce experts in the United States; Asia Pacific (APAC); and Europe, the Middle East and Africa (EMEA). Additionally, interviews were conducted with more than 20 technology providers, advertisers and advertising agencies. Data maturity was measured by how far along companies are in leveraging data as insights to inform business decisions. Four maturity levels were observed: Level 1 (Nascent); Level 2 (Developing); Level 3 (Mature); and, the most advanced, Level 4 (Leading).
Visit the Deloitte website to download and read the full report.
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