New retail strategies can be difficult and expensive to implement. These costs mean that changing retail tactics is not done lightly, but firms can increase their chances of success with proper use of data. According to the New York Times, firms moving into new retail regions are very interested in using information on their customers to improve decision-making.
According to the source, large retail chains like Walmart and Office Depot are in the process of moving into urban areas rather than the suburbs they usually occupy. The Times stated that these companies have reserves of data collected from various sources, such as loyalty card programs, that could be useful when creating regional customer demand profiles and tailoring product makeup. City locations are smaller than their suburban counterparts, meaning floor space is at a premium.
Poor data quality
could derail a company's relocation efforts. When ordering and restock decisions are made by examining customer loyalty information, it could be a serious blow to a retailer if that data is inaccurate or incomplete.
Consumer data can be used for a number of efforts to alter and specialize the retail experience. According to CRM Buyer, email marketing using shopper information has found a new life, with locally targeted deals and small business use proving that there are many uses for a well-organized customer database.