It’s easy to say retailers should make better use of data, but what does that really mean? And how can businesses ensure their data is giving them something meaningful?   

As with any technology, there can be a tendency to embrace data for the sake of it. But metrics only mean something when they tell a story – how are customers responding to a new ad, for example, or how do they feel about a broader issue relevant to your brand? What impact does repurposing content on a different social network have on sales?   

Retailers have also been traditionally wary of hyper-personalisation and advanced use of data for fear of appearing creepy – and it’s true that feeling spied on is something few consumers warm to.    

But there is a different way to approach the use of data, which both improves outcomes for consumers and gives retailers meaningful sources of insight and uplifts in sales. Treating data as a listening exercise, and an attempt to understand more about how people feel, what they want, and what’s most useful for them, is, for some brands, leading to a far more meaningful set of metrics that embrace storytelling and insight, rather than transactional dashboards and metrics for the sake of it.    

This is particularly important for brands who want to be seen as empathetic and caring – and is likely to become more relevant for almost every brand as the cost-of-living crisis intensifies and consumer behaviour changes in response. Supporting shoppers as they deal with often worrying changes and economic uncertainty can both help retailers get through tricky periods, and emerge stronger as a result. But how can it be done?  

Ask questions: It might take time to build the level of trust required, and to understand the best channels and time for doing so, but if it’s done correctly consumers are often glad to be asked questions. They want to share what they want or need and appreciate feeling like they matter.  

Use zero party data: Generating and using zero party data is a goal for most businesses in the wake of third-party scandals such as that of Cambridge Analytica, where personal data belonging to millions of Facebook users was collected without their consent by the British consulting firm. Zero party data is often more insightful and more relevant and will help brands avoid giving consumers that sense of being spied on.  

Embrace empathy mapping: Building trust is a crucial goal for marketers and should be among their top priorities. To get started on the journey, it’s important to imagine things from a customer’s perspective. Empathy mapping can help teams understand the shopping journey from a customer’s point of view and enable them to more easily identify problems to solve and any hurdles to overcome.  

Display your values: Using content to display a brand’s values is something many retailers already do well. Cosmetics company Lush, for example, is built on values of cruelty-free cosmetics and ethical trade. The way its products are made is a core part of that, and the brand makes sure its content backs that up and explains its stance, with videos giving in-depth insight into how products are made and what ingredients are used.  

Acknowledge challenges: Showing up for customers experiencing challenges can help a brand build trust, a stronger relationship, and ultimately more loyalty. One obvious recent example was the pandemic; in 2023, it is likely to be the cost-of-living crisis. Offering discounts is also not the only way to express empathy and solidarity in this way. If a brand offers tiered loyalty or points schemes, it could mean bumping people up to a higher level of service or offering something extra via that scheme. Finding ways of acknowledging things are hard, and that the brand is keen to support will reap rewards.  

Move away from a transactional approach: Marketing teams’ KPIs are often based on sales, profit and return on investment, and moving towards a more empathetic way of doing business will require a different, or broader, approach. Shifting marketers’ mindsets, and the mindset of the business, away from being purely transaction to a more empathetic one will need to be underscored by different ways of measuring success. While this is challenging, it is likely to be necessary in order to achieve a more human way of doing business.  

Shifting a business’s use of data to be more empathetic is likely to improve outcomes for consumers, build loyalty, and ensure the brand is fit for purpose as Gen Z and Millennial customers demand different approaches from the retailers they purchase from. While it might require a shift in internal mindset, doing so is likely to future-proof the business as the nature of consumption changes.  

Slalom partners with many retailers on their data journeys with the ultimate goal of having more engaged, loyal, and happier customers, whilst also ensuring they are fully listening to their customers and responding to what you hear with empathy and interest. If you are looking to embark on a similar journey, we’d love to have a conversation.