Deriving insights from data in order to increase revenue in retail industry

Today’s retailers have an excellent opportunity to cash in on the data boom offline and online. However, a lack of the proper infrastructure can be a significant blocker in monetizing the information hidden in the siloed internal IT system. Customer Data Platforms (CDP) are the answer to these challenges. They enable retailers to unify customer data and – based on them – derive meaningful insights on how to improve customer engagement in the name of higher ROI.

Customer Data Platforms are not new inventions; retailers can buy or build the ones that suit them the most, choosing from various tech vendors. In the following case, however, the client decided to go full-blown customization as the desired software was meant to serve internal needs and become a SaaS product for sale.

Increase revenue with data

Business requirements were to create a unified data environment with intuitive UI to enable retail owners (most likely traditional “brick-and-mortar” stores) to derive insights on how to:

• generate more revenue, profit, or savings
• and help lead marketing campaigns
• to get an overview of their businesses

The client aimed to build the SaaS app that will be sold to retail owners’ operations in various sectors: clothing, supermarket, books, food, etc. This is why the app logic had to find a common denominator for almost any retail.

Breaking data silos

Addepto team collected and unified the data under one analytics platform by connecting data from the web page, social media, CRM leads, and traffic information with data from brick-and-mortar stores. By breaking the silos, Addepto was able to provide retailers with more insightful reports for retail decision-makers and predictions.

However, there were some challenges, and the main one was integrating all the systems already harnessed to analyze data. Most worked independently, focusing on just one area. The desired approach was integrating them to create a unified data environment. Also, installing a dedicated set of sensors was impossible, so the only way to complement the in-store data gathering was to get the most out of the data already gathered, potentiate the existing structure and connect it with the platform.

Transactional data is a gold mine for retailers aiming to increase the average order value, improve clients’ retention, boost loyalty, and so on. It is a no-brainer in post-pandemic eCommerce peak, but in this case, we were handling not only online data. We had to find a way to combine the offline and online data to get a wholesome overview of customer journeys that are no longer exclusively on- or offline. Thus, although the idea was pretty straightforward, we had to dive deeply into the client’s infrastructure and find a way to streamline data workflows.

–  Piotr Danielczyk, Data Scientist at Addepto.

Harnessing on – and offline data to drive sales

The platform built by Addepto Team enabled the retailers to monitor human behavior to optimize the omnichannel experience. The client can use it for their own needs and blend the off- and online sales and marketing activities to create a consistent customer experience, and – as the platform is delivered as SaaS – can profit from selling the access to the software to other retailers.