Retail and CPG companies prioritize customer behavior analytics, yet most fail to use it effectively.
According to the 2020 Retail & CPG Customer Behavior Survey from artificial intelligence (AI) technology provider Outlier, 91% of respondents say that tracking customer behavior data is critical for staying competitive. However, 85% of respondents say that this data is only as helpful as their ability to interpret or use it in decision making, with one in three (34%) indicating their company is leveraging data and analytics effectively.
Responses also indicate retailers and CPG companies are mostly leveraging customer data for tactical purposes, such as collection and storage. Only 45% of retail respondents and 38% of CPG respondents are analyzing customer behavior for any strategic function, such as optimizing spend. And only 21% of retail respondents and 11% of CPG respondents say they are currently using business analysis tools effectively.
“When you have exactly the right information, you don’t need a constant stream of data. In fact, in times of uncertain and enormous change, like during the pandemic, being able to focus your attention on just the most critical changes is very beneficial,” said Sean Byrnes, CEO and co-founder of Outlier. “Access to specific insights each morning, combined with supporting information such as root cause analysis, helps brands shift resources and teams as needed, using rich data-driven analysis, to have an immediate impact.”