Data, Statistics and Consumers

Bob Dylan told us in the ’60s that “the times, they are a changing,” but he had no idea what changes lay ahead in terms of the three Cs:  connectivity, communication and commerce. We all know that our industry is changing faster today than ever before; the rate of change is exponential. And change is good, that is, if it makes sense. The problem can be that some are paralyzed by change, they can’t make sense of it. If today’s retailer is immobilized by change, they will lose out to their competitors who are energized by it. Those who can’t move forward only see obstacles and those who are excited see opportunities.

While some are frozen in time, others are scrambling to move forward. And as they scramble, they will turn to data and analysis, as well they should, to find a portal to the future. It must be understood, however, that there is no future if retailers don’t know what they are, and if they don’t know and understand their customers. While retail analytics is a vital cog in today’s embellished retail mechanics, collecting data alone won’t propel you into the future. It’s important to ask the right questions; asking the right questions is an art, the analysis of the response is a science. But it also must be understood that there is so much data out there that it can be overwhelming, unless of course you have a dedicated person who lives for this stuff. The bear trap here is that all too often retail analytics scrutinizes consumers, they’re simply numbers on a chart. Forget about consumers, know your customers.

One of the most compelling changes in retail that often goes unnoticed is the great power shift. Back in the day, the manufacturers held all the power. When our great grandfathers wanted to buy a car, old Henry Ford told them what kind of car they could buy, and what color it would be. Then the power shifted to the manufacturer and they determined the assortment of styles. The burden of fulfillment was on the consumer, as they did all the work. And now the power player is the consumer, they know what they want, when they want it and where they want it. So burden of fulfillment is now squarely on the shoulders of the retailer.

There’s nothing new about change, it’s part of the human condition. Customers are ahead of retailers in terms of change and retailers have to catch up. Retailers have to do more than just sell, they have to show they care. So look at statistics to understand consumer trends, but if you really want to understand your customers, buy them a cup of joe and hear them out. Bend an elbow at the local coffee bar and find out what really makes them tick.