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Without Advanced Behavioral Segmentation Retailers Will Fail

by Robert Hetu  |  August 2, 2018  |  Submit a Comment

Providing every existing or potential customer with one view of the retailer, where the customer has a consistently good experience in and among the retailer’s physical and digital channels, is foundational for success in unified retail commerce. However, doing so within the context of digital business means delivering consistently excellent operations in each channel, as well as across the channels, to yield consistently good experiences for millions of customers across thousands of touchpoints. This feat is proving to be almost insurmountable for many larger retailers. Results from the 2018 Gartner CIO survey indicate that 49% of retail respondents listed personalization/customer segmentation as one of their top three solution priorities.

While personalization is the goal, customer data availability, quality and consistency are major issues. Retailers are focused on loyalty programs and customer relationship management as the foundation for obtaining and mining richer customer data. However, this is only a start, as more-contextualized and targeted information on customers must be used to enhance their engagement with customers and, thus, increase loyalty.  As a result, the first hurdle is to gather all the internally available data. Once the internal data is consolidated, retailers find that there are many gaps that prevent behavioral segmentation and require additional, external data.

new customer data graphic

Gartner clients can read the full research here:

Retailers Must Grow Understanding of Customer Behavior to Increase Market Share


Additional Resources

100 Data and Analytics Predictions Through 2024

Gartner’s annual predictions disclose the varied importance of data and analytics across an ever-widening range of business and IT initiatives. Data and analytics leaders must consider these strategic planning assumptions for enhancing their vision and plans.

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Category: ai  customer-analytics  data-and-analytics-strategies  digital-marketing  retail-trends  

Tags: advanced-analytics  algorithms  analytics  consumers  customer-analytics  customer-centricity  digital  infocentricity  personalization  retail  social-media  unified-retail-commerce  

Robert Hetu
VP, Analyst Retail
7 years at Gartner
29 years IT Industry

Bob Hetu is a Research Director with the Gartner Retail Industry Services team. His responsibilities involve tracking the technology markets and trends impacting the broad-based retail merchandising and planning areas. Mr. Hetu is an expert in the areas of brand, vendor and assortment management, merchandise planning, allocation, and replenishment. Read Full Bio

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