London, United Kingdom – dunnhumby today released The Future of Retail Revenues Must Be Data Led, a November 2019 commissioned study conducted by Forrester Consulting that found 85% of grocery retailers globally lack the capabilities, technology, people and processes to use insights to monetize their data and drive customer experience in the $5.9 trillion1 worldwide grocery retail market. Despite the apparent barriers, the majority (85%) of global grocery retailers view growing revenues as their top priority in 2020, and plan to do so by improving their use of data insights to develop customer strategies (84%) and to make business decisions (82%).
"Many businesses in the global grocery market are in a fight for survival with heightened competition from discounters, pure plays and other non-traditional competitors, whilst the cost of doing business is increasing, further squeezing razor-thin margins” said David Clements, Global Retail Director at dunnhumby. “We commissioned this study to better understand why so many retailers aren’t taking advantage of new revenue streams, while improving the shopping experience for their customers. We believe the study findings highlight the growing importance of the role of customer data in attaining sustainable growth.”
According to Forrester’s report How Customer Experience Drives Business Growth, 2018, retailers globally are missing out on more than $200 million in revenue on average, through failing to improve their customer experience.
Key findings from the study include:
“Time is of the essence for grocery retailers to activate the data they already have to improve the customer experience and create new revenue streams that can support their businesses into the future,” said Clements. “There is a significant amount of untapped revenue in grocery. Those that unlock the potential of their data and media assets, and improved supplier collaboration, will thrive. Retailers that fail to adapt will fall behind in the increasingly competitive marketplace.”
The full study is available for download today at: https://www.dunnhumby.com/resources/reports/forrester-future-retail-revenues-must-be-data-led
In July 2019, dunnhumby commissioned Forrester Consulting to evaluate data driven consumer strategies, and the growth of data and media monetisation in grocery retail. As part of this, Forrester conducted a global study with an online survey of 613 respondents and 13 interviews with decision makers involved in the strategy and management of data analytics and/or customer strategies at grocery firms globally.
dunnhumby is the global leader in Customer Data Science, empowering businesses everywhere to compete and thrive in the modern data-driven economy. We always put the Customer First.
Our mission: to enable businesses to grow and reimagine themselves by becoming advocates and champions for their Customers. With deep heritage and expertise in retail – one of the world’s most competitive markets, with a deluge of multi-dimensional data – dunnhumby today enables businesses all over the world, across industries, to be Customer First.
The dunnhumby Customer Data Science Platform is our unique mix of technology, software and consulting, enabling businesses to increase revenue and profits by delivering exceptional experiences for their Customers – in-store, offline and online. dunnhumby employs over 2,000 experts in offices throughout Europe, Asia, Africa, and the Americas working for transformative, iconic brands such as Tesco, Coca-Cola, Meijer, Procter & Gamble, L’Oréal.