Of 1,300 retailers registered at the National Retail Federation Show who were polled in an e-mail survey, only 41% say they are able to identify their best customers at the point of sale. The survey, conducted by Blue Martini Software, found that nearly half of the retailers -- 45% -- do not even have a data warehouse that would allow them to store and use customer information in marketing programs.
The poll focused on retailers' ability to identify customers at the point of sale, access information about those customers in real time, and act on the information to drive additional sales through not only brick and mortar stores but also other channels. A total of 41% of the retailers have adopted technology that permits them to collect, aggregate and analyze transaction data in a data warehouse. This group is using the data to identify their most valuable customers and leveraging the information through CRM activities such as e-mail campaigns, direct mail and both online and in-store loyalty programs and promotions, the survey found.
"Over the past decade, most retailers have spent the bulk of their IT budgets on supply-chain optimization and merchandising systems," says Monte Zweben, CEO of Blue Martini. "As we move into 2002, retailers are shifting their focus to providing the sales associates at the point of sale with greater information about their customers."
The survey also found that so far, most retailers who collect and analyze customer data at the point of sale are using the information to increase sales in the store. 40% engage in e-mail campaigns, but while most retailers operate web sites, only 10% engage in online promotions based in individual customer data.
100% of the retailers surveyed said they planned to invest in CRM activities in 2002. Of those, direct mail remained the most popular, with 68% of respondents ranking it a high priority, but e-mail campaigns ranked close behind with 55% ranking it a priority. 32% of the retailers said they would be conducting online promotions this year.
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