How retailers can beat the Amazon effect by utilizing data to win hearts, minds and wallets

As of 2018, Amazon has grown its share of online and overall retail to 49 percent and 5 percent, respectively, according to eMarketer. The company has accomplished this by being the fastest, most effective user of customer data to improve the shopping experience. Consumers have made clear through their shifting purchase behaviors that they reward the companies that personalize their experiences, use data to make the shopping process easier and faster and provide content and information that enhances their journey. Retailers that have met shifting consumer expectations by activating data have thrived, whether they're previously established ones like Apple, Sephora and Ikea or recent upstarts such as Warby Parker, Casper and Monica + Andy. While we are on the cusp of a new era of data-powered retail experiences, consumer backlash has been mounting against the expansive collection and leveraging of their data. The most noteworthy examples of this has been the volume of complaints against Facebook (and to a lesser extent Google) about how it has monetized our data for their own gain. Similarly, as more details about the power of location tracking have come to light, consumers are increasingly uneasy about how this data is collected and sold to brands to target them. And governments are acting as well, most significantly with the General Data Protection Regulation (GDPR) in the European Union and the soon-to-be-implemented California Consumer Privacy Act (CCPA). As these feelings—and regulations—spread across a wider portion of the population, retailers will need to adapt the types of data they rely on to enhance experiences. At DAC, we see immense value in the power of activating local data without running afoul of breaching customers' privacy or their creepiness sensors. Here are a few types of data that we leverage: Some of the ways this data can be activated include: The impact of leveraging and activating local data to drive multichannel retail outcomes is striking. As experienced by DAC retail clients like Bridgestone, Vera Bradley and Wickes, in-store conversion improved by more than 60 percent, online revenue by more than 30 percent and return on investment by more than 25 percent. Utilizing local data and executing these tactics will give brands a greater understanding of how consumers behave and of how to create better shopping experiences for them—without violating users' privacy or exploiting their personal data. Just as important, following such a strategy will put brands in the strongest position to fight the Amazon effect. About DAC DAC is a leading international performance marketing agency that helps brands connect with customers from the enterprise level right down to hyper-local moments. Celebrating our 50th year in business and recognized by Forrester as one of the world’s most significant performance marketing agencies, DAC is passionate about helping brands build, maintain and optimize their online presence, as well as drive traffic and conversions to their local stores. Our integrated services are built around our unique Enterprise-to-Local methodology, underpinned by technology and accelerated by our services (paid media, strategy, content, creative and data analytics). Our campaigns are best-in-class and drive transformational outcomes for our clients, which has led to our success in winning Google Premiere Partner Awards, US Agency Awards and Search Engine Land Awards. To learn more, visit www.dacgroup.com.

How retailers can beat the Amazon effect by utilizing data to win hearts, minds and wallets

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