For Retailers, Data Simplicity Is All About the SKU

In a landscape where data fuels decisions and insights drive growth, simplicity has taken center stage.

“Data is the key to driving simplicity,” Banyan Chief Product Officer Vish Shastry told PYMNTS during a discussion for the “What’s Next in Payments” series, “Business Simplicity: The New KPI.”

This shift is particularly crucial in the payments industry, where businesses use data not only to meet consumer expectations but to redefine them. Complexity, long viewed as an inevitable byproduct of data-driven operations, is being dismantled in favor of simplicity — transforming data from a burden into a core key performance indicator (KPI).

“Data normalization and governance are two main friction points for retailers,” Shastry said. “Comparing advertising campaign returns across different channels or analyzing item sales becomes challenging when [stock-keeping units (SKUs)] vary between stores.”

Banyan’s platform, which enables businesses to use item-level transaction data for a variety of applications through a single streamlined connection, shows how data simplification can drive efficiencies and unlock value for businesses and consumers. Through item-level insights, merchants and FinTechs gain a granular view of consumer behavior, transforming previously inaccessible data points into actionable insights.

“By collaborating with our retailers and FinTechs, we help them leverage a solid data governance infrastructure that supports targeted consumer experiences,” Shastry said, adding that securely normalizing disparate data streams is an essential capability when working across merchants with unique product catalogs or order management systems.

The Power of Item-Level Data

Shastry said in his view, simplicity in data is achieved when each player, from retailers to manufacturers, has seamless access to insights across various channels and markets. However, the complexity of aggregating and interpreting data remains a hurdle for many companies.

Data discrepancies arise when the same item is listed differently across various locations, whether due to packaging differences or varied SKUs. Normalizing these variations is vital to unlocking insights and data, and as Shastry pointed out, the challenge is often about making an “apples-to-apples comparison” when it isn’t always easy to do so.

“Maybe one store is selling an eight-pack of Bounty towels while another place is selling 12-packs,” he said.

Another barrier is data governance. For merchants, data is a crown jewel — one they wish to harness for consumer engagement without sacrificing control. Banyan addresses this by offering merchants the ability to control data access at the item level, dictating exactly which pieces of data are shared and with whom, Shastry said. This dual approach of normalizing and governing data enables companies to simplify operations while adhering to strict security and privacy standards.

One of Banyan’s contributions to the drive for data is its embedded loyalty program capability, which enhances the customer experience at an item-specific level. Shastry highlighted an example involving Walgreens and Bilt, where users can earn double rewards points for Walgreens-branded purchases without the need for a separate activation step. This “always-on” approach not only engages consumers but also simplifies the data exchange process for retailers, who can track consumer loyalty at a granular level.

“With embedded benefits, consumers don’t have to activate a new offer each time,” he said.

A more intricate use case lies in health spending accounts (HSAs) and flexible spending accounts (FSAs), where item-level data is critical for compliance and consumer convenience. Traditionally, consumers face the burden of manually categorizing purchases for HSA or FSA eligibility, often leading to a complicated checkout process and/or cumbersome experience gathering and submitting receipts for reimbursement.

Banyan’s platform, however, helps eliminate this hassle by automatically identifying eligible items in a transaction and facilitating HSA/FSA reimbursements post-purchase, ultimately saving consumers time and maximizing the benefits of their pretax health spending accounts.

Unlocking New Opportunities for Sustainable Growth

Banyan’s network of partnerships, which includes high-profile retailers and consumer goods manufacturers, is integral to its success in making data actionable. Retailers benefit from simplified data that supports everything from loyalty programs to media attribution and fraud mitigation. Consumer goods manufacturers, on the other hand, gain insights across different merchant environments, enabling them to optimize marketing spend and track product performance in real time.

Ultimately, transforming complex data into an accessible and actionable asset enables businesses to unlock new revenue streams and drive growth. While initial applications often focus on card-linked offers, the true potential lies in advancing the consumer experience and innovating loyalty structures, Shastry said.

“By focusing on actionable insights, companies are able to see beyond merchant-level transactional data,” he said. “They can begin to innovate, offering consumers new value propositions that drive long-term loyalty and satisfaction.”

As data continues to amass in volume and complexity, companies like Banyan provide a case for making simplicity the new KPI. In a world where digital experiences are increasingly seamless, actionable data has become more than a convenience — it is necessary for businesses seeking to move beyond traditional constraints while maintaining security and control, Shastry said.