Nearly Half of US Retailers Adopt Omnichannel Customer Data Innovations to Improve Operations

In today’s competitive retail landscape, understanding and leveraging customer data have become paramount for retailers. In fact, recognizing the value of omnichannel customer data and actively seeking innovative ways to gather and utilize these insights can enhance retailers’ operations and improve the overall shopping experience.

Against that backdrop, a significant share of U.S. retailers say they are innovating or planning to innovate select digital features over the next three years, according to data captured in PYMNTS’ Big Retail’s Innovation Mandate: Convenience And Personalization, which is based on a survey of 300 retailers in the U.S. and U.K. with at least 50 store locations.

Per the study, nearly half of U.S. retailers are currently improving their ability to track omnichannel customer purchasing data, while 25% of them plan to do so within the next 12 months. Additionally, 34% of American merchants indicated that they are in the process of innovating channels through which the firm receives payments — lower than the nearly 38% who plan to do so in the next year.

When examining different retail segments, it is worth noting that grocery, general retail and automotive merchants show similar rates of adoption for omnichannel consumer data at 50%, 51%, and 55% respectively.

Pharmacy and convenience retailers, however, appear to be lagging behind, with only 33% embracing this strategy.

But while this discrepancy may be attributed to their limited eCommerce presence, the report notes that these retailers are expected to develop innovative in-store shopping experiences, potentially leading to increased adoption in the future.

Drilling down into the data reveals other areas where retailers have planned innovations. For example, 54% of U.S. merchants are in the process of improving their available payment methods, while 37% and 34%, respectively, are currently improving fraud detection and revamping their data analytics tools.

British retailers, on the other hand, lead in all three areas, with over 70% of them currently innovating available payment methods for U.K. consumers.

Overall, the importance of omnichannel customer data is becoming increasingly evident as the retail industry continues to evolve. And with the potential for increased customer retention, attracting new customers and reducing errors, retailers need to leverage these insights and introduce innovations to gain a competitive edge in the market.