NEW YORK–(BUSINESS WIRE)–Sixty-five percent of retailers cite data management as the biggest challenge they face when trying to leverage first-party data, according to a new survey of executives conducted by CommerceNext. For its fourth annual benchmarking report, The rise to digital maturitywhich was sponsored by conversational commerce leader Attentive, CommerceNext surveyed 114 retail executives spanning all brand types and verticals to understand the progress and current trajectory of the retail industry, with a special focus on today’s main challenges and priorities.
The data indicates that brands were previously primarily concerned with how to acquire first-party data, but are now focusing on how to properly leverage that data to scale their businesses. Some 66% of DTC companies and 54% of traditional retailers see rising customer acquisition costs as their biggest challenge to meeting their 2022 goals, requiring brands to effectively use first-party data to better nurture customer relationships and personalize experiences.
“Brands are no longer questioning the importance of investing in digital, signaling that the industry has entered the dimension of digital maturity,” said Scott Silverman, co-founder of CommerceNext. “After spending the past two years figuring out which digital strategies to use to meet the high demand for e-commerce, retailers are now focused on creating what works and scaling through retention, effective data management, investing in sophisticated technologies and expanding their acquisition tactics.
Retailers are spending more on investments focused on long-term growth, including improving loyalty programs, improving segmentation, integrating advanced customer data platforms and attribution tools, and expanding engagement tactics community. Of the executives surveyed, 61% cite customer data platforms as their top technology investment priority. While brands have historically relied the most on email and promotions to collect first-party data, SMS is now catching up to email in importance and effectiveness. Some 13% of respondents plan to launch SMS collection programs this year and 17% will launch loyalty programs.
“With changing consumer expectations and rising customer acquisition costs, it is imperative for retailers to sharpen their marketing technology stacks and prioritize customer relationships,” said Sara Varni, CMO of Mindful. “This report shows that brands need to capitalize on personalized interactions with their customers and rethink how they not only capture customer data, but also use it to good effect.”
Learn more and download the full report here.
As of February 2022, CommerceNext conducted an in-depth survey of 114 respondents spanning retail and brand types and verticals, broken down as follows: 42% digital-first, direct-to-consumer (DTC) brands ; 7% digital-first multi-brand retailers; 22% of traditional DTC brands with physical points of sale; 17% wholesale manufacturers selling directly; 7% traditional multi-brand retailers; and 5% others. Of the executives surveyed, 24% were responsible for e-commerce/digital; 23% were Chief Marketing Officer/Head of Marketing; 15% were Marketing Leader (SVP, VP, Director); 9% were CEO/founder; 9% were Chief Digital Officer; 5% were Marketing and E-commerce Manager; 4% were Chief Customer Officer; and 10% held other leadership positions. The annual revenue of respondents’ businesses also varied, with 15% to $10 million; 18% between 10 and 49 million dollars; 17% between 50 and 99 million dollars; 30% between $100 and $499 million; 9% between $500 million and $1 billion; and 11% over $1 billion.
CommerceNext is a community, event series, and conference for retail and direct-to-consumer brand marketers. Now in its fourth year, CommerceNext has grown to include webinars, virtual summits, industry research and an online community, in addition to the annual CommerceNext Summit and the prestigious CommerceNexty Awards. Inc. CommerceNext magazine ranked the CommerceNext Summit among the top 5 e-commerce conferences for 2019/2020. To learn more about CommerceNext, visit https://commercenext.com.