Whoever Owns The Data Owns The Consumer Four Key Lessons For Brands featured img

Whoever Owns The Data Owns The Consumer: Four Key Lessons For Brands

Data is undeniably, and increasingly, valuable, but it can be useless if you’re not employing it correctly. Imagine you’ve moved to a new city, and you’re trying to get to the grocery store. You can find your way around by following the road signs and using general road knowledge, and eventually, you will get to your destination. But your path will be longer and less efficient than if you’d used GPS. This is your organization if you aren’t using the data you collect strategically — even more so if you aren’t collecting data at all.

Disruptor q-commerce (quick commerce) organizations have found a niche as the middleman between consumers and retailers — meaning, also, that they have first access to the consumer’s data.

Q-commerce brands with access to virtually unlimited data have a competitive advantage over legacy brands that miss out when customers opt for on-demand delivery. Gone are the days where customers had to go inside the grocery store. Gone, too, is the opportunity for brick-and-mortar retailers to collect all their customer data via loyalty rewards programs. Now, companies like Instacart and UberEats are taking the orders and, with it, all of the valuable customer data. Here are four things for consumer brands to consider as on-demand evolves:

1. Establish Strategic Partnerships

Strategic partnerships are an important consideration for both fintech and CPG brands. As the ecosystem evolves, institutions should consider how to leverage data collaboration with nontraditional entities. Traditional institutions should be careful to build a data strategy ahead of time not to waste resources on data without context.

By partnering with intention and a plan to execute, institutions benefit from having access to critical consumer data, and nontraditional entities profit from the reputation of the legacy organization. Thus, there is a combined competitive advantage for both parties.

2. Invest In Other Digital Marketing Efforts

Where loyalty programs and coupons once provided all necessary consumer data for traditional retailers, they are no longer viable if the consumer isn’t coming into the store. Post-pandemic, it is time to capitalize on marketing channels once seen as unnecessary for legacy brands.

Digital campaigns focused on search engine optimization and paid search advertising could provide significant returns for retailers by meeting the customer where they are — online. Marketing teams should seek to replicate the same feelings of trust, loyalty, and superior customer service that consumers have in-store when they engage with your brand online.

3. Invest In Direct-To-Consumer Strategies

We will not see the end of on-demand delivery anytime soon, if ever, so brands must consider how they might permeate the existing space. Large brands with the resources to invest in direct-to-consumer program development should do so as long as they can scale without cannibalizing their existing channels. Direct-to-consumer offerings provide the opportunity to gather a wealth of data that could give deep insights into consumer purchasing behavior.

4. Convenience Isn’t The Only Competitive Advantage That Matters

For smaller brands that don’t have the bandwidth to focus on direct-to-consumer strategies, lean into advantages beyond speed and convenience. Seize the opportunity to take advantage of brand loyalty, especially in smaller localities. Customer-focused brands seek to benefit from strong, lasting consumer relationships because the chance to make each experience personal for the customer when fostering a connection with your shoppers can be more difficult at scale.

Disruptor brands should also be cautious and realize that they don’t automatically win consumer choice because they are more convenient. As more on-demand services become available, q-commerce businesses would benefit from creating an online experience that provides unique value to their customers.

Data, in the end, sets q-commerce brands apart from brick-and-mortar retailers. To build a sustainable strategy, businesses should focus on leveraging their data and utilizing their resources to open new channels for customer data. Those who don’t risk being pushed out of the space and turned into merely a distribution warehouse.

Disruptor brands should continue to leverage the data they collect strategically. However, they will no longer be disruptors in the coming years, so it is important to invest now in developing strategies that set q-commerce brands apart in a soon-to-be saturated market.

 

Source: Forbes