Data-Driven Marketing: Leveraging Data for Retail CMO Success

Within contemporary business, data-driven marketing has revolutionised how organisations strategise and navigate challenges. Nowhere is this influence more profound than in marketing, where the fusion of creativity and analytics has become a defining force, from generating revenue to shaping consumer experiences. CMOs in retail are undergoing their own multi-faceted evolution, tasked with taking on more dynamic roles than ever before.

No one knows this better than Mathieu Staat, previous Omnichannel General manager of Groupe Printemps and marketing director (CMO) in several companies. Over his more than 25-year international career in customer and digital marketing in the retail sector and customer relationship management (CRM), he’s experienced this evolution first-hand – and gained more than a few key insights along the way.

In this article, Staat shares a glimpse into the journey of a Chief Marketing Officer (CMO) in the retail sector – from the goals they have to the challenges they face within the digital era, and how today’s CMO can embrace the transformative potential of data in the realm of retail marketing.

The power of data-driven marketing for retail CMOs

Over the last 25 years, data has become a crucial element of data-driven marketing, fundamentally changing the role of marketing leaders. To succeed as a CMO today, you need two things: a good rear-view mirror to learn from the past, and headlights to navigate the future. In this context, data acts as the compass that guides you through the complexities of the retail landscape.

As a CMO, my primary objective is to make an impact on the business, and data-driven marketing plays a critical role in achieving that. For example, data helps highlight customer preferences and reveals what strategies are working—and what aren’t. If you’re a distributor selling the same products as others, having the best curation and identifying your Unique Selling Proposition (USP) is essential. In some cases, this might lead to creating new partnerships or co-branded products. Here are two examples of how data informs product development: 

1. Data has enabled us to understand needs in the market and create new products that fulfill those needs. For instance, in the beauty industry, thanks to data and a segmented study of the customers’ journeys, you can understand why some customer targets are not growing in value like others, and that this is due to your product portfolio lacking key products.
2. If a department store collects, organises, and accurately reports its data, it can create a goldmine for its partner brands. For instance, we developed a web platform allowing brands to access their KPIs at Printemps, better understand their performance, gain customer insight, and also discover the appetency for a product type of their ecosystem that is not sold by the brand but will be appreciated by their customer segment.

As the types and use cases for data become more complex, so too does the job description of today’s CMO. We’re no longer solely the custodians of branding and advertising; now we must wear a myriad of hats that encompass sales optimisation, Omnichannel customer experience, digital transformation, loyalty patterns, and more broadly, taking charge of acculturation across all functions of the company, focusing on data and AI. These expectations, along with reconciling ever-increasing amounts of raw data – have made the role of CMO increasingly challenging.

So, what do CMOs in retail really want?

If there’s one thing every CMO dreams of it’s this: time. More specifically, we desire enough time to create strategic plans and to build for the medium/long term. But given the reactive nature of retail, it’s not always a simple task to achieve.  

Historically, we worked on the 4Ps of marketing (Price, Placement, Promotion, Product), with annual marketing plans. However, nowadays, every Monday morning begins by analysing metrics and figures from the weekend and then devising a strategy to catch up if the numbers don’t meet our expectations. In this way, we find ourselves in a near-constant cycle of reactivity. The effect is not only counterproductive but can be detrimental; even if we anticipate a drop, heightened anxiety compels us to react hastily to recover. Consider the following story… 

A few years ago, I was contacted by the European leader of a major retailer, who was looking at figures that showed that the company was down a concerning 30%. However, when I looked at the real-time reporting on my laptop, I discovered that the figures did not reflect what she saw. As it turns out, she was reading a forecast, not the actual data. Without the week’s performance in consideration, the forecast reading was inaccurate and unreliable – and, if left unchecked, could have led to impulsive and potentially disastrous decisions being made.

We may not be able to control time, or how much of it we get to make decisions, but to a certain extent, we can control how we interact with and manage our data. My ideal setup, for example, encompasses a personalised marketing cockpit – a centralised hub where all my data resides, ready for distribution, activation, and capabilities to industrialise new use cases. This nerve center would seamlessly integrate my scores and recommendations (with the added capability to enhance & personalise content through Generative AI). Moreover, it would provide basic but insightful ROIs, enabling a comprehensive assessment of operations over time to better foster innovation and efficiency, and support optimal decision-making. That’s the dream!

What are the biggest data obstacles retail CMOs are facing today?

In a perfect world, data would always provide a rich level of insight that can be leveraged into positive impacts for the business. In reality, however, managing – and getting value from – data is not always straightforward. Here are a few obstacles CMOs encounter: 

• The hyper-reactivity of data. From day to day, data is constantly changing, growing & multiplying, which creates a maze of hurdles to navigate. From system crashes to email campaigns that don’t go out due to overloaded services to outdated site information causing customer confusion – a marketer’s daily life is certainly never boring! 

• Digital sets a blistering pace. Data and new channels have completely overturned the modern marketer’s relationship with time. Digital technology and data enable us to communicate more directly than ever before, which means that the timing of communications – and decision-making – has to increase accordingly. This can mean imposing 3-weekly or even weekly to daily animation plans, which puts extreme pressure on teams to perform, but still avoid over-soliciting customers.

• Resistance to data sharing. Obstacles hindering data sharing can arise from within the team, leadership, or between brands or potential partners due to a combination of various factors ranging from inadequate team connections to complex data marketing chains, governance challenges, data silos, and a lack of hybrid profiles. These issues impede seamless data flow and collaboration, creating barriers to effective sharing, both within organisations and beyond them.

Unlocking the potential of data-driven marketing in retail

These days data is worth more than gold. However, extracting its intrinsic value depends on understanding where and how data can be best leveraged. To do so, it’s helpful to go back to basics and consider the two primary categorisations of data: internal and external. Internal (first-party) data originate from within the business, and plays a vital role in understanding, forecasting, supporting initiatives like product launches, and fine-tuning marketing strategies. On the other hand, external data, derived from the market, enables precise decision-making, fosters business growth, and deepens insights into the consumer base. 

Integrating both internal and external data strategically provides retailers with crucial insights for optimal business decisions and potential revenue generation. This integration is pivotal in recognising opportunities for innovation and staying ahead in the competitive landscape. However, to capitalise on both forms, external data must be just as readily available and accessible as internal data. Employing user-friendly, centralised data storage solutions such as databases, warehouses, and lakes not only ensures data is protected but also makes it easily accessible through simple queries.

All things considered, the transformative potential of data in the retail sector is undeniable. When harnessed effectively, data catalyses innovative marketing strategies, insightful decision-making, and enhanced customer experiences and loyalty. By embracing the power of strategic partnerships (both within and beyond the business), overcoming resistance, and implementing systems that effectively navigate and manage internal and external data landscapes, CMOs can drive sustainable business growth, and competitive advantage within their industry, and position their business at the forefront of the data-driven future. 

Turn the value of your data into sustainable success

Devoteam is a trusted ally for retailers looking to embark on a digital transformation journey to become proficient in leveraging data, and enhance their data maturity level, unlocking opportunities for innovation and sustainable growth.