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Third year of global Retail CIO research reveals customer insight leapfrogs promotion management in key priorities

Aldata Solution, a global leader in retail and distribution improvement software, today reveals that retailers are suffering from ‘Promotion Fatigue,’ according to its 2011 Global Retail CIO Survey. Almost half (46%) of retailers surveyed plan to switch their attention to gaining a 360˚ view of their customers (in-store, online, and via catalogue), following two years of focusing on promotions.

Getting the customer 360˚ overview right
The research of more than 130 retail CIOs globally, conducted by Martec, reveals that after the initial emphasis on promoting products through the current recession, retailers are now turning their attention to gaining a complete 360˚ customer view to better understand buying patterns and improve margins.

Allan Davies, CMO of Aldata comments: “The ongoing economic situation has altered the way the retail industry operates and forced a change in tactics in the fight for customer spend. Promotion management changing from the number one investment priority in 2009, fourth in 2010 and ninth in 2011, is just one example of this change in tactics.
“Going forward into 2011 and during the coming three years, ‘Promotion Fatigue’ will give way to more focus on understanding consumer buying behavior better and getting a full view of what, how, and where, customers are buying,” said Davies.

Forecast for demand
Other key findings show that as the cost of raw materials and fuel dramatically increases, 39% of CIOs will invest in enterprise demand forecasting to reduce overstocking and optimise the frequency and delivery of supplier orders to meet customer demand, to further reduce transport and wastage costs. This together with implementing a complete 360˚ view of customers and their buying patterns, will give decision makers improved visibility and improve customer satisfaction across all channels.
Davies concludes: “The 2011 survey clearly shows that retailers are reducing the emphasis on promotions and are now prioritising customer knowledge to support the optimization of demand-driven supply chains. The new retail reality is to gain competitive edge by enabling customers to buy exactly what they want, when and how they want it and above all, manage goods flows more efficiently."
 
Methodology
The Aldata Global Retail CIO Survey was conducted by retail industry research specialists Martec International to assist retailers in benchmarking their IT strategy and use of technology against their peers. The 2011 Global Retail CIO Survey incorporates the views of retailers from 26 countries generating from US$50 million in annual revenue, whose combined sales represent $555 billion from more than 117,000 stores. This equates to 8 percent of the total retail market in the Americas and Europe by sales. A total of 136 CIOs and IT directors in category-management-style retailers were interviewed for this report. The survey provides insights into current retail spending plans and priorities.

Martec International
Over the last 20 years, Martec has become the leading firm of retail business process experts in the world. It is also the world leader in training and consulting services for companies that sell to retailers. For more information, visit http://www.martec-international.com/index.htm