How Public Online Data is Helping Retailers Win the Holidays

The holiday shopping season seems to start earlier each year, and 2022 is no exception. With ongoing supply chain disruptions and economic uncertainty, cautious consumers are checking off their shopping lists long before the traditional Black Friday and Cyber Monday sales events. According to a recent survey by Vanson Bourne and Bright Data, over half of UK respondents and two-thirds of US respondents plan to shop ahead of these major discount days to ensure they get their wish list items on time.

For retailers, this extended holiday season presents both an opportunity and a challenge. More time to capture sales is always welcome, but competition will be fiercer than ever as price-conscious shoppers hunt for the best deals. In this environment, data is a retailer‘s most powerful asset. By collecting and analyzing public online data, savvy retailers can optimize prices, personalize promotions, streamline inventory and supply chains, and ultimately deliver an exceptional customer experience that builds loyalty and drives revenue.

An Early Start to the Holiday Rush

While the holiday shopping bonanza traditionally kicks off with Black Friday and Cyber Monday sales, this year many consumers aren‘t waiting for those events. Vanson Bourne found that 51% of UK shoppers and 66% of US shoppers intend to start making purchases ahead of the big sales days. Wary of potential shipping delays and out-of-stock issues that plagued last year‘s holiday season, consumers are taking a proactive approach to ensure they can check everything off their lists.

This early start means the holiday shopping season will be longer and more drawn out than usual. Retailers can‘t afford to wait until late November to roll out their holiday strategies. They need to start engaging customers now with compelling offers and personalized recommendations. This is where real-time data comes in – by constantly collecting and analyzing information from across the web, retailers can spot emerging trends, optimize prices, and adapt quickly to changing consumer needs.

What Holiday Shoppers Want

So what exactly are consumers looking for this holiday season? Vanson Bourne‘s research reveals some key priorities:

1. The best deals: 69% of US shoppers and 56% of UK shoppers plan to use price comparison websites for their holiday shopping. 74% say they would switch from their preferred retailer if they found a better price elsewhere. Clearly, cost is a major factor this year.

2. Discounts and promotions: 56% of respondents in both the US and UK say they plan to shop major discount events like Black Friday and Cyber Monday. Younger consumers are especially enthusiastic about these sales, with 72% of 18-24 year olds planning to participate.

3. Online options: Even as physical stores reopen, the shift to e-commerce shows no signs of slowing down. 53% of respondents who already shop primarily online plan to do even more online shopping this holiday season. Factors like price, product availability, delivery speed, and site user experience are key drivers of online purchasing decisions.

4. Brand reputation: It‘s not just about having the lowest prices. 35% of respondents said they prefer to buy from brands with a strong reputation. Retailers need to maintain a positive brand image and engage in socially responsible practices to win over these consumers.

Data is critical for understanding and catering to these consumer priorities. By gathering information on competitor pricing, monitoring customer sentiment, testing promotional strategies, and analyzing purchasing patterns, retailers can optimize their offerings and outshine the competition.

Data: A Retailer‘s Secret Weapon

In the past, retailers had to rely on limited information to make decisions. They might hire mystery shoppers to scope out competitors‘ stores or conduct time-consuming customer surveys for feedback. But in the digital age, the web offers a treasure trove of real-time, actionable data that can help retailers stay agile and responsive to market trends and shopper needs.

Bright Data CEO Or Lenchner believes data insights will be a key differentiator for successful retailers this holiday season. "It‘s no surprise that the majority of consumers prioritize securing the best price when holiday shopping," Lenchner says. "More organizations will wake up to the potential of using external or alternative data insights to maintain competitive offers and pricing in this ultra-competitive time. Those who don‘t will remain behind."

Collecting and analyzing online data at scale may sound daunting, but all it takes is the right tools and strategies. Modern data collection solutions can gather massive amounts of public web data in minutes, and AI-powered analytics tools can quickly transform that raw information into meaningful insights retailers can act on.

Putting Data Into Action

So how exactly can retailers leverage public online data to succeed this holiday season? Let‘s look at a few key applications:

1. Dynamic pricing: With consumers determined to hunt down the best deals, optimizing prices has never been more important. By collecting real-time pricing data from competitor websites and marketplaces, retailers can instantly identify opportunities to offer the most compelling prices and promotions. Advanced analytics tools can even predict demand and recommend dynamic pricing strategies to maximize sales and profits.

2. Targeted promotions: Generic mass promotions won‘t cut it for today‘s consumers. Shoppers expect personalized offers and recommendations tailored to their needs and interests. By tracking online engagement and purchasing data, retailers can micro-segment their customer base and develop highly targeted promotions that drive conversions. Real-time data also allows for rapid testing and iteration of promotional strategies to continually optimize performance.

3. Inventory optimization: Nothing frustrates holiday shoppers more than out-of-stock items. By monitoring online inventory levels, analyzing purchasing patterns, and applying predictive modeling, retailers can ensure they‘re stocking the right products in the right quantities to meet demand. This data-driven approach to inventory management not only improves customer experience but also minimizes waste and boosts efficiency.

4. Supply chain streamlining: The pandemic exposed deep vulnerabilities in traditional supply chains, making seamless logistics more important than ever. Retailers can use online data to track supplier inventory, monitor shipping disruptions, optimize delivery routing, and proactively communicate with customers about order status. By leveraging data to build a more agile, responsive supply chain, retailers can avoid the shipment delays that disappoint holiday shoppers.

5. Trend spotting: In the fast-moving world of retail, companies need to stay on top of the latest trends and adapt quickly. Online data offers a window into what‘s hot at any given moment. By tracking search trends, social media buzz, and customer sentiment, retailers can rapidly identify emerging product trends and shopper interests. They can then customize their offerings and marketing strategies to capitalize on these opportunities ahead of competitors.

Success Stories: Retailers Winning With Data

Leading retailers are already leveraging public online data to get an edge, especially during the competitive holiday season. For example:

• Amazon uses sophisticated pricing algorithms that collect and analyze competitor pricing data in real-time to consistently offer the lowest prices. During the holidays, these algorithms kick into high gear, enabling dynamic promotions and lightning deals that keep customers coming back.

• Target has invested heavily in its data capabilities to create a seamless omnichannel shopping experience. By collecting online and in-store purchasing data, Target crafts personalized holiday promotions and product recommendations for every shopper. The company also leverages data to optimize its fulfillment operations, offering convenient options like buy online, pick-up in store and same-day delivery.

• Walmart gathers extensive online data to inform its holiday merchandising strategy. By analyzing search trends, competitor assortments, and customer reviews, Walmart identifies the season‘s hottest gifts and works with suppliers to secure exclusive products at competitive prices. The retail giant also uses data to optimize its inventory allocation, ensuring popular items are in stock both online and at local stores.

These are just a few examples of how data-savvy retailers are harnessing the power of online information to win holiday sales. As data tools become more sophisticated and accessible, even small and mid-size retailers can get in on the action and level the playing field with their larger competitors.

The Future of Data-Driven Retail

The holiday shopping season may be the retail industry‘s Super Bowl, but data-driven strategies aren‘t just for November and December. The rapid shift to e-commerce and the increasing availability of online data are transforming retail year-round. Gartner predicts that by 2024, 25% of the global retail market will be using AI-based pricing optimization – up from less than 5% in 2021.

As retailers get more sophisticated in their data collection and analysis, we can expect to see even more innovative applications. For example:

• Hyper-personalization: By tracking individual shopper behavior across channels, retailers will be able to tailor every interaction to each customer‘s unique needs and preferences. Think custom product recommendations, personalized pricing, and even individualized store layouts and assortments.

• Predictive everything: Retailers will leverage machine learning to anticipate shopper needs before they even arise. Predictive modeling will enable proactive inventory management, automated reordering, and real-time demand forecasting to avoid stockouts and missed sales.

• Immersive experiences: Online data will help retailers blend the physical and digital worlds to create seamless, engaging shopping experiences. By tracking in-store behavior and online interactions, retailers can optimize store layouts, enable virtual try-ons, and offer real-time personalized assistance.

• Sustainable practices: As consumers increasingly prioritize eco-friendly and socially responsible brands, retailers will leverage data to measure and improve their sustainability efforts. Online information can help track environmental impact, identify wasteful practices, and communicate green initiatives to shoppers.

The possibilities are endless, but one thing is certain: data will be the key to retail success in the future. Retailers that invest now in building strong data capabilities will be well-positioned to thrive not just during the holidays, but all year long.

Wrapping Up

The 2022 holiday shopping season is shaping up to be longer, earlier, and more competitive than ever. With inflation-weary consumers determined to hunt down the best deals, retailers need every advantage they can get. Fortunately, they have a powerful tool at their disposal: public online data.

By collecting and analyzing real-time information from across the web, retailers can optimize prices, personalize promotions, streamline operations, and deliver an outstanding customer experience. Data allows retailers to understand and adapt to consumers‘ evolving needs and preferences in ways that simply weren‘t possible in the past.

Of course, leveraging data effectively requires the right tools, talent, and strategies. Retailers need to invest in robust data collection and analytics capabilities, break down internal data silos, and foster a culture of data-driven decision making. But for those that get it right, the rewards are substantial. Just look at Amazon, Walmart, and other data-savvy retailers that consistently crush it during the holidays and beyond.

So as the holiday rush begins, retailers shouldn‘t just be stocking their shelves and staffing up stores. They should be firing up their data engines and mining the web for insights to guide every aspect of their holiday strategy. In the race for holiday retail dominance, data will determine the winners and losers. It‘s time to put that data to work and make this holiday season merry and bright for customers and the bottom line.