Once customers are acquired, retailers can use analytics to consistently engage with them throughout their lifecycle, converting them into loyal brand advocates over time. This data also allows for measuring, managing and analysing a marketing campaign more efficiently.
Armed with predictive, customer and marketing analytics, retailers can:
- Launch successful targeted marketing, advertising, promotions and product offers to attract customers
- Modify existing pricing strategies, offering competitive prices while sustaining profit margins
- Identify profitable target customers through customer segmentation and profiling
- Establish a close relationship with customers based on a deep understanding of their behaviour and wants/needs
- Identify customers likely to move on to a competitor or elsewhere, and determine drivers and predictors of attrition to reduce customer churn
The opportunity to achieve a competitive advantage from analytics-powered retail is huge. On the product front, it helps in tracking customer needs, leading to the design and creation of innovative product lines, revenue streams, and in some cases, new markets. On the operational side, this valuable data can help retailers to gain better understanding of how to improve efficiency across their business.
Malaysia's economy is expected to expand between 5 to 6 percent in 2015 as the economic growth momentum continues from 2014, led by the private sector. The wholesale and retail trade as well as accommodation and restaurant sub-sectors in Malaysia are projected to see growth of 7.1 percent and 5.9 percent respectively (7.7 percent; 6.1 percent) in 2015 . In order for retailers to fully tap the potential of various market opportunities, especially during peak season, analytics can be a powerful tool for getting ahead in customer relationship building and streamlining multichannel operations, among other benefits.
Jimmy Cheah, Managing Director, Oracle Corporation, Malaysia (pic), said:
Overall, the Malaysian business landscape continued to evolve under the explosion of data, the rise of mobility, and the increasing sophistication of consumers. As businesses become more people-centric in the last twelve months, we have seen more businesses embark on transformational IT projects to provide social, mobile, and cloud self-service capabilities that are designed to better engage their customers and employees for improved satisfaction and increased productivity.
One challenge that CIOs face is budget constraints to innovate with social and mobile technologies. For example, one of the significant issues include trying to update applications, which earlier weren't designed for analytics process and mobile access while having to spend a crippling 80 percent of their budgets on maintaining these legacy applications. In order to reduce costs and innovate the business at the same time, modern CIOs are finding ways to take the technology capabilities to the Cloud.
In Malaysia, there is an increased interest from business organisations across industries to embrace Cloud to upgrade their legacy IT systems for applications' deployments to support the increasing business and customer requirements. Particularly, we are seeing more adoptions of software-as-a-service (SaaS)-based applications for customer relationship management and human resource management.
In the coming year, the convergence of social, mobile and cloud technologies will continue to change how customers interact, how employees collaborate, and how companies provision and manage IT services. With all of these, security will remain on top of the agenda for businesses for moving forward. Combined with increasing regulatory complexity, high-profile breaches, the rise of cloud, mobile, and social computing, will drive unprecedented investments in security.
The next apparent trend is mobility with rapid rising number of mobile devices connected to enterprise systems. According to a global survey sponsored by Oracle¹, enterprises expect to boost mobile-related IT expenses more than 50 percent in two years. In response to rapidly proliferating devices and applications, organizations will invest the time and resources necessary to define a mobile strategy that enables them to transform the business.
Cloud computing will continue to be important for businesses to achieve greater cost efficiencies throughout business processes. Plus, as CFOs continue to recognise the strategic benefits that the cloud can deliver, they will further leverage cloud for finance modernization and ERP processes automation.
In addition, the need for cloud-based analytics, especially marketing and social analytics, will be the core of business transformation strategies focusing on customer experience enhancement.
This year marks "an inflection point" for Oracle as the company has delivered on its promise to provide a full range of cloud computing services, which include SaaS (software-as-a-service), PaaS (platform-as-a-service) and IaaS (infrastructure-as-a-service)
To date, Oracle Cloud supports over 60 million users and 23 billion transactions each day; running on 30,000 devices and 400 petabytes of storage in 19 data centres around the world.
Lastly, in order to further help local organisations transform their businesses while reducing IT complexity, Oracle also announced several key innovations including Zero Data Loss Recovery Appliance for automated real-time data backup system, Oracle FS1 flash storage and the upcoming M7 microprocessor as the latest version of Oracle's SPARC chip, which features "software in silicon" functionality hard-wired into the processor for accelerated database query and memory protection.
Sign up for CIO Asia eNewsletters.