MerchandisingMarketing & CXThought Leadership Insights
Shelley E. Kohan on Data Monetization & Retail Networks
September 14, 2023
Shelley E. Kohan, Forbes contributor and professor at FIT NewYork, discusses the benefits of data monetization in the retail sector, particularly through the use of retail media networks. Retailers collect in-store shopping data and share or sell this information to brands within their ecosystem. This exchange empowers brands by providing insights into product details, customer preferences, and shopping behaviors. As brands become better informed, they can enhance product relevance, which in turn benefits retailers through improved product presentation and increased customer satisfaction.
Shelley highlights the role of retail media networks in advertising product information in stores and the subsequent collection of data. This data allows retailers to measure the return on investment (ROI) of digital marketing initiatives, providing concrete evidence of their effectiveness. As retailers continue to invest in in-store analytics, the potential for data monetization grows, fostering a mutually beneficial relationship between retailers and brand partners.
The growth of in-store analytics will likely lead to more widespread data monetization, enhancing the overall customer experience. By sharing data, retailers and their partners can work together to create a more relevant and appealing shopping environment. Shelley emphasizes that achieving world-class retail status requires shared partnerships and strategic collaboration with brands and wholesalers, all aligned with the goal of better serving the customer market.
Ultimately, Shelley believes that data monetization will be advantageous for both retailers and their brand partners. The insights gained from shared data will enable more informed decisions, leading to improved product offerings and marketing strategies. This collaborative approach ensures that both retailers and brands can stay relevant and meet the evolving needs of their customers.
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Transcript
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Data monetization, I think it's great in a lot of respects. So, if you think about a lot of retailers that are now doing what's called retail media networks, you know, working with other brands within their ecosystem. And so when we're able to collect data from in-store shopping and then share that or sell to a brand, you're only empowering that brand to bring more relevancy to product, to details of products, color, size, SKU information, but also really understanding the customer. So brands that have the ability to take this data that's being sold to them from the retailer, it only is going to make them a better partner, a better wholesale partner, and the retailer actually benefits because they're going to end up getting more relevancy in terms of product, presentation, within the store.
Even marketing efforts for sure. I think it's important to note that a lot of the brands that are using retail media networks, for example, to sell or to advertise product information in stores, we then can collect that data in the store and then we can actually put an ROI to, okay, we did these digital marketing initiatives in a store and here's the actual ROI. So I think the data monetization will actually be favorable for retailers and brand partners. We're going to continue to see the growth of in-store analytics in general, and I believe that as more and more retailers are using more in-store analytics, there's a higher probability that they're going to use that data, be able to monetize it, obviously.
So, I think we will see a growth in terms of data monetization. That is going to make retailers a lot better about that end result, that customer experience. Because again, you know, when you're sharing the data, you're not going to become a world-class retailer unless you have shared partnerships along the way with brands and wholesalers and, you know, strategic partners, all of that. So there has to be this kind of shared vision of wanting the brand to be better and more relevant to that customer market.
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