Key findings of the report include:
- Marketing is still the main focus: Marketing is the most common priority for data analysis spending by retailers in recent years: 46 percent of respondents put this spend amongst their top three areas of focus. Marketing also remains one of the core areas of big data spend in the future, cited by 40 percent.
- Using data to improve strategy is increasingly important: For the past two years, data analysis has been used more often in marketing than in strategy, which is on par with store operations. But in the next two years, strategy is set to take the lead, with 62 percent expecting to see relevant investment in data analysis to support strategy. Some 78 percent of all respondents’ businesses have seen a positive economic return from investment in data analysis for the strategy area, the highest figure for any function or process.
- Data analysis is helping drive brand loyalty, but respondents think it can do more: Sixty-four percent of respondents report increased brand loyalty as a general gain from data analysis and 52 percent say big data has enabled them to expand their sales by offering the next logical item. Yet respondents remain uncertain that they are reaping the full benefit of their data. Only 30 percent are confident that big data is delivering the sales increases that they had hoped, and most respondents (52 percent) simply are not sure.
- Many retailers are still at the early stages of using big data: Only 46 percent of retail CXOs are confident that their firm’s analytical abilities are keeping up with data volumes. Meanwhile just 36 percent believe that they have a well-defined policy for analysing the most valuable information and 30 percent admit that they are not consistently obtaining value from it.
- Data delivers in coordinating omni-channel commerce: Over half of respondents say that big data has brought gains in multi-channel sales (54 percent) and has made multi-channel customer tracking and management more profitable (52 percent). But 38 percent agree that managing differing pricing and margin strategies over varying channels is a major headache.
- Legal restrictions on data usage are a major concern: Two-thirds of retail CXOs say that they have increased the amount of stored information on individual customers in the past year; 64 percent of them cite legal problems with data collection as a major barrier in its effective use. Data protection laws are tied for the second-biggest impediment to making effective use of large amounts of data in strategic planning and decision making in general, cited by 32 percent.
Forward-looking and Cautionary StatementsCertain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, intense competition in IT services, our ability to maintain our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which we make strategic investments, withdrawal of fiscal governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property, and general economic conditions affecting our business and industry. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.