Data-Driven Retail in the Shadow of GDPR

Marks & Spencer recently revealed it is looking to data analysis to turn its fortunes around, combining information from its Sparks loyalty scheme, online interactions, and M&S Bank to offer personalised experiences to its customers. Lindsay McEwan, VP and managing director EMEA, Tealium, here writes exclusively for RetailTechNews, to highlight the importance of data-driven retail in the face of impending data regulations.

M&S is far from the only retailer using data to drive personalisation. Tesco and Sainsbury’s have long used purchase data to deliver bespoke offers to their loyalty scheme members; while earlier this year John Lewis announced an extension of personalisation experiences on its website to optimise the customer journey. Boden, a retailer well known for itspersonalised clothing catalogues, recently boosted its add-to-basket rates by 18% by tailoring the mobile shopping experience to individual users.

In today’s hyper-connected climate, retailers are increasingly turning to data insights to gain an advantage over their competitors. By unifying multiple data streams, retailers can obtain a 360º view of individual consumers, understanding who they are, what they are interested in, and how and where they shop. This enables them to deliver the engaging personalised experiences that lead80%of consumers to choose or recommended a brand.

But, with the General Data Protection Regulation (GDPR) coming into force in May 2018, the rules around collecting and processing consumer information are about to get a lot tighter, potentially making data-driven personalisation more challenging. With 77% of retailers admitting they don’t yet have a comprehensive GDPR strategy plan, there isn’t much time left to prepare for the new laws. So, how will the regulation impact retailers and what can they do to prepare?

Retailers across the world will be affected by the GDPR, even if they are not located within the EU, because the regulation applies to any company that collects and processes the data of EU citizens. This gives the legislation far greater reach than any previous data laws, effectively covering the global marketplace. One of the key focuses of the regulation is enshrining the rights of the consumer, giving them more control over the information that is stored about them and allowing them to request that data is updated, deleted, or even transferred to another company.

For retailers, one of the key changes will be the obligation to obtain explicit consent from consumers to collect, store, and process their data.