Predictive retail edge: Harnessing transaction data for competitive advantage

Predictive retail edge: Harnessing transaction data for competitive advantage

Empowering Your Retail Game: A Peek into the Future of Shopping

In the world of retail, staying ahead of the curve is crucial. A decade ago, real-time data that could give you a sneak peek into consumer behavior was non-existent. But now, it's available, and your business can't afford to miss out.

To paint a clear picture of what's to come and adjust accordingly, the focus should be on consumer transaction data. As retail titans continue to gobble up a substantial portion of the market, one significant reason is their heavy investments in data and analytics. Smaller retailers may not have the same budget for data teams as monsters like Amazon or Walmart, but they can still stay competitive using consumer transaction data.

As Jonathan Chin, the brains behind Facteus, puts it, "Transaction data lets retail's Davids take on the Goliaths." Traditional retailers often have a limited view of consumer behavior, relying solely on their own customer data. With transaction data, you can analyze consumer data from more than 100 million credit and debit cards in real-time. This way, you can observe spending trends, monitor competitor performance, track cross-platform purchases, and gauge the health of the consumer economy. Breaking down spending by income, age, and region, state, or even city lets you make informed decisions that other retailers might miss.

Let's explore an example that has the retail world buzzing: Gen Z consumers. These digital natives are heavily influenced by social media. In fact, 85% of Gen Zers report that social media impacts their buying decisions. However, these platforms don't just 'influence' purchases; Gen Zers are buying directly through social media at an exponential rate.

Take TikTok, with more than 150 million users in the United States alone, almost half of whom are under the age of 24. Gen Zers consider TikTok the top place to discover new brands, and they even use the platform more than Google to search for products online. This obsession with TikTok has led to the launch of TikTok Shop, a game-changer for e-commerce.

The adoption of TikTok Shop among Gen Z consumers has been remarkable. Facteus' consumer transaction data reveals that, only two months after the official launch, Gen Z consumers monthly spending had jumped nearly 200%. By November 2023, Gen Z's monthly spending on TikTok Shop was estimated to be over $3 billion.

This is the type of granular insights that consumer transaction data offers. Retailers will often receive vague advice, like "Tie the online and in-store shopping experience," making it difficult to know what actions to take or how to measure success. By contrast, customer transaction data provides clear goals for your business. Once you witness the skyrocketing TikTok purchases among Gen Z consumers, for example, your objective becomes more precise. You can then identify the steps to meet that goal and establish KPIs.

The wealth of insights your business can derive from customer transaction data is immense. Plunge in to discover a world where you can:

• Keep tabs on how your business is doing relative to competitors, from Chipotle vs Panera Bread to Walmart vs Amazon.
• Learn which retailers your customers are frequenting, even down to the cafes and gas stations they visit.
• Quickly track year-over-year sales trends, both online and in-store, by region, age group, and more.

Leading publications like the New York Times and the Wall Street Journal trust Facteus for retail insights. To know the future of retail and secure a spot within it, don't hesitate to leverage consumer transaction data.

1. A competitive edge in retail lies in staying informed on consumer behavior, something that was scarcely possible a decade ago, but today's businesses can't afford to overlook.
2. As retail giants, like Amazon and Walmart, invest heavily in data and analytics, smaller retailers can stay competitive by focusing on consumer transaction data.
3. According to Jonathan Chin, founder of Facteus, consumer transaction data helps "retail's Davids take on the Goliaths," providing insights into spending trends, competitor performance, and cross-platform purchases.
4. Gen Z consumers, a major market segment, are heavily influenced by social media platforms, with 85% reporting that social media impacts their buying decisions.
5. TikTok, with over 150 million users in the US, is a popular platform among Gen Z for discovering new brands, making TikTok Shop a potentially game-changing e-commerce development.
6. In the two months following TikTok Shop's launch, Gen Z consumers' monthly spending jumping nearly 200% was revealed by Facteus' consumer transaction data, with estimated monthly spending of over $3 billion by November 2023.
7. Consumer transaction data provides retailers with clear goals and KPIs, while vague advice, such as linking the online and in-store shopping experience, can leave businesses unsure of what actions to take or measure success by.

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